- Apr 09, 2020
- Business Update
JD Shares Insights on Coping with the COVID-19 during a Webinar
by Ling Cao
On April 7th, JD shared its insight about COVID-19 in China and how JD has responded during an online webinar hosted by LLamasoft, a leading provider of enterprise supply chain design and decision-making solutions, and one of JD’s strategic partners.
During the webinar, Alfred Yao, supply chain optimization director of JD Logistics shared how JD adopted systematic measures to ensure consistent operations of the supply chain during the epidemic, such as prioritizing employee protection, establishing an emergency response program coordinating policies and efforts across functions, and employing flexible methods to increase contactless delivery, as well as applying intelligent algorithms to enable smarter delivery routing, in order to circumvent bottlenecks, to increase efficiency, and to prioritize supply to where strategic resources are most urgently needed.
Lei Zhou, strategic planning director of JD Logistics explained that the strong logistics infrastructure and six major networks JD has had for years helped the company in the response. “Wuhan is the hub for JD’s Central China region, but with challenges (like route suspension) we managed to redirect the volume to other DCs（distribution centers） nearby, such as Nanjing,” he said. “We saw orders increase a lot during this period, but were able to handle them. That’s mainly due to two factors: Firstly, based on an AI-enabled system, we try best to forecast where demand will be. Secondly, we leverage our network to put inventory nearest to customers. In this way, we can easily re-plan the inventory to respond to the special situation.” Zhou added.
Alfred also shared ideas for global companies as to how to quickly adapt to emergencies, advising companies to accelerate the digitalization of the business, to further boost the level of automation, to perform supply chain scenario planning and to make stronger contingency plans, all of which makes the supply chain more flexible and robust. He also emphasized the importance of strengthening collaboration with suppliers, customers and other stakeholders to enable a global supply chain community.
As far as how JD has helped partners during the epidemic, Alfred explained, “A global Fortune 500 company procured 55,000 bottles of hand sanitizer from overseas, and asked JD Logistics to transport them from Singapore to Shanghai by air. JD Logistics managed to complete the DGs(‘dangerous goods, such as many types of disinfectant) packaging and certification, and secured in the cargo space amid massive reduction of flights, and completed the customs clearance in the fastest way possible to have the goods delivered to the customer.”