by Ling Cao and Ella Kidron

 

Jon Liao, CSO of JD.com gives keynote speech at JDD, explaining that supply chain is the unchangeable core advantage for JD amidst a changing environment.

JD’s supply chain efficiency has already made significant contributions in China, while there is still a way to go. He explained, “If we compare today’s 14.7% with Europe and the US where the number is less than 10%, we see that we still have a huge amount of room to improve efficiency, which is why we need to build new infrastructure in the future.”

In the industrial internet era, Liao shared that based on the digital and intelligent supply chain infrastructure that JD is going to build, the company wants to achieve three objectives in the next 10 years: 1) empower the real economy, 2) improve efficiency among industries, and 3) promote environmentally friendly programs.

 

Dr. Bowen Zhou, Chair of JD Technology Committee, speeches at JDD, sharing that advanced technology will drive intelligent supply chain digitalization.

Dr. Zhou shared, “What we are most certain of is that the industrial transformation will be promoted through emerging technologies, such as AI and cloud computing.” He also predicted that by 2030, all companies worldwide will have been transformed into technology companies.

At the event, Dr. Zhou also joined other JD executives to unveil the launch of JD Explore Academy, which will explore digital and intelligent frontline technologies. JD will also recruit global talent to join its team in these fields.

 

Lei Xu, CEO of JD Retail, stresses the fact that JD Retail itself is a digital and intelligent company based on supply chain.

Xu said, “Through there are many uncertainties this year, JD Retail has gained high quality growth in first three quarters in terms of revenue and users. The digital and intelligent supply chain made a crucial contribution.” He added that ensuring growth is the key focus when everything is uncertain. Xu shared that using digital and intelligent solutions to power retail is a certain way to improve the business. It can provide growth at both the supply and consumption ends.

 

Shengqiang Chen, CEO of JD Digits, shares how digital technology can benefit real economy.

Chen shared that “smart city” is the best arena for digital technology application.  He shared that JD Digits has built a modern city management platform, which can help local governments improve efficiency. Based on the platform, JD Digits helped Nantong, Jiangsu province build China’s first modern command center.

 

Zhenhui Wang, CEO of JD Logistics, gives keynote during JDD, sharing that digital and intelligent supply chain transformation is the “must be done” thing.

Wang said, “Technology innovation is the key factor in the current situation. Digital and intelligent supply chain transformation is the ‘must be done’ thing.” He added that JD Logistics will work with partners to promote this transformation and transformation.  The company will open itself to find new opportunities, and contribute its value to supply chain for all industries.

 

( lingcao@jd.com;ella@jd.com)

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)

by Ling Cao

During JD’s fourth annual tech summit JD Discovery (JDD) held on November 25^th in Beijing, JD has shared plans to build a digital and intelligent supply chain. JD-Y, JD’s supply chain R&D unit (focused on supply chain innovation) shared a relevant breakthrough and application regarding its self-built industry-leading end-to-end replenishment model (E2E model).

A paper on the model has been accepted and to be published soon by Management Science, a world-leading scholarly journal within INFORMS, an international association for professionals in operations research and analytics, which publishes scientific research on the practice of management. The journal has also been named top 20 journals valued by business school deans and academic program directors from BusinessWeek.

Dr. Max Shen, supply chain chief scientist of JD.com shared, “Our E2E model shortens the decision process and provides an automatic inventory management solution with the potential to generalize and scale. The concept of E2E, which uses the input information directly for the ultimate goal, can also be useful in practice for other supply chain management.”

Dr. Max Shen

Specifically, the model can realize self-learning. Applying deep learning technology in JD’s real scenarios enables the company to achieve automatic merchandise replenishment based on historical sales performance without the need for sales forecast.

JD tested this model with the oil and condiments categories. After monitoring the effects for four months, JD saw that online product availability improved 0.5%, while the inventory turnover days reduced 2.8.

The future of supply chain is demand driven, open, synergetic, and agile. JD aims to build up and open its capabilities with industry partners. This model is a best practice example of how frontier technology can be applied in real scenarios.

 

To get the full paper, pls contact: ling.cao@jd.com

by Vivian Yang

JD Health launched a digital pharmacy management software platform (药京通, literally means Pharmacy by JD’s Track) that is tailored to the needs of pharmaceutical retailers. The announcement was made during JD’s global technology summit “JD Discovery” (JDD) on November 25^th.

Many drug stores have faced problems of high cost and complicated operations of SaaS (software-as-a-service) systems that lack internet connection, and ability to track after-sales services and handle e-prescriptions. JD Health’s system is created to tackle these pain points through creating a digitalized and intelligent platform that connects both upstream pharmaceutical suppliers and downstream sales scenarios, aiming to improve operational efficiency and service quality for pharmacy owners.

The system is open for multiple scenario such as the smart supply chain module and warehouse store module, and supports customized development. So far its digital capacities are able to empower six areas of JD Health’s businesses, including its B2B pharmaceutical procurement platform, O2O fast medicine delivery services, drug stores with e-prescribing, big data analysis, mobile mini app for drug stores and smart health checkup hardware.

For offline stores, the system provides digital support for medicine procurement, sales management, membership management, pharmaceutical services, compliance management and smart store control management.

Take the medicine procurement management as example. Leveraging the system’s AI algorithm on information, capital and logistics resources optimization as well as its channel integration abilities for procurement planning and order placement drug stores can easily achieve zero-cost stocking, zero-inventory burden and intelligent procurement.

During the JD Discovery summit, JD Health and JD IoT jointly released a smart speaker product called “family doctor guardian star” (家医守护星) integrated with JD Health’s telemedicine service program “Family Doctor”. With this speaker, customers can use voice command to call their designated general practitioner under this program for video or telephone consultations and make face-to-face appointments. Moreover, the speaker can be connected with other health monitoring devices like sphygmomanometers, blood glucose meters, smart watches and more, to push medication reminders, track body monitoring data and send health analysis reports in real time, or on a weekly or monthly basis.

 

(vivian.yang@jd.com)

by Ling Cao and Ella Kidron

JD has launched four new enterprise-level products, which will be applied in retail, logistics, finance, education and management. The announcement was made at JD’s fourth annual tech summit JD Discovery (JDD), held on Nov. 25^th in Beijing.

The products are: 1) a retail cloud ecosystem; 2) a digital supply chain platform; 3. a smart human-robot interaction platform; and 4) a modern city management system.

Jon Liao, chief strategy officer of JD.com said during JDD, “JD has accumulated experience in merchandise and logistics supply chain and built world-leading supply chain infrastructure, which will continue to optimize cost, efficiency and experience.”

Jon Liao, CSO of JD.com gives keynote during JDD

One of the products is a retail cloud ecosystem, which combines capabilities in technology, business, data and user management, and opens them to partners, providing enterprises and institutions with integrated services. For example, JD’s retail cloud has helped one large automotive company to build marketing platform covering viewing and purchasing, as well as auto aftermarket services, helping the client go digital.

JD has built a nationwide logistics network based on technology. At the conference, the company released a digital supply chain platform, which provides solutions for enterprises covering comprehensive supply chain management, especially in the areas of supply chain design, planning and execution, covering industries, including fast-moving consumer goods (FMCG), automotive aftermarket, home appliances and more. Leveraging the platform, JD helped Amway reduce logistics cost by 10%, and shorten inventory turnover days from 75 to 45.

JD has also launched a smart human-robot interaction platform, including smart customer service, which serviced customers 320 million times during the latest Singles Day Grand Promotion, among which the intelligent marketing guide increased conversion rate for the Haier flagship store on JD by 42%.

In addition, JD Digits announced a modern city management platform. Based on JD Digits’ intelligent city operating system, the platform can help local governments improve efficiency. Based on the platform, JD Digits helped Nantong, Jiangsu province build China’s first modern command center.

During the conference, JD also announced the establishment of JD Explore Academy, which will explore digital and intelligent technologies in AI, quantum computing, data science, engineering and management, decentralized computing, scientific research ethics, as well as science and art. JD will also recruit global talent to join its teams in these fields.

JD Explore Academy launch ceremony during JDD

Bowen Zhou, Chair of the JD Technology Committee shared at the conference, “In 2030, all enterprises will be technology-based.” He added that technologies such as AI, big data, and cloud computing will bring the most certainty and opportunities.

Bowen Zhou, Chair of JD Technology Committee addresses audience during JDD

 

(ling.cao@jd.com; ella@jd.com)

by Hui Zhang

“What we are most certain of is that the industrial transformation will be promoted through emerging technologies, such as AI and cloud computing,” said Dr. Bowen Zhou, Chair of JD Technology Committee, at the fourth annual tech summit JD Discovery (JDD) held on November 25^th in Beijing.

Dr. Zhou predicted that by 2030, all companies worldwide will have been transformed into technology companies, and cited data from IDC (International Data Corporation) projecting that 65% of global GDP will be driven by digitalization by 2022, and 75% of company leaders will apply digitalization to enhance their business capabilities by 2025.

Bowen Zhou, Chair of JD Technology Committee addresses audience during JDD

Why do we need to digitize the industrial chain? In Dr. Zhou’s view, it is the direction of the dynamic development of the industry, and where the opportunities of the next decade lie. Looking back at the changes in the domestic industrial chain, in the early days, the direct delivery of natural products to consumers was mostly regional. After upgrades to the supply chain, the next stage was primary processing, with raw materials processed by processors and retailers before being delivered to consumers.

After joining the WTO in 2001, Chinese people could buy products not only domestically, but also internationally, and the industrial chain underwent significant changes, with manufacturers and brand owners emerging between processors and retailers. With the industrial configuration becoming more complex and refined after 2008, intelligent and efficient mobilization of the industrial chain, which will be the 4.0 phase, will become a necessity for the whole society in the next ten to twenty years, Zhou said.

“The digital and intelligent supply chain phase 4.0 will bring a highly reliable, responsive and digital supply chain network to the whole society in the future,” said Dr. Zhou.

Promoting supply chain digitalization is also the ultimate goal of JD, which has its own unique advantages in building a digital intelligent social supply chain, according to Dr. Zhou. JD is an enterprise connecting both economic entity and internet, both supply and demand, and is able to gain in-depth insight into industry highlights and pain points. JD has strong capability in supply chain management; additionally, as a leading internet platform, JD has also accumulated vast experiences in advanced technology and business operation.

At the same time, JD has opened up its capabilities to the public, from optimizing merchant supply chains to working together with merchants in C2M customization. JD has fully leveraged its own value to promote the digital and intelligent supply chain.

In Dr. Zhou’s view, JD will continue to open its digital and intelligent supply chain capabilities to the public and explore cutting-edge technology to contribute in the promotion of social supply chain digitalization.

“We will open up AI, big data, IoT and cutting-edge technologies to provide a unified cloud base, data intelligence platform, technology platform and collaborative management platform so that the ecosystem partners can achieve long-term win-win in mutual synergy,” said Dr. Zhou.

 

(zhanghui36@jd.com)

by Yuchuan Wang

During JD.com’s fourth annual tech summit JD Discovery (JDD) held online and offline in Beijing today, the company released the “Jinghui Digital Supply Chain Platform”, which provides full-scenario solutions for enterprises on supply chain management, especially in the area of supply chain design, supply chain planning and supply chain execution, covering the industries of fast-moving consumer goods (FMCG), automotive aftermarket, home appliance and more.

With increasing complexity of the relations between demand and supply, and accelerated by the outbreak of COVID-19 pandemic, enterprises are keen to upgrade their supply chain to be intelligent and digitalized.

Managing 6 million SKUs (stock-keeping-units) with turnover days of 34.3 (which is one of the lowest among the top global retailers), JD will help enterprises improve their supply chain efficiency and reduce costs through the opening up of Jinghui. Leveraging advanced algorithms and a smart decision-making model, Jinghui provides services from big data, network optimization, intelligent forecasting to intelligent replenishment, allocation and intelligent supply chain execution.

Leveraging the Jinghui platform across a network of 24 warehouses and hundreds of stores in China, Amway China was able to lower the logistics costs of finished goods by 10%, increase the online-availability to 99.5% and reduce turnover days by 40%.

“Our leading algorithm experts have been in the industry for decades,” said Bing Fu, head of strategy at JD Logistics (JDL). “JD’s leading software products and experienced operational capabilities, as well as its huge base of industrial, logistics and commodity big data ensure that we provide scientific supply chain management solutions for enterprises.”

 

(yuchuan.wang@jd.com)