During JD’s fourth annual tech summit JD Discovery (JDD) held on November 25th 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.
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 25th.
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.
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. 25th 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
“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 25th 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.
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.”
For many, AI can evoke images of a less human world in which technology reigns— but for MIT professor Daniela Rus, AI actually enables more human experiences, carrying with it enormous potential for good.
Speaking at this year’s online JD Discovery conference, which gathered industry experts from around the world in all areas of technology, Rus posed a scenario in which a visually impaired individual dons a smart wearable device to take a walk on a summer day. The device might describe a beautiful window display through a brail buckle that spells out the description, vibrate gently on the user’s left to notify him of an obstacle; or communicate that a friend is walking by—or even alert him to the presence of a small cat. Later the person might find a bench where he can sit and feed ducks.
“Imagine the richness of a user who can take advantage of the AI robotics learning technologies that enable these kinds of capabilities, and how much richer this experience is than walking down the street using a white walking stick where all you get is one bit of information: Is there an obstacle in front of me, or not? This is extraordinary,” she said.
Beyond enriching people’s lives on a daily basis, AI is also playing a key role in the ongoing fight against COVID-19, she said. A team of students in her lab is currently developing ways to use robots to fight the spread of infection by disinfecting spaces and ensuring food security, an essential task during a pandemic. One project developed by the team is a robotic system that traverses the warehouse for the Greater Boston Food Bank, neutralizing any potential virus particles with UVC light. Computing its own speed and trajectory in order to cover every surface of the space, the robot is ensuring the safety of not only warehouse workers, but everyone who receives food from the project.
In this way AI actually enhances our humanity, opening the way for safer, more enriching experiences. But the public understanding of these technologies has often lagged, said Dr. Bowen Zhou, president of JD Cloud & AI, in an essay touching on similar topics earlier this year.
Some of this lingering squeamishness around AI is rooted in unfamiliarity, Zhou said. “Many people lack full understanding of AI, and therefore are more likely to view AI as a nebulous cloud instead of a powerful driving force that create a lot of value for society,” he said.
Additionally, the technology is proliferating faster than regulations can keep pace, he said.
Rus echoed Zhou’s thoughts, noting that it will be up to scientists and AI experts to proceed with deep consideration of how the technology should develop.
“We have to be thoughtful about the consequences of our work,” Rus said. “We have to ensure that advancements serve the greater good, and that everyone should have the opportunity to benefit from [such] a future.”
Zhou believes that as long as the AI community is willing to face these concerns head on, there is little to fear about the development of these technologies. Making AI more accessible through education and communication about its benefits will be key to helping people understand the potential value of AI, he said. JD is already focused in this direction, with research in visual IoT that enables AI to be more explainable and accountable, among other efforts, he said.
“[Building] trustworthy AI is a marathon, not a sprint,” he said. “But if we embrace AI innovation and regulation with an open, inclusive, principle-based and collaborative attitude, the value AI can create can far exceed our expectations.”
Rus noted that in light of the broader difficulties and challenges facing humanity—COVID-19, climate change, disease, inequality and more—it would be easy to feel disheartened.
“But I don’t,” she said. “I feel hopeful, because when I look around I see the many ways in which technology in general and AI in particular have made the world better. There are so many ways in which tech can help us with our greatest challenges, whether those are challenges faced by individuals or challenges faced by society.”
Rus envisions a future in which routine tasks are increasingly offloaded to machines, so that people can focus on cognitive, strategic tasks that allow them to do critical and strategic thinking.
“I imagine the doors that AI will open for the future,” she said. “It is so wonderful to be part of this revolution at this point in time.”
JD Health signed an agreement with Nanjing Chia Tai Tianqing Pharmaceutical (CTTQ) on November 23rd to establish cooperation in pharmaceutical supply chain, Internet hospital and pharmaceutical poverty alleviation.
Leveraging its supply chain advantage, JD Health will help CTTQ better reach downstream pharmaceutical stores through its B2B business, JD Medicine Procurement．The platform is of the largest third-party pharmaceutical wholesale platforms in China. Through JD’s pharmacy business, CTTQ will have access to JD’s over 440 million active users and will bring them high-quality drugs. CTTQ will also share its professional physician resources with JD Health so as to provide professional medical advice to patients, especially on cardiovascular disease.
Both sides will initiate public welfare programs in the near future to provide subsidies on drugs for cardiovascular disease treatment, and provide free consultations as well.
“JD Health will open its capabilities in areas such as pharmaceutical supply chain, Internet hospital, health management, and intelligent medical development to provide better, more convenient, efficient and safer pharmaceutical health services for all users,” said Xinyuan Zhou, head of JD Pharmaceutical Procurement and general manager of Channel Innovation at JD Health.
CTTQ, founded in 1969, is a multinational pharmaceutical company with integrated R&D, manufacturing, marketing, sales and distribution capabilities. It is ranked 16th on the list of the “Top 100 Pharmaceutical Enterprises in China” in 2019, and among the top 5 most innovative Pharmaceutical Enterprises, and top 10 fastest-growing pharmaceutical manufacturers in China.
JD and leading smart bidding service provider Beijing Truelore worked together to help Renmin University of China (RUC) build a smart procurement platform, making the procurement of office supplies more efficient, announced on a conference in Wuhan on November 19th.
As smart procurement for enterprises has become increasingly common, more universities and colleges have also increased their demand for smart procurement platforms. However, it’s very challenging to build smart platforms for universities, as the procurement system for universities and enterprises have many differences. In the past, RUC tried to build a smart management system with other service providers, but the result was not ideal.
Now JD Industrial Technology, leveraging its experience on digital procurement, has built a smart procurement platform for RUC that covers the whole process of procurement work, including bidding, procurement management, contract management, finance management, asset management and more, which can largely save time for procurement application and improve the efficiency of procurement. The system can automatically recognize products that meet the requirement of government regulation, and is carefully designed to ensure the procurement staff learn to use it easily.
Bidding is an especially important part in the whole procurement process. Traditional offline bidding has often faced trust concerns on the fairness of bidding, as the government cannot effectively trace and review the transaction data. Without smooth data sharing, the bidding process may become slow and tiring. JD and Truelore jointly designed the smart bidding system to make bidding more transparent and efficient for RUC. “Building a smart bidding system requires deep understanding on the product and technology. This is why we choose to work with a leading service provider like Truelore to improve our ability in this area,” said Ning Hai, general manager of business development at JD Industrial Technology.
