What is Global Smart Supply Chain?

Posted on by Ling Cao

Global commerce is undergoing one of the biggest evolutions we have ever seen—one driven by technology. We are making and moving products at unprecedented speeds, straining traditional supply chains built for a slower pace in a different, more predictable world.

At JD.com, China’s largest retailer, online or offline, we sit in between the ever-more demanding consumer and the companies that produce the products and services that matter to them most. We believe the only way to keep up with such monumental changes is to rethink our supply chains, and build them to be smarter, more interconnected, more flexible and more global.

JD, which serves over 300 million customers, is a technology company at its core and accomplishes this for our own e-commerce business through a wide range of innovative planning, advanced technologies, partnerships and integrated solutions.

Collectively we call it Global Smart Supply Chain, or GSSC, and believe we can apply it to more scenarios in the future. We want to build out the future of commerce by helping other companies and industries discover more efficiencies.

Together with our partners, we believe technology and GSSC principles can reduce logistics costs to just a fraction of what they are today, across all industries.  As we expand our international logistics network, we want to connect the world by achieving two-day shipping from China to other countries, and vice versa. We also want to achieve 48-hour local delivery in several regions around the world.

At this year’s GSSC summit, held last week in Beijing, we were excited to unveil some of our latest initiatives which are only a few examples of the amazing things a company can accomplish when taking this approach to supply chains. We’ve greatly expanded our programs to offer fulfillment and transportation solutions to shippers including Unilever and Mead Johnson. We now offer a cloud-based warehouse management solution that can be used for warehouses of any size or level of development, so other retailers, vendors and logistics companies can easily upgrade their facilities, better manage inventory, and maximize use of their warehouse space.

We’ve become the first-ever retailer, online or offline, to launch a parcel delivery service serving residential and business addresses. JD operates China’s most advanced and far-reaching in-house logistics network and, thanks to proprietary supply chain management technology, is capable of delivering over 90% of JD.com orders on the same or next day. In the future, we want to deliver parcels to millions of families in China with the safest, most convenient and wide ranging service possible. We do scheduled deliveries and luxury white glove deliveries for our e-commerce customers. It was a natural next step for us to open this infrastructure and technology to other shippers.

We also announced a brand new research facility, through which we are engaging in top level design of logistics networks for smart cities. This includes our exploration of underground logistics systems, which will reduce pollution and congestion, while providing a logistics service that is smooth and efficient with minimal disruption to daily life.

And last, but definitely not least, we continued the expansion of our Green Stream Initiative to make our supply chain more eco-friendly. We’ve designed reusable packaging, which consumers can opt into in exchange for coupons and rewards. If just 10% of orders use the new packaging, we estimate JD can save 32.5 billion RMB a year, another example of how working for a better planet can also benefit the bottom line.

A decade ago, few would have thought that a retailer, much less an online retailer, could provide the backbone for the future of commerce. The retail business was traditionally about buying and selling products, and its supply chain was simply a cost center that needed to be controlled. But under the principles of GSSC, JD.com sees its supply chain as a core asset, not only for business, but for the overall modernization and improvement of society.

JD.com Partners with Top Watch Retailer Xinyu Group

Posted on by Rachel Liu

JD.com, China’s largest retailer, has formed a strategic partnership with international watch retailer, Xinyu Group, to give Chinese consumers a new way to experience and purchase the world’s best timepieces.

The companies will cooperate on product sales, after-sales service and business development, including special “Boundaryless Retail” shopping experiences designed for JD’s over 300 million customers.

Under the partnership, master watchmakers from Xinyu will work directly at JD’s warehouses in regions such as Beijing, Shanghai, Guangzhou and Chengdu to provide premium after-sales service for JD customers. The program will enable faster in-house watch repair and maintenance for consumers, reducing average handling time by weeks so customers can have their watches returned as quickly as possible. JD has already cooperated with 60 of Xinyu’s offline stores to provide after-sales service, with the goal of expanding the cooperation to more stores in the future.

“We are honored to join forces with Xinyu Group and bring more of their leading global watch brands to China’s style-conscious consumers,” said Belinda Chen, General Manager of JD Watch. “The partnership further builds out JD’s vision of “Boundaryless Retail” – the idea that consumers should be able to buy whatever they want, wherever and whenever they want it. We are particularly excited about the unmatched after-sales service being provided to customers through our cooperation with Xinyu.”

“Xinyu’s international watch brands have been warmly received by Chinese consumers,” said Yu Ping Cheung, Chairman of Xinyu Group. “With a unique ability to offer innovative combinations of online and offline shopping experiences, JD.com is the perfect partner for us to provide even more of our exceptional timepieces across China. We look forward to continuing deepening our cooperation with them in the years to come.”

JD.com Launches New Reusable Package Initiative

Posted on by Ling Cao

JD.com is expanding its eco-friendly packaging program to include customers, part of the company’s ongoing efforts to promote sustainable consumption.

Under the new program, JD.com’s customers can have thousands of products delivered in reusable packaging for small and medium-sized parcels, making e-commerce more environmentally friendly and reducing costs.

JD estimates the program can save 32.5 million RMB per year if 10% of orders use the new packaging.

Offered for free, the service allows JD’s customers to easily select whether they want to use reusable packaging on the billing page. Those opting to do so will return the packaging – a “green box” that can be used approximately 10 times – to delivery personnel after receiving their order. Customers who choose the packaging are rewarded with JD’s “Jingdou” loyalty points, which can be exchanged for products on JD.com. All small and medium-sized parcels can use the recycled packaging, including jewelry, cellphones, watches, makeup and skincare products, with the exception of fresh food.

The service, which kicked off in Beijing, Shanghai, Guangzhou and Shenzhen, will expand to Chengdu and five other cities by the end of this month. By the end of 2018, JD will provide recycled packaging as an option in 20 cities.

“JD.com is always exploring ways to reduce e-commerce waste through green logistics,” said Bing Fu, Head of Planning and Development, JD Logistics. “By using this green packaging, and taking part in our other innovative recycling programs, JD’s customers can enjoy the convenience of e-commerce while knowing that their purchases have involved minimal carbon emissions.”

JD has long been dedicated to taking a green approach to logistics across industries. Last year, JD Logistics unveiled the Green Stream Initiative, JD’s largest environmental project, to promote the use of sustainable packaging materials and reduce the environmental impact of the entire supply chain. By deploying green boxes, JD expects to reduce the number of boxes used throughout the supply chain by 10 billion by 2020. The company has also set the target for 80% of packaging materials to be recyclable, over 50% of plastic packages to be replaced by biodegradable material, and 100% of logistics packaging to be composed of recyclable or reusable materials.

Meanwhile, JD introduced a fleet of hydrogen energy delivery trucks to greater Shanghai earlier this year, marking the first significant commercial deployment of hydrogen-powered vehicles for logistics in China as well as the latest expansion of JD’s goal to make the ‘last mile’ of the distribution process carbon-free. In early June, the company unveiled a fleet of 50 solar-powered delivery vehicles in Beijing.

Gieves & Hawkes Opens Official Flagship Store on JD.com

Posted on by Rachel Liu

Renowned British bespoke menswear brand Gieves & Hawkes has become the fourth brand from the Ruyi-owned Trinity Group to open an official flagship store on JD.com.

Headquartered at No. 1 Savile Row, Gieves & Hawkes is iconic in the world of men’s tailoring, having dressed royalty from George V to Prince William. The brand’s debut on JD.com allows Chinese consumers access to the brand’s high level of service and detail with convenience that can only be provided by JD’s nationwide logistics network and luxury delivery service.

Gieves & Hawkes has become the fourth brand from the Ruyi-owned Trinity Group to open an official flagship store on JD.com.Gieves & Hawkes is a member company of Ruyi’s Trinity Group, a leading menswear group based in Hong Kong. JD recently entered into a wide-ranging strategic agreement with Ruyi, which included a series of initiatives in fashion tech and joint sponsorship of the BFC/GQ Designer Menswear Fund.

“We are delighted to welcome Gieves & Hawkes to the growing family of leading international brands partnering with JD to address the growing market for luxury goods in China,” said Victor Hu, President of JD Fashion and Lifestyle. “Trinity’s collection of brands is consistently excellent in quality, and the opening of the Gieves & Hawkes flagship store is sure to be a hit with JD’s discerning users.”

Other Trinity brands that have joined JD include D’URBAN, an elegant Japanese men’s business and leisurewear brand; Cerruti 1881, a chic Italian men’s style label; and Kent & Curwen, a quintessentially British menswear brand in partnership with David Beckham. JD and Trinity Group will celebrate their partnership with a “Trinity Group Brand Day” on Oct. 19, featuring offline promotional events and online discounts for Trinity brands on JD.com.

“JD.com’s dedication to providing superior service and authentic, luxury goods to its customers makes it the perfect partner,”

“JD.com’s dedication to providing superior service and authentic, luxury goods to its customers makes it the perfect partner,” said Aubrey Wong, Senior Vice President of Retail (China) at Trinity Group. “There is incredible history behind the Gieves & Hawkes brand, and the unique opportunity to reflect this in the design of our online presence in China is very exciting.”

“A timeless brand, the exquisite nature of Gieves & Hawkes’ tailoring and men’s garments represents a drive for quality that is shared by both Ruyi and JD.com,” said Qiang Cui, Vice President of Ruyi International Group. “JD’s experience in marketing international brands to China’s most stylish consumers makes it the perfect partner in Ruyi’s mission to cement our place as a world-leading fashion group with the most recognizable brands.”

JD.com Launches New Institute for Smart Logistics in Urban Areas

Posted on by Yuchuan Wang

JD.com is launching a new research center in Xiongan, China, dedicated to developing futuristic automation technology for urban logistics in smart cities in China.

Announced at JD Logistics’ 2018 Global Smart Supply Chain Summit in Beijing on October 18, the Urban Smart Logistics Institute will focus on planning for urban logistics hubs, top-level design for urban logistics systems, big data and cloud computing platforms for logistics and more. Founding members of the institute include Nankai University, the Institute of Comprehensive Transportation at the National Development and Reform Commission, Beijing Jiaotong University, Beijing Wuzi University, Shanghai Maritime University, Sinotrans & CSC and Shanghai Municipal Engineering Design Institute.

Research shows that freight vehicles have an outsized contribution to urban traffic emissions, and can take up as much as a third of road capacity. With urbanization in China causing intense changes to the environment, creating pollution and causing other disruption to people’s lives, the primary goal of the institute is to design the framework for logistics in urban spaces to be more efficient and environmentally friendly.

The institute will look first at underground logistics systems, making use of subterranean tracks and integrated municipal pipe corridors. This can help preserve open, convenient and aesthetically pleasing aboveground space that would otherwise be occupied by traditional logistics systems, ensuring smooth and efficient urban logistics with minimal disruption to daily life.

JD.com is launching a new research center in Xiongan, China,

“The most effective smart cities are the ones that make best use of all available space and resources,” said Director of the Chinese Academy of Engineering Chen Xiangsheng at the Institute’s launch event during the 2018 Global Smart Supply Chain Summit in Beijing. “The use of underground space to build three-dimensional smart logistics system is an industry game-changer. It will alleviate traffic problems, environmental problems, and save urban space.”

JD.com, China’s largest retailer, is the only large-scale e-commerce company in the world to operate a nationwide in-house logistics network that can deliver to customers’ doorsteps. The company operates the world’s first fully-automated fulfillment center, and is the first e-commerce company to commercially launch drone deliveries. A leader in smart logistics and automation, the company believes there are many potential benefits to be explored in new propulsion technologies, which promise higher speed, faster acceleration and lower energy usage, at lower operating costs.

“As China’s cities are developing faster and becoming more sophisticated, sustainable urban development is critical. Smart logistics ensures that space in cities is being used in the most efficient and least disruptive way possible,” said Zhenhui Wang, CEO of JD Logistics. “We are committed to revolutionizing global commerce, and society more broadly, and it is an honor for us to join together with other leading ecosystem players to establish the Urban Smart Logistics Institute.”

E-Commerce Giant JD.com Enters Parcel Delivery Business

Posted on by Rachel Liu

JD.com, China’s largest retailer, is opening its leading logistics network up to consumers to send parcels around the country, marking the first entry by an e-commerce company into the parcel delivery business.

JD’s new parcel delivery service enables users of the company’s app in Beijing, Shanghai and Guangzhou to send items intracity and throughout mainland China, using the same fast and reliable delivery service they get when making purchases. The company, which will expand the program to include high value items like luxury products and high-end consumer electronics, as well as more diverse options based on delivery timing, aims to eventually make residential and business deliveries for shippers from anywhere to anywhere within mainland China in the future.

JD is the only large-scale e-commerce company in the world to operate a nationwide in-house logistics network, down to the last mile. The network, powered by the company’s proprietary supply chain management technology, is able to deliver over 90% of orders same- or next-day, and reaches 99% of China’s population.

The new delivery service includes a range of competitively priced options, including same-day delivery between different cities; same-day intracity delivery; standard next-day or two-day delivery and next-day delivery between cities. All packages are dispatched using JD’s network of delivery staff and make full use of JD’s logistics advantages. Depending on the delivery option chosen, packages may be sent by high-speed rail or air. Individual shippers can use the same JD app they use for shopping to schedule a pickup by one of JD’s full-time logistics staff, and have a parcel delivered thousands of miles away at the speed they choose. They will even be able to select JD’s luxury ‘white glove’ delivery service if they want to make the delivery extra special.

“We are very excited to launch our new delivery service,” said Zhenhui Wang, CEO of JD Logistics. “This marks the next step in leveraging the nationwide logistics network that JD has built over the past decade, to expand the range of services available to our users. JD.com is known throughout China for the fastest and most reliable delivery, and we are confident that users will appreciate the convenience of this new service.”

The program has already begun user trials with multiple ways for customers to request pickups. In addition to the JD.com app, shippers can request pickups on a JD Delivery mini program in WeChat, China’s largest social network operated by JD’s partner Tencent, and a JD “Delivery Team” WeChat account.

The move is the latest step in JD’s strategy to open its technology and infrastructure up to other shippers, businesses and industries—something the company calls “Retail as a Service,” or RaaS. As a part of that, JD hopes to revolutionize global commerce by connecting the world with its Global Smart Supply Chain. Based on the company’s data, the new service will be most in demand by urban professionals who need fast and reliable delivery, including people in the high tech, business and communications fields. In a recent survey, 74% of respondents expressed a desire for high-quality, same-day, intracity delivery service.

JD unveiled the parcel delivery service at its 2018 Global Smart Supply Chain Summit held in Beijing on October 18. Other groundbreaking initiatives announced at the Summit – part of JD’s Global Smart Supply Chain Network Strategy – included JD’s smart warehouse management system initiative, an expansion of the company’s green initiatives, and the formation of a new energy union with 20 industry partners.

Follow JD.com on Twitter to stay up to date on all JD news.

Superdry’s Flagship Store Launches on JD.com

Posted on by Rachel Liu

Iconic British brand Superdry is expanding its presence in China with the opening of an official flagship store on JD.com, China’s largest retailer.

Already enjoying wide popularity in China and among JD’s quality-conscious customers, Superdry is now offering a wide range of products on JD.com, including apparel, accessories and footwear, reaching over 300 million consumers. To kick off the new Autumn-Winter season, Superdry has launched a brand campaign called #Super Zao# to celebrate the power of millennials and encourage young people to express their individuality without restrictions. A special micro-film for the #Super Zao# campaign featuring Chinese actor and singer Timmy Xu, Superdry’s brand ambassador, has already gone viral. JD and Superdry have also joined forces to launch a JD Super Fans Day which offers a highly unique brand experience for Chinese fans on JD.com through a combination of online and offline activities.

“JD.com is one of the world’s most innovative retailers, providing a customizable, best-in-class experience that is shaping the future of shopping. We’re excited to be working with them to create a unique, interactive experience for shoppers to discover the exciting world of our brand,” said Eric Hu, General Manager of Superdry China.

“Fusing iconic vintage Americana and high-impact Asian graphic imagery with a British twist, Superdry is a global digital brand designed for attitude not age. Our products, like our customers, are not one-dimensional. Each piece allows you to wear it in your own way and tell your own story.”

“We are honored to welcome the globally recognized Superdry brand to JD.com,” said Victor Hu, President of JD Fashion and Lifestyle. “Superdry is devoted to creating amazing clothes for people through its obsession with design, quality, and fit, and its commitment to relentless innovation. These values resonate powerfully with Chinese consumers, especially young JD customers, and we’re thrilled that the brand is now just a few clicks away from hundreds of millions of people in China.”

With Superdry as the latest international fashion brand to join JD.com, the two sides are working to bring a superior shopping experience to Chinese consumers, especially millennials, by leveraging their joint resources and marketing initiatives. Sportswear, streetwear and menswear fashion brands have proven enormously popular on JD.com, with international brands including Boy London and Harley-Davidson joining JD this month. JD launched its menswear festival on September 25, during which sales doubled from the same day last year, with Calvin Klein, HAZZYS, Lacoste, Levi’s, and Tommy Hilfiger performing particularly well. On September 11, JD kicked off a Super Category Day for sports products that showcased the surging interest among Chinese consumers for athletic goods. Sales for the category that day exceeded 10 million Chinese yuan in the first 2.5 minutes of the promotion. Sales for the category over the entire day increased 600% as compared with a similar promotion last September.

JD.com Collects Old Clothes From All Over China to Raise Environmental Awareness

Posted on by Hui Zhang

JD.com, China’s largest retailer, the World Wide Fund for Nature (WWF) and The China Children and Teenagers’ Fund (CCTF) are partnering to launch a second annual Green Planet-Sustainable Week, raising awareness about sustainable consumption in the world’s most populous nation.

The seven-day program, which kicks off Oct. 10, will reinforce JD’s commitment to help the retail industry develop more sustainably, reducing the impact of China’s booming consumption on the environment.

For the event, JD (also known as Jingdong) will promote pollution reduction through the use of reusable shopping bags, created from the fabric of discarded apparel in response to a call from WWF to reduce pollution caused by plastics. The bags, which are also regularly used in JD operations, will be distributed free during the event and include RFID Chips that can be scanned as coupons in offline stores through JD’s partners.

 

JD’s Green Planet-Sustainable Week also kicks off a new clothing drive for the company’s recycling program. Taking advantage of its nationwide in-house logistics network, which covers 99% of China’s population, JD will collect both used and unused clothing from customers either to be sent to recycling facilities or distributed to those in need. Proceeds will be donated to lower-income families, people with disabilities and charity groups. Last year, a similar drive led to the collection of nearly 400,000 items, or 20 tons, of clothing, from 150 million people in four cities. This year’s program will expand to cover 47 cities.

 

Customers will be able to trade in major appliances for recycling as well, by third-party companies through JD’s platform. The appliances will be disassembled, after which parts will be used for repairs, helping to reduce the waste generated by household appliances as well as pollution created by their production. Working with JD’s charity affiliate, JD Foundation, the participating companies will donate a portion of any proceeds to support charitable activities on behalf of customers, while customers are eligible for payment for their used devices, plus coupons from JD in exchange for the trade-ins.

Meanwhile, all logistics information for tracing donations and trade-ins are available through JD.com’s proprietary supply chain management technology.

“The spectacular rise of Chinese consumption has been a major force behind the country’s incredible economic story but has also contributed to unprecedented environmental challenges,” said Zhonghao Jin, Head of Market Practice, WWF China.

“By actively encouraging its over 300 million customers to recycle and reduce waste, JD.com is admirably leading the transition towards a sustainable future for China and the world. WWF is honored to partner with them. I believe this week’s activities will help raise consumer awareness and accelerate the mainstreaming of sustainable consumption.”

“As the largest retailer both online and offline in China, JD.com holds a special responsibility to use our influence and infrastructure to mitigate the environmental impact of consumption,” said Libo Ma, head of the CSR department at JD.com, who is also general secretary of the company’s charity affiliate, JD Foundation. Beyond Green Planet-Sustainable Week, the company is in the midst of an effort to convert its entire vehicle fleet to new energy vehicles, and other efforts to reduce emissions, and is developing biodegradable packaging to further reduce waste in the supply chain. “Together with the WWF and CCTF, we are excited to expand our environmental protection efforts, and to leverage our pooled resources to help benefit some of the most underprivileged groups in society.”