JD Launches Smart Supply Chain Open and Synergy Platform

JD Launches Smart Supply Chain Open and Synergy Platform

by Ling Cao

JD has released a smart supply chain open platform. The announcement was made during JD’s second annual Y (JD-Y is JD’s supply chain innovation division) Open Day held in the company’s headquarters in Beijing today. The event gathered partners and experts in supply chain to discuss industry developments and share case studies. The platform targets an ecosystem approach to optimizing cost, efficiency and experience through the supply chain. JD aims to work with 80% of its brand partners through the platform in next three to five years.

Chen Lin, vice president of JD.com and head of the company’s ecosystem business said, “JD will insist in an open attitude. Only in this way can we build a shared ecosystem. We will also continue to serve clients inside and outside JD.”

Chen Lin speaks at JD Y Open Day

Lin shared that the most uncertain thing is customer demand,and addressed that JD needs agile supply chain infrastructure. He said, “The future of supply chain has three characteristics, demand-driven, open and synergetic, and agile and responsive. Companies need to focus on these three aspects to improve overall efficiency.”

Chinese office products brand Deli has cooperated with JD in supply chain synergy programs, leveraging JD’s technologies such as its end-to-end replenishment system. During the latest Singles Day Grand Promotion, Deli’s sales increased 53% YoY, and inventory turnover days were reduced by 13% YoY.

During the event, JD also emphasized the C2M (consumer-to-manufacturer) trend. Among the first group of enterprises who have tried C2M programs, JD has worked with over 1,000 brands on C2M initiatives, covering over 900 categories. Going forward, JD will continue to invest in C2M, building specific innovation center for key categories.

One of the category is small appliances. JD said it will build a small appliances C2M innovation center with over 500 brands. Qianqian Tan, general manager of JD’s small appliances said, “We will co-build products with brands who share the same perspective on innovation. Based on big data, we will tailor the new products based on specific need, promoting the consistent growth for small appliances.”

Qianqian Tan speaks at JD Y Open Day

One case study is the cooperation with Midea. Dr. Max Shen, supply chain chief scientist of JD.com shared how the team leveraged JD’s technologies such as big data and supply chain model to suggest to Midea to emphasize health-related characteristics in their JD C2M baby and maternal refrigerator. The move resulted in significant sales growth. Wei Liao, supply chain operation head for Midea’s China region also praised the cooperation with JD, and shared his view, “We will bring the experience and efficiency improvement suggestions in supply chain programs to Midea’s sales team which will enable us to create more value and achieve synergetic cooperation.”

Wei Liao speaks at JD Y Open Day

 

(ling.cao@jd.com)

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