JD’s Cold Chain National Network Empowers a Dairy Firm in Inner Mongolia

JD’s Cold Chain National Network Empowers a Dairy Firm in Inner Mongolia

by Yuchuan Wang

Sales of Langege Dairy, an Inner Mongolia based dairy enterprise, increased 300% on a year-on-year basis during this year’s Singles Day Grand Promotion (Nov. 1-11). Through its deep collaboration with JD Cold Chain, this regional dairy company is expanding its footprint to the even larger national market.

Constituting approximately 12% of China’s total land area, Inner Mongolia has incubated well-known dairy brands in the country such as Yili and Mengniu. Established in 1988, Langege had focused on its regional business in Inner Mongolia. In 2015, it began to supply to supermarkets in Beijing. However, limited cold chain infrastructure made the company unable to sell to a larger national market.

“Cold chain is the lifeline of dairy enterprises, especially for those of us who specialize in chilled dairy products,” said Jianguo Ge, head of logistics at Langege. “A quality wide-coverage and efficient cold chain service provider is crucial for us to expand our business.” In June this year, Langege came to JD Cold Chain for help.

JD’s logistics cold-chain truck drives out of Langege’s enterprise park

Operating China’s largest cold chain trucking service network, JD Cold Chain has over 34,000 truck routes in 31 provinces, municipalities and autonomous regions and is able to completely meet Langege’s transportation needs. “The collaboration with JD also helps optimize our logistics management,” said Ge. Previously, the company had to work with different service providers in each region, resulting in service quality and price disparities. Ge recalled a time that Langege hired a local logistics company to ship dairy products to Xi’an only to find that the products had been spoiled due to temperature wasn’t strictly controlled.

Langege‘s signature product is high quality yogurt with a shelf life of 21 days. With the help of JD, shipping time has been decreased to 1 to 2 days and JD enables a full visibility of temperature control during transportation process.

Inside one of JD’s cold chain warehouses

In addition, the warehousing and delivery network for fresh produce which covers 300 cities also supports Langege in its e-commerce sales. As the company gradually puts its products in JD’s cold chain warehouses, Ge has seen the improvement of cost and efficiency and customer satisfaction.

“Right now, consumers from five cities including Beijing, Shanghai, Guangzhou, Shenyang and Jinan can buy our products on JD. We hope that number can be 50 or even hundreds of cities in the future through the collaboration with JD Cold Chain,” said Ge

 

(yuchuan.wang@jd.com)

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