JD Logistics announced on Nov. 22 that the company’s airlines affiliate JD Logistics Airlines (formerly known as JD Airlines) has launched a self-owned all-cargo route between Shenzhen, Guangdong province and Hangzhou, Zhejiang province. The first flight took off from Shenzhen Bao’an International Airport to Hangzhou International Airport at 1:30 AM on Nov. 22, and then flew back to Shenzhen and landed at 7:50 AM.
JD Logistics Airlines will operate the route six times a week to mainly carry fresh produce, fashion and apparel products, medicine and medical products, and more categories which need timely delivery or are of high value.
The new route will further improve air logistics efficiency in the Yangtze River Delta and Pearl River Delta, and will strengthen next-day delivery capabilities. It will join JD Logistics Airlines’ previous launched all-cargo route between Nantong, Jiangsu province and Beijing to promote the highly efficient goods circulation among Beijing-Tianjin-Hebei region and the two deltas.
On August 31, JD Logistics received the Operation Certification of Public Air Carriers of Large Aircraft from the Civil Aviation Administration of China (CAAC), marking the official commencement of the operation of JD Logistics Airlines. According to the company’s plan, it will first develop domestic air cargo around China’s major hubs to cover major cities nationwide and gradually develop in the international market.
JD Logistics United States, JD.com’s North American logistics arm, recently announced the opening of its third self-operating warehouse and distribution center in California.
The new warehouse, together with the company’s No.1 and No.2 California warehouses, will create more than 300 local jobs while growing the JD.com’s footprint to over 1.3 million square feet of warehousing space throughout the state.
Joining the company’s best-in-class global logistics network, JD.com’s new warehouse provides omnichannel fulfillment services for both online and offline orders and is a testament to the company’s commitment to utilizing cutting-edge supply chain technology.
“Demand has shifted from the major e-commerce platforms to smaller independent operators, which has led to fragmented supply chains, adding further complexity and challenges to supply chain management, said Gordon Lu, General Manager of JD Logistics United States. “As more and more retailers are shifting from brick-and-mortar stores to e-commerce platforms, retailers continue to sell their products on multiple e-commerce platforms, which requires utilizing multiple warehouses to handle B2B and B2C orders, dramatically increasing their holding costs. This is a challenge JD Logistics is uniquely equipped to solve.”
In this new generation of fulfillment, JD Logistics is replicating elements of its world-class logistics operation in China and bringing those capabilities to address supply chain challenges in North America, Lu explained. This includes providing greater flexibility, inventory optimization, and storage cost reduction to retailers.
One of JD Logistics’ warehouses in California utilizes a container transport unit (CTU) robot system.
Goods are delivered to the warehouse by trucks, where they’re offloaded onto a network of automated conveyors and swiftly scanned, sorted, and stored by fast-moving, self-operating robots. This system allows warehouse employees to wait in designated working stations while the CTUs pick up and drop off goods. Image scanners check the packages in microseconds, while JD’s smart logistics system calculates where the packages should be dropped off. The packages are then grouped by region into larger bins, which are picked up by forklifts and brought to the corresponding trucks for delivery to their final destination.
JD.com’s CTU system helped increase the number of storage units from 10,000 to 35,000 by making full use of the height of the warehouse and improved operating efficiency by 300%.
In addition to warehousing, JD Logistics United States is among the few third-party logistics companies to provide transfer, last-mile delivery, aftersales and maintenance, cross-border transportation, and other services in one stop. JD Logistics’ industry-leading logistics automation capabilities also extend the order cut-off time from the industry average of 2:00 PM to 3:00 PM, giving merchants who work with JD Logistics an extra hour each day to have their same-day orders processed for delivery.
In addition to its three California warehouses, JD Logistics United States also operates two warehouses in New Jersey and one in Georgia, enabling the company to deploy inventory across the country and ensure products are placed closer to end-consumers, further shortening delivery time.
“Two-to-three-day delivery currently covers 90% of our regions, and we’re aiming to ensure two-day delivery across the entire country in the future,” said Lu. “This will eliminate barriers in the supply chain and enable us to elevate the already best-in-class logistics services we provide to our customers.”
JD Logistics operates over 1,500 warehouses in China, and its international business operates approximately 90 bonded warehouses, international direct mail warehouses, and overseas warehouses globally, covering an aggregate gross floor area of approximately 900,000 square meters with an over 70 percent increase year-over-year.
JD Logistics has helped Anakku, a Malaysian baby and maternal brand, improve fulfillment efficiency by 30 percent with all orders fulfilled in 24 hours. The partnership started in August 2022, and JD Logistics has since provided warehousing and fulfillment services to over 1,000 Anakku stores throughout Malaysia.
JD Logistics currently runs self-operated and collaborative warehouses in Malaysia, offering services including B2B and B2C logistics, omni-channel fulfillment, goods return logistics, transportation and more.
Before cooperating with JD Logistics, Anakku faced challenges such as low warehousing accuracy, delivery inefficiency and unstable delivery time, etc. JD Logistics helped the brand develop a customized end-to-end supply chain solution that is based on in-depth research of Anakku’s overall goods volume, vehicles, personnel and other details. JD Logistics also helps manage 10+ transportation companies to monitor their delivery time, optimize the working efficiency and cut Anakku management costs. As a result, Anakku’s omni-channel orders in and around Kuala Lumpur can be delivered the next day, and the time used is less than 50 percent of the local average.
Ng Meng Guan, Chief Commercial Officer of Anakku, said, “We look forward to cooperating with JD Logistics deeper in supply chain collaborations beyond logistics services, and also developing in the Chinese market by leveraging their domestic supply chain capabilities. ”
Currently, JD Logistics’ international business operates approximately 90 bonded warehouses, international direct mail warehouses and overseas warehouses, covering an aggregate GFA of approximately 900,000 square meters with an over 70 percent increase year-over-year.