JD Industrial Supply and Shandong Gold Group Partner to Optimize Supply Chain Costs

Posted on by Doris Liu

by Doris Liu

JD Industrial Supply signed a cooperation agreement with Shandong Gold Group on March 31, aiming to provide digital and intelligent services to optimize the comprehensive costs of the entire supply chain for the mining company.

Since last year, JD Industrial Supply, JD’s MRO business providing industrial products and services, and Shandong Gold Group, the parent company of Hong Kong-listed Shandong Gold Mining, have engaged in an in-depth discussion on the overall solution aiming for digital transformation of the supply chain from management of commodity, procurement, inventory to fulfillment and delivery.

As one of China’s biggest gold producers, Shandong Gold Group owns a number of mines and smelters, which are generally located in remote areas of the country such as Qinghai, Hainan and Inner Mongolia, where transportation is routinely challenging.

In the supply chain management, commodity’s price cost is only one of the many factors, and costs of service and maintenance in sourcing, transportation, warehousing and management must all be considered to achieve the best comprehensive cost of the supply chain, according to an executive at Shandong Gold Group.

During the pilot project, JD Industrial Supply managed to reduce the comprehensive cost by 22 percent by increasing the rate of on-time delivery dramatically. It will further help Shandong Gold Group utilize the on-hand and future inventory of manufacturers, third-party suppliers and local service providers by using the standard commodity library called “Mercator”, which was built by JD Industrial Supply to promote the standardization of material management.

Based on JD Industrial Supply’s intelligent decision-making system of supply chain, Shandong Gold Group can realize the best value delivery in the future with lower logistics and warehousing costs to achieve its goal of pioneering the digital transformation of gold mining industry in other countries.

 

(liujun215@jd.com)

JD Service Plus Builds All-in-One Supply Chain Solutions for EV Charging Pools

Posted on by Mengyang He

by Mengyang He

As a one-stop service platform of JD Logistics, JD Service Plus has been expanding its footprint in the electric vehicle (EV) industry with a focus on building all-in-one supply chain solutions for charging pools.

As of now, JD Service Plus has partnered with leading EV manufacturers, such as Tesla, Volkswagen, Audi, XPeng, Voyah, Aiways for charging poll services. In the process, JD Service Plus increased the regional installation efficiency by 15 percent and received a satisfaction rate of 98 percent.

With the fast growth of the EV industry across the world, the demand for charging pools, which are the infrastructure for using electric vehicles, has soared significantly.

A JD Service Plus engineer is installing a charging pool

Through its first party and locally based network, JD Service Plus has been therefore providing its partners with all-in-one supply chain solutions including the storage, delivery, installation, and after-sales services of EV charging pools.

Easing fossil fuel usage, reducing carbon emission, and improving air quality—the potential of the EV industry is speaks for itself. According to the Ministry of Public Security of China, the ownership of electric vehicle reached 7.84 million by the end of 2021, and the ownership of charging infrastructure was 2.61 million, as in three vehicles per charging pool.

 

(hemengyang5@jd.com)

JD Deploys Omni-Channel Efforts in Shanghai COVID Lockdown

Posted on by Vivian Yang

Vivian Yang

JD.com is mobilizing both online and offline resources to ensure stable supplies of fresh produce and life necessities amid the COVID lockdown in Shanghai that is planned for nine days from March 28th to April 5th.

Fresh food:

JD’s omni-channel supermarket SEVEN FRESH formed rapid collaboration with major vegetable and breeding bases and factories across the country to transport supplies, such as fruits, vegetables, rice, flours, cooking oil, milk, frozen food and other life necessities to stores in Shanghai. So far the supply to affected areas has been doubled and even tripled than the normal amount to meet the local demand surge.

In the meantime, a number of virus prevention and disinfection measures are strictly followed throughout the preparation of fresh produce in the supermarkets from sorting, cleaning, cutting, packaging to labeling. All staff are required to have a “green health code” to work in the stores or deliver orders to neighborhoods. Imported cold-chain products are sampled for nucleic acid tests and receipts are kept for traceability.

A SEVEN FRESH store in Shanghai

Telemedicine:

JD Health launched free online health consultation services for residents in lockdown areas. Doctors from several departments, including respiratory medicine, gastroenterology, pediatrics, gynecology, psychiatry and more, joined the voluntary activity to provide the public with health guidance and psychological support via the internet.

JD Pharmacy has prepared sufficient stock of medicines, disinfection products and other healthcare supplies and ensure their delivery in a timely manner.

On-demand delivery:

To ensure online orders of people in lockdown areas can be fulfilled with no delay, JD’s local on-demand retail services including JD Daojia (JDDJ) and Shop Now prioritized supplies and delivery manpower. Currently, the majority of supermarkets, fruit shops, vegetable markets, drug stores, and other retailers are maintaining normal online operations on JDDJ to serve local residents.

Dada Now, the on-demand delivery platform of Dada Group of which JD.com is a majority shareholder, summoned couriers around Shanghai to ensure enough delivery capabilities in the downtown area while the company provides considerable personal care measures and subsidies to incentivize and safeguard the frontline workers. Couriers are equipped with Dada’s smart logistics system to follow algorithm-guided delivery routes with parcels prepared directly from warehouses and orders of the same destinations combined to enhance fulfillment efficiency.

Donations:

As soon as the lockdown started, JD Fresh and JD Logistics have donated 68,000 items of fresh milk, fruits, vegetables, meat products and more to meet the immediate demand spike.

Dada Group sent 400 boxes of disinfectants and 80 boxes of antimicrobial spray and other virus prevention materials to the Shanghai Red Cross to be used for the re-opening of schools.

(vivian.yang@jd.com)

Posted in ESG

JD.com Utilizes Robots in Shanghai for Contactless Delivery

Posted on by Yuchuan Wang

by Yuchuan Wang

As the current COVID-19 outbreak in Shanghai grows, JD Logistics has launched its autonomous delivery robots in the city’s Pudong New Area to provide contactless last mile delivery for certain locked down neighborhoods.

The robot applied in Shanghai can load up to 100 kilograms of goods and drive 80 kilograms per charge. With AI technology and multiple sensors, the robot can recognize, avoid obstacles, and plan its route to the destination.

Since 2020, JD has deployed its autonomous delivery vehicles for COVID-19 relief in Wuhan, Shijiazhuang, Guangzhou, Beijing, Tianjin, Shenzhen and now Shanghai. In Wuhan, the robots traveled over 6,800 kilometers and delivered more than 13,000 packages during the peak of the pandemic in early 2020. “Big White”, one of the robots used in Wuhan, is now a permanent collection of the National Museum of China in Beijing.

JD.com debuted its first autonomous delivery vehicle in 2016 and revealed the Level-4 autonomous driving robot in 2019, becoming the world’s first company to apply Level-4 autonomous driving technology on public roads without any human interaction.

So far, the company has applied nearly 400 autonomous delivery vehicles in more than 25 cities in China, meeting the delivery needs in scenarios such as residential compounds, commercial centers, business parks, hotels, university campuses, supermarkets and more.

 

(yuchuan.wang@jd.com)

Six-Year Journey of JD.ID: Annual Compound Growth Rate Doubles the Industry Average

Posted on by Yuchuan Wang

by Yuchuan Wang

March 28, 2022 marks the sixth anniversary of JD.ID, JD.com’s e-commerce business in Indonesia. In the past years, JD.ID’s annual compound growth rate has been twice the industry’s average and has become one of the major e-commerce companies locally, with a distribution network covering 90% of provinces in Indonesia.

Since its establishment, JD.ID has focused on building an integrated e-commerce infrastructure. With 18 warehouses nationwide, the company’s warehousing area has surpassed 100 thousand square meters. Thousands of couriers serve more than 500 cities, spanning across all the major islands of the country. As of now, over 85% of orders on JD.ID can be fulfilled within 24 hours. JD.ID also signed a partnership with Indonesia’s national post company PT Pos Indonesia in 2021 to cooperate in express delivery, logistics, payment and more. The partnership is expected to provider better logistics service to customers nationwide.

While e-commerce is growing, the offline market remains the current major shopping choice of Indonesia consumers. In this context, JD.ID introduced an omni-channel shopping model by launching seven self-owned offline stores in greater Jakarta area, offering a variety of products including electronics, appliances, home products and more. Consumers can choose to purchase in the store or have their products delivered to their doorstep.

JD.ID has also opened up its omni-channel technology and abilities to third party businesses. Trikomsel, one of the largest mobile phone retailers in Indonesia, has brought over 100 stores online on JD.ID’s Nearby Channel, connecting to the fast growing online traffic. So far, revenues generated from JD Nearby has accounted for over 60% of Trikomsel’s total revenue.

Stepping into the seventh year, JD.ID will continue to provide authentic products and premium services to Indonesian customers and keep contributing to the local economy by helping SMEs and local people.

 

(yuchuan.wang@jd.com)

JD Sales Data Show Stronger Consumer Demand for Wearable Devices

Posted on by Doris Liu

by Doris Liu

The turnover of smart wristbands increased five times year-on-year (YOY) during the JD Computer and Digital Super Category Day in February. Also, Huawei Watch GT 2 Pro ECG saw sales increase by five times month-on-month four hours after the start of a promotional event in March on JD.com, indicating strong consumer demand for wearable devices in China.

A recent report from International Data Corporation (IDC), a leading consulting firm, showed that China’s wearable devices market reached 37.53 million units in Q4 2021 and nearly 140 million units in the whole year of 2021, up 23.9 and 25.4 percent YOY respectively.

In 2021, hearables sustained consistent growth with sales of 78.98 million units, up 55.4 percent YOY. The shipments of watches were 39.56 million units, up 21.4 percent YOY, in which adult watches accounted for 20.13 million units with a 31-percent increase YOY. The category of children’s watches saw an increase of 12.8 percent YOY with shipment volume reaching 19.43 million units. Meanwhile, the wristbands declined by 26.3 percent YOY, influenced by weaker market demand and price increases.

According to IDC, wearable device shipments are expected to exceed 160 million units in 2022, with an annual growth rate of 18.5 percent in China.

The strengthening of public awareness in the health sector has stimulated the demand for wearable devices. In addition, through years of cooperation with Huawei, Xiaomi, OPPO and other brands, JD has enhanced the sales by multiple methods such as the C2M (Consumer-to-manufacturer) model, one-hour delivery service and omni-channel solutions that optimize both online and offline shopping experiences.

 

(liujun215@jd.com)

JD Health Releases 2021 Annual Results

Posted on by Vivian Yang

by Vivian Yang

JD Health released its 2021 financial year annual results on March 28th, the company’s second full-year earnings release after its listing on Hong Kong Stock Exchange (6618.HK) on Dec. 8, 2020. The company announced net revenue of RMB 30.68 billion yuan, an increase of 58.3% year on year. Profit (on a non-IFRS basis) was RMB 1.4 billion yuan, up by 91.5% YoY.

JD Health’s business maintained strong growth momentum in 2021, driven by a growing user base and improvements to the user experience.  On Dec. 21, 2021, annual active user accounts reached 123 million, representing a net addition of over 33.56 million from the 12-month period ended December 31, 2020. Additionally, its online medical consultation service grew rapidly, with its daily average consultations exceeding 190,000.

In his letter to shareholders, JD Health CEO Enlin Jin wrote that “over the past year, under the guidance of the relevant policies and regulations, and adhering to long-term value, JD Health consistently enhanced its capabilities by opening its ‘retail pharmacy + healthcare service’ ecosystem, helping the upstream, midstream and downstream entities in the industry in their digital transformation, and thus providing quality healthcare services to a wider group of people.”

In addition, “by offering professional supply chain and technology solutions, we served a growing number of local government departments and medical institutions, which accelerated the digital transformation of the healthcare industry and promoted the deeper integration and development of China’s digital and real economy,” Jin noted.

With the business philosophy of “based on trust and focusing on customer’s health”, JD Health is committed to improving inclusive healthcare for Chinese people at large while creating long-term and sustainable value for shareholders and the society.

According to the release, as of the end of 2021 JD Health has been leveraging 19 medicine warehouses and over 400 non-medicine warehouses across the country to realize next-day delivery of more than 80% of its self-operated medicines, and JD Pharmacy is able to deliver cold-chain pharmaceutical products in over 200 cities in China through its proprietary cold-chain logistics network.

JD Health continued to deepen collaborations with leading pharmaceutical companies such as Sanofi China, UCB China, Novartis and more, and became their first choice to release new medicines for online sales as well as a preferred partner to explore digital marketing innovations.

On the development of JD Health’s internet hospital, more than 45,000 doctors with the level of deputy chief physicians (second highest of medical professional title in China) and above have joined JD Health, and together collectively handled a daily average of more than 190,000 online consultations last year. Meanwhile, nine specialized medical centers for infection and liver diseases, brain nutrition, skin repair and more were established, bringing the overall number of specialized medical centers to 27 under JD Health’s internet hospital.

The “Family Doctor” telemedicine program continues to consolidate medical services and products’ resources and provide more diversified service scenarios to users, such as online video or audio consultations that support multiple users’ same time chat, service provision to grassroots communities and more.

In the past year, JD Health’s Rare Diseases Care Project and Fund have helped more than 24,000 patients acquire medications and healthcare services. And the company went full-force for the anti-COVID fight in different regions in China and natural disaster relief such as the flood in Henan province by donating medical supplies and offering voluntary health consultation services both online and offline.

Read the full report of JD Health’s annual results 2021 here.

(vivian.yang@jd.com)

JD Health to Promote Chinese Consumers’ Access to FSMP

Posted on by Vivian Yang

by Vivian Yang

JD Health has been expanding supplies and services on foods for special medical purposes (FSMP) to make them more accessible and affordable for Chinese consumers via the internet, said Ye Yang, general manager of the nutrition and healthcare department of JD Health during a webcast discussion on the topic of FSMP’s innovations and role in promoting health in China held by People’s Daily in Beijing on March 13th.

FSMP are intended to provide nutritional support to people who suffer from a specific disease, disorder or a medical condition, as a part of their dietary management. In recent years, Chinese policies such as the National Nutrition Plan (2017-2030) have put forward clear requirements for promoting FSMP and its application standards. It has also drawn increasing attention among the larger public, especially because of its value for the elderly, infants, pregnant women and patients who have special nutrition needs.

JD Health is China’s online channel that offers the most comprehensive FSMP categories, with 41 products available for online sales so far that have been approved on the Chinese market and are suitable for home use.

Nutrition-related content on JD Health’s online hospital

JD Health’s data shows that 92 percent of users wished to receive professional guidance on healthcare advice and product usage when they look for FSMP products online. Thus an “Ask a Doctor” tab is embedded in JD’s products’ pages where users can directly interact with doctors or nutritionists to get real-time support. Users can also go to the dedicated portal of the nutrition department under JD Health’s online hospital for more comprehensive knowledge and consultations.

JD Health launched customized Family Doctor telemedicine service for FSMP users

Last October, JD Health introduced seven customized Family Doctor services for FSMP users, focusing on providing personalized telemedicine services for allergy-prone infants, malnourished infants, patients after tumor surgeries, and more special groups of users.

 

(vivian.yang@jd.com)