JDD Series: Advanced Technology Will Drive Intelligent Supply Chain Digitalization

Posted on by Hui Zhang

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 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

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)

JDD Series: JD Releases Jinghui Digital Supply Chain Platform to Power Digitalization of Enterprises

Posted on by Yuchuan Wang

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)

JDD Series: AI for a More Human World: MIT Professor Daniela Rus Speaks at JDD

Posted on by Kelly Dawson

by Kelly Dawson

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.

MIT professor Daniela Rus, AI actually enables more human experiences, carrying with it enormous potential for good.
Daniela Rus

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.”

 

(kellydawson@jd.com)

JD Health and CTTQ to Explore Cooperation On Pharmaceutical Industry

Posted on by Hui Zhang

by Hui Zhang

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.

 

(zhanghui36@jd.com)

JD and Beijing Truelore Help Renmin University Build Smart Procurement Platform

Posted on by Rachel Liu

by Rachel Liu

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.

 

(liuchang61@jd.com)

JD Launches First Three Smart Offline Stores for Industrial Products in Suzhou

Posted on by Ling Cao

by Ling Cao

JD has launched first three smart offline stores for industrial products in Suzhou, Jiangsu province, on November 23rd. The new model aims to help existing traditional industrial products stores go digital via smart management solutions and increase efficiency.

The launching ceremony for the JD industrial products store in Changshu, Suzhou

Industrial products stores are unique in terms of number of stock keeping units (SKUs), a high number of nonstandard items, as well as the need for professional after-sales services, all of which provide challenges for store management.

To address these problems, JD Industrial Technology has integrated resources and provided in-store digital solutions such as cloud based shelves and digital price tags. In addition, JD supports omnichannel delivery services. JD’s Jing Gong Bang  (京工帮, which literally means JD Industry Helper) can connect big companies with industry-leading service providers for manufacturing-level omnichannel service solutions.

JD also leverages smart in-store management systems to help store owners realize digitalized management through procurement, sales and accounting support. One of the stores is 200 square meters and operates over 10,000 SKUs hitting the upper limit of its manpower. By installing the smart system, the store managed ten times SKUs, and efficiency has greatly improved.

Cheng Liu, general manager of a company in Suzhou which owns the store said, “The pressure is obvious for Suzhou’s industrial products stores to make a digital transformation.” He explained that GDP for industrial products in Suzhou reached over RMB 1 trillion yuan, the highest among cities in the area.” Whether to make digital transformation is a key for local companies.

Zhuang Han, general manager for smart retailing at JD Industrial Technology said, “JD’s solutions can not only help traditional stores digitalize their business, but also integrate resources in the market, providing more valuable services for enterprise clients.”

He added that JD will continue to build up infrastructure and connectivity across all processes via digital solutions, creating an efficient industrial chain for all clients.

 

(ling.cao@jd.com)

JD Courier Honored as National Model Worker

Posted on by Kelly Dawson

by Kelly Dawson

Among a group of model workers awarded across China by the Chinese government in this year’s National Model Workers and Advanced Workers awards announced on Nov. 24th is a humble courier from Chifeng, Inner Mongolia named Song Xuewen. Since joining JD in 2011, he has covered 320,000 kilometers and delivered 300,000 packages—with zero errors, zero complaints, and zero safety incidents.

Today, Song, aged 38, heads one of 21 delivery stations in Beijing’s Zhongguancun neighborhood, managing 17 couriers who just like him, are a part of China’s courier work force of more than 4 million workers, who all together now handle an annual parcel volume of 74 billion across China.

Today, Song, aged 38, heads one of 21 delivery stations in Beijing’s Zhongguancun neighborhood

Song is soft-spoken but decisive. Each morning he assesses the massive haul of packages that will be delivered across Zhongguancun, first piling the goods according to size, largest at the bottom and smallest at the top—but what looks like a straightforward process is anything but simple. As “Beijing’s Silicon Valley”, Zhongguancun is home to about 20,000 companies. Song knows each and every company in his area—their location, what time their offices close, their package delivery preferences and most frequent purchases, and even the names of some employees.

It is precisely this meticulous attention to detail that has netted Song multiple awards over the years: In 2017, he won the National May Day Medal awarded by the National Union, , and in 2018, he won third place in a national competition for “most beautiful courier”, an award for beauty in character and diligence.

“The most important thing in this role is to be attentive,” Song said in an interview at JD’s headquarters in Beijing. “You have to pay attention to customers, and observe your fellow couriers to see what they do well, and learn the correct process.”

On any given day, JD couriers might encounter a range of challenges that go far beyond the normal work scope one might expect from a courier, he said. As JD couriers are assigned to work in one designated area, they often form bonds with their regular customers. In the past year alone, JD couriers have unexpectedly helped put out a fire, assisted an elderly customer in ordering ingredients and then making moon cakes, and more. It’s common for JD couriers to assist elderly or handicapped people with various tasks, Song said.

“I think that among couriers, JD couriers have a higher responsibility,” he said. “Being a courier is not always simple. Our work plays a role in society. As a part of society, we all have a natural responsibility, but as a courier, there’s an additional layer of responsibility we feel.”

Indeed, the role of couriers during the pandemic earlier this year has been well recognized, hailed as a “lifeline” during a time when most of China’s population remained indoors. China’s couriers were also recognized last year, when Song himself was invited to participate in the National Day parade.

“It was very exciting and a big honor,” Song said of the parade. “Maybe sometimes we think of the job of being a courier as mundane or easy work, to transport packages daily. So to be recognized by society and our country, it felt like our hard work had paid off. Additionally, to be able to represent couriers in the National Day parade and receive this honor, I think it was a recognition that our role in society and the services we provide are significant.”

 

(kellydawson@jd.com)

CEO of JD Logistics Awarded One of Top 10 Logistics Leaders of China

Posted on by Yuchuan Wang

by Yuchuan Wang

Zhenhui Wang, CEO of JD Logistics (JDL), was awarded as one of China’s Top 10 Logistics Leaders in 2020 during the 18th China Logistics Entrepreneurs Annual Conference held on November 21st. JDL was also awarded as the Advanced Enterprise in Fighting against COVID-19.

The global logistics and supply chain has encountered unprecedented challenges due to the impact of COVID-19. According to the organizer of the annual conference, there have been a number of entrepreneurs and enterprises that helped lead the industry’s recovery and development during the pandemic.

Certificate of China’s Top 10 Logistics Leaders 2020

Under Wang’s leadership, over 200,000 employees at JDL stayed on duty at the peak of the pandemic and transported over 70 million medical supplies to the frontlines of the fight against the virus. JDL has also been continuously delivering daily necessities to consumers across China, all based on the company’s agile and enormous logistics and supply chain network.

In a previous interview with China’s national TV, CCTV, Wang said, “Logistics cannot be suspended for a single minute during the pandemic. It is not an issue of whether to make money, but a matter of social responsibility.”

According to JD.com’s Q3 2020 earnings, by September 30th, JDL operated over 800 warehouses, which covered an aggregate gross floor area of approximately 20 million square meters.

 

(yuchuan.wang@jd.com)