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.
Dec 20, 2024|
Dada NOW Receives “Leading Restaurant Empowerment Platform” Award at the 10th China Catering Innovation Conference
On December 19, Dada NOW, China’s leading local on-demand delivery platform under Dada Group, was awarded the “Leading Restaurant Empowerment Platform” accolade at the 10th China Catering Innovation Conference in Shanghai. Celebrated for its innovative 4D Service Standards, Dada NOW delivers professional, flexible, intelligent, and customizable services to top food and beverage brands including CHAGEE, KFC, Luckin Coffee, McDonald’s, and Pizza Hut, garnering extensive acclaim within the catering industry.
4D Service Standards
The “Leading Restaurant Empowerment Platform” award honors platforms that provide comprehensive and professional services to restaurant businesses. Leveraging years of experience with leading restaurant brands, Dada NOW has crafted its 4D Service Standards to effectively address delivery challenges and enhance service quality. These standards include:
- Dedicated: Integrated solutions for warehousing, picking, and delivery.
- Dynamic: Tailored delivery solutions for diverse vendor scenarios, including store-stationed and crowdsourced rider options.
- Data-driven: Efficient data management systems utilizing AI technology for order dispatching, fulfillment timeliness, and quality inspection.
- Designable: Customized services for large supermarkets and restaurant merchants to bolster brand value.
Fast and Accurate Delivery
In the fast-paced food delivery sector, Dada NOW’s survey data indicates that 63% of brand merchants and consumers expect timely delivery, 21% prioritize location accuracy, and 9% value punctual pickup. Dada NOW completes delivery in as quickly as 9 minutes, with a 99.5% on-time completion rate and a 98% accuracy delivery rate. Real-time order matching is achieved in as fast as 0.3 seconds, ensuring fast and accurate service.
Unlike delivery providers that only focus on a single merchant type, Dada NOW provides both supermarket and restaurant deliveries. The differing peak times between these sectors allow for capacity complementation, enhancing efficiency and reducing costs. With a nationwide network of over a million riders and an industry-leading on-demand delivery model, Dada NOW has executed over 900 million route plans, swiftly allocating resources during peak periods such as lunch and dinner rushes, new product launches, and promotional events.
Customized Solutions for Merchants
To meet the strong customization needs of brand merchants, Dada NOW can offer bespoke services for each store, integrating its delivery capacity, products, and technological solutions. A notable example is the partnership with Sam’s Club, for which since 2017 Dada NOW has developed customized solutions in delivery capacity models, co-branded equipment, rider training, and system integration. This collaboration has achieved nearly 100% coverage of customized rider equipment such as helmets, uniform and delivery containers, and provides excellent customer service experiences. This highly effective collaboration demonstrates Dada NOW capabilities that are also transferrable to the restaurant sector.
Luckin Coffee, a long-standing partner of Dada NOW, exemplifies the high standards in the coffee and tea beverage sector, achieving a “30-minute delivery rate of 99.9%” to maintain peak freshness delivered to customers’ doorsteps. Dada NOW’s flexible rider network effectively manages peak demands and large order volumes during product launches and promotions through an intelligent order dispatching system, ensuring optimized delivery routes and careful handling to prevent issues like coffee spillage. Since 2023, this partnership has earned Dada Now several accolades from Luckin Coffee, including the “Best Strategic Cooperation Award” and “2023 Outstanding Delivery Partner,” with rider Tu Yanping being recognized as one of four “Annual Gold Riders” nationwide.
Dada Group operates two core businesses: JD NOW, formerly known as JDDJ, an instant retail platform, and Dada NOW, a local on-demand delivery service. Leveraging its extensive crowdsourced delivery network of millions of riders, Dada NOW provides a comprehensive service system open to merchants and individual senders across various industries and product categories. The company’s two platforms operate independently and collaboratively.
(vivian.yang@jd.com)
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