Oct 25, 2018|
JD.com Supply Chain Technology is Modernizing Commerce Throughout China
Small and medium-sized businesses across China are upgrading their supply chains with the JD Cloud Warehouse Management Solution, a smart, cloud-based supply chain management solution developed by e-commerce giant JD.com.
Officially launched last December, the solution is a new initiative that uses the e-commerce giant’s proprietary technology and supply chain expertise to holistically upgrade existing warehouse management systems.
The initiative enables businesses of any size to increase numbers of orders and customers, while improving efficiency.
Part of JD’s Retail as a Service (RaaS) strategy, which opens the company’s technology and infrastructure to other companies and industries, the system also helps companies lease underutilized warehouse space to third-parties, which maximizes use of real estate while making the entire logistics industry more efficient. Partners can benefit from co-branding with JD, and have the option to use JD’s ultra-efficient delivery service, with products marked as “Delivered by JD Logistics” on JD’s e-commerce website.
The solution was originally designed to power JD’s own nationwide logistics network, which can deliver over 90% of orders same- or next-day. Using JD’s smart supply chain open solution for merchants, the initiative leverages big data to help partners accurately predict inventory demand and supply, and to organize warehouse layouts for maximum efficiency. JD also provides training programs to partners’ employees to help improve operational and assessment standards.
“The JD Cloud Warehouse Management Solution shows how JD’s Retail as a Service strategy can help build more sustainable businesses while improving services for consumers everywhere,” said Yaodong Jiang, who leads the program at JD Logistics. “With our nationwide network and understanding of the warehousing industry, we can improve the efficiency of warehousing across multiple regions and businesses by leveraging and sharing our technology.”
As of now, over hundreds of partner warehouses are using JD’s solution, largely in China’s third or fourth tier cities. One partner, e-commerce fulfillment service provider Juzi, who is focused on small appliances, daily needs, cosmetics and baby and maternal, upgraded its existing warehouse in Guangdong province with JD’s solution in April, and saw orders increase by 400% while its portfolio of brands more than tripled. Meanwhile Zhongshang, a warehouse operator based in Sichuan, was able to expand its facilities to 400,000 storage units in six months, having already attracted two business customers and fulfilling over 8,000 daily orders using the solution.
“Upgrading our facility to the JD Cloud Warehouse Management Solution has had a transformative effect on our business,” said Jiechun Huang, General Manager of Juzi. “The program gives us access to years of experience in nationwide supply chain management that we didn’t have the means of realizing on our own. The improvement we have seen in our business results speaks for itself.”
Mar 26, 2020|
JD Supply Chain Alleviates COVID-19 Impacts, Facilitates Industry Resumption
by Yuchuan Wang
During the epidemic, JD has been continuously delivering daily necessities for consumers and aid supplies to the epidemic epicenter in Wuhan, Hubei province, all based on the company’s investment in next-generation infrastructure, including its in-house logistics network, smart supply chain and technology innovation over the last decade.
Guarantee national supply
As the world is under the stress of COVID-19, the importance of building strong supply chain capabilities is being emphasized repeatedly in helping economic recovery. According to Sarah Watt, senior director at Gartner Supply Chain, “Supply has been impacted in three primary ways: limited access to employees due to quarantines, factory closures or manufacturing slowdowns and limited access to logistics to move goods.”
Thanks JD’s early investment in smart supply chain, which dates back to 2007, the company has been able to be extremely agile in supplying goods during the epidemic period. JD collaborated with suppliers to efficiently allocate goods, worked with manufacturers to resume production based on big data analysis and maintained continuously delivery across the country, even in Wuhan.
From January 20th to February 28th, JD supplied 220 million products to its nationwide consumers including 290,000 tons of rice and flour, eggs and vegetables. JD Logistics transported 50 million medical supplies, and JD Health collaborated with over 13,000 offline pharmacies to provide 30-minute delivery service.
JD’s supply chain also helped 3,900 tons of agricultural products that risked becoming unsellable due to the coronavirus outbreak to be delivered to consumers nationwide. For example, in Hefeng county, Enshi city in Hubei province, JD helped 350 local farmers make 50 tons of citrus for sale online, with over 1,500 orders per day.
Help brick-and-mortar stores resume business online
Through various omnichannel solutions, JD is helping tens of thousands of offline stores resume business online.
With the help of JD, over 700 Five Star Appliance’s stores are transforming into community warehouses to supply online orders from social platforms such as WeChat groups. It also helps JD sell online inventory, which is fulfilled by JD Logistics.
Based on Location-Based-Services (LBS), JD’s online sales events are enabling offline stores to interact with and deliver to its surrounding consumers. In addition, JD Live helps offline stores conduct live streams to attract consumers.
Ensure enterprises resume operations
TIEM is a manufacturer for gaming products in China. Affected by COVID-19, the company faced factory shutdown. JD quickly provided support in warehousing, logistics and supply chain financing for TIEM, helping the company fulfill its backlogged inventory and reach even more consumers.
At the same time, the company has helped support work resumption needs such as office supplies, protective equipment and services. JD’s enterprise procurement business JD Business has served over 1.3 million enterprise clients since the outbreak.
JD’s strong supply chain ability helped Chengdu Railway source and supply 60,000 protective supplies in as few as 48 hours.
JD also helped Deyin, an MRO (maintenance, repair and operations) products supplier from Qingdao, Shandong province, sell nearly RMB 1 million in products in half a month, helping the company increase revenue even when operations were temporarily shut down.
To get a sense of JD’s smart supply chain capabilities, take a look at the graphic below:
What is Global Smart Supply Chain?
