Sep 24, 2019|
JD.com’s New Supply Chain Innovation Program Brings Retail Closer and Faster to Home
JD.com has launched a new supply chain innovation program that brings offline and online retail closer together than ever before, seamlessly and conveniently enhancing the shopping experience for customers. The initiative was revealed at a small media event hosted at JD’s headquarters earlier today. By leveraging the offline retail outlets where many products already sit, this program improves the overall efficiency of the supply chain by expanding availability and speeding goods to shoppers. This is possible because, instead of having every product pass through traditional warehouses, distribution centers, and delivery stations before reaching the customer, offline channels can now directly deliver orders that come from JD, instantly expanding what is already China’s most extensive supply chain network.
The first of its type globally, the new program integrates multiple types of offline channels, including supermarkets, convenience stores, some brands’ offline stores, and Dada-JD Daojia, China’s leading crowdsourced delivery company. As a result, JD is able to increase efficiency and get products into its customers’ hands even faster. The average delivery time with the program is two hours, but customers can receive orders in as little as 30 minutes. Further, brands participating in the program with JD are likely to see improved store traffic and turnover rates.
The supply chain innovation program is part of JD’s broader Retail as a Service (RAAS) strategy to open its extensive resources to partners and others. It is also builds upon JD’s highly advanced and successful inventory integration project with Walmart. In that program, customers who buy any product from JD’s first-party platform that is also available in a Walmart store may receive it from the store if it is closer to their house than a JD warehouse. With this enhancement, several other retailers have also joined the program including Better Life, Nongfu Spring, Nestlé, Coca-Cola, Tsingtao Beer, and liquor retailer 9bianli. Currently the program covers items such as non-alcoholic beverages, beer, wine, rice, and flour — many products that are bulky, heavy, and challenging to store and ship.
Coca-Cola is one partner that is already seeing benefits from this innovative smart supply chain initiative. When consumers order Coca-Cola beverages on JD, the system instantly analyzes factors such as proximity to the delivery address and determines whether it’s more effective to source from a JD warehouse or from one of the offline channels. If an offline channel is chosen, the product will be packed offline and delivered to the consumer directly. Before the end of 2020, Coca-Cola plans to expand its participation in more than 20 cities and operate about 20 delivery locations (such as convenience stores) in each city.
Another partner that is already reaping significant benefits is top Chinese beverage brand Nongfu Spring. Since joining JD’s program, the daily orders in Nongfu’s offline water stations have increased about 20% overall and doubled on June 18, the final day of JD’s 18-day anniversary sales festival. Further, 90% of orders were delivered within two hours without adding employees in Nongfu stations, a clear indicator of increased efficiency.
“Partnering with JD for this innovative program boosts traffic while increasing delivery speed, which is extremely beneficial to consumers,” says Li Zhou, Chief Secretary of the Board, Nongfu Spring: “We see enormous potential to deliver more orders from offline channels in the future, and will roll out the program in more cities around China soon.”
“We’re shortening the supply chain by empowering offline retail channels to fulfill orders directly, rather than having to go through warehouses.” said Carol Fung, president of JD FMCG. “The fact is a lot of products, especially ones that we need and those we use every day, are already in nearby stores, but they are delayed by going through the many links of the traditional supply chain. This program cuts out unnecessary steps, improving efficiency for retailers, maximizing resources, reducing costs, and improving the customer experiences.”
Currently the program covers 20,000 offline stores in 54 cities, including 175 Walmart hypermarkets, 198 Nongfu Spring offline water stations in Beijing, and 166 9bianli liquor stores throughout China.
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
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