Other supplies and 200,000 RMB worth of masks in an hour

JD’s Supply Chain Enables Shaanxi Coal Mine to Increase Operation Efficiency Through Automation

Posted on Aug 31, 2021Nov 8, 2022 by Mengyang He

by Mengyang He

On August 23, JD Logistics (2618.HK) reported its 2021 interim results. In the first half of the year, JD Logistics (JDL) kept investing in the infrastructure construction, supply chain technology, R&D, and further expanded the width and depth of its supply chain solutions and services. As of June 30, 2021, the number of external integrated supply chain customers reached over 59,000, one of which is a leader in the mining industry, Xiaobaodang Mining Company.

The intelligent supplies warehouse powered by JDL’s integrated supply chain serves as an example of digitalization of the mining industry. As coal mines used to be the epitome of danger and were far from being technically advanced, JDL provides digital solutions to the industry. Coal mine warehouses are now equipped with various technologies that increase both safety and operation efficiency.

“Hi, I’m here for the supplies,” said Wang Peng, a frontline worker from Xiaobaodang Mining Company. Standing in front of the intelligent supplies desk, Wang is in urgent need of valves that should be delivered into the mine.

On the other side of the desk, Liu Pei, a janitor of the company’s intelligent supplies warehouse, pinpoints the corresponding order in the supplies management system and calls for the supplies through the PDA smart device. The supplies arrive shortly, and after confirming the right specifications and models, Liu clicks “out of the warehouse.” Then Wang Peng receives the supplies he needs, and the whole process takes only a few minutes.

This is a microcosm of Xiaobaodang’s smart coal mine. Xiaobaodang has transformed itself into a modernized coal mine since 2017. However, during the process, it has confronted many challenges in digitalization, notably the supply chain management.

Yet, with an area of nearly 3,500 square meters, it is the first smart warehouse in the coal mining industry in northern Shaanxi region. What facilitates the material supplies of Xiaobaodang is JDL’s integrated supply chain.

Impact on Operation Efficiency

“In the past, the common supplies needed by downhole operations had to be pre-ordered with a plan and then collected from the warehouse,” said Ke Xiangang, a manager from Xiaobaodang’s intelligent supplies supermarket. “Excessive orders would result in overstocking, while insufficient orders might affect the operations. Now, the intelligent supplies supermarket has realized the smart management of the warehouse and one-stop distribution. No matter if it is an order in advance or an order on short notice, it can be operated online, and even the supplies can be ‘grab-and-go.’ It effectively reduces the material storage and optimizes human resources.”

There used to be dozens of staff in the material storage area responsible for the inventory, storage, etc. After the cooperation with JDL, a team of seven can handle the management of nearly 4,000 stocks in the smart warehouse. All processes have become more labor-efficient, safe and reliable, whether it is PDA device usage, scanning, using the Automated Ground Vehicles (AGVs), automatic handling of large items, or intelligent storage.

According to Ke Xiangang, due to the wide application of intelligent systems and equipment, the nature of work has evolved. Today, workers spend over a third of their time dealing with smart devices. “We are now interacting with all kinds of robots instead of materials as it used to be,” Ke said.

“At present, Xiaobaodang has realized full automation of material handling, thus its space utilization rate increased by 150%, overall storage increased by 70%, operational efficiency increased by 50%, and transport efficiency has also been significantly improved,” JDL reveals.

Goal: An Intelligent Coal Mine

Material control is an important part of reducing production costs. The more process it takes, the more investment it requires, and the more manpower, inventory, and waste it creates. Therefore, Xiaobaodang partners with JDL, using IoT, automatic guiding and storage to implement the planning and construction of unmanned management of intelligent supplies warehouse.

The warehouse management system (WMS) built by JDL for Xiaobaodang can not only realize high-density storage of goods, delivery selection, and automatic warehousing, but also provide professional services for material supply in the direction of warehouse distribution data, intelligent adjustment, sales prediction, analysis and diagnosis.

(hemengyang5@jd.com)

JD at Gartner Forum: Connecting Products, Places and People to Enable Better Fulfillment

Posted on Aug 27, 2021Aug 27, 2021 by Ling Cao

by Ling Cao and Yang Feng

“As customers are continually shifting from a centralized platform to multi-end shopping places with increasing expectations of fulfillment capability, JD has implemented an omni-channel fulfillment model and redefined three core elements: Products, places and people,” shared Curtis Liu, president of intelligent supply chain at JD.com, during the Enterprise Supply Chain Leaders Peer Forum Asia-Pacific held by Gartner on August 24.

According to Liu, JD is building a closed loop experience including different online platforms and offline stores to provide a more convenient and better shopping experience for customers, such as online shopping, group buying, auctions, offline convenience stores and pharmacies. Customers can choose the preferred way to shop for products within JD’s ecosystem. “It is like using one membership card for every store in multiple shopping malls,” explained Liu.

Curtis Liu

As for products, JD is trying different practices to create more value to meet customers’ demand—Consumer-to-Manufacturer (C2M) is one example. By providing customer insights to manufacturers and fully supporting the whole process, from product design to sales operation, JD is able to launch more new products quickly and efficiently for both upstream and downstream stakeholders. Data shows that 40% of home appliances sold on JD.com in 2020 were produced through the C2M process, and more than 1,000 brands developed C2M products across over 900 different product categories during the year.

However, connecting the three categories of products, places, and people together requires a highly efficient fulfillment system. Liu shared, “Our intelligent fulfillment system is able to integrate and process huge amounts of different types of information simultaneously, such as order information, delivery capacity, and inventory availability, and output the fulfillment decision automatically.”

For example, during this year’s JD 618 Grand Promotion, JD’s intelligent supply chain made hundreds of thousands of decisions per day to improve the efficiency of replenishment, transfer, and fulfillment, making sure the process ran smoothly down to the last mile, even during peak times. The average time of producing fulfillment decisions can be as short as 50 milliseconds for tens of thousands of incoming orders at the same time.

“Going forward, we will focus on several areas, such as attaching services to products to produce more and better combinations; further developing our B2B business and building corresponding fulfillment capability; and extending our supply chain to upstream such as product design, raw materials supply, and manufacturing. Finally, we will also focus on both physical and digital areas,” shared Liu about the future plans.

(ling.cao@jd.com)

JD.ID Explores Omni-channel Innovation as Indonesia Warms to E-Commerce

Posted on Aug 26, 2021Jun 27, 2022 by Kelly Dawson

by Kelly Dawson

COVID-19 has hastened the digitalization of Indonesia’s commerce industry—but unique cultural factors have underscored the importance of an omni-channel approach in a country where offline shopping remains the dominant shopping mode. JD.com’s joint e-commerce venture JD.ID is leading that development, with technology that streamlines both the customer and vendor experience while considering Indonesian cultural preferences.

“Indonesia is unique in the way people shop,” said Eyvette Tung, JD.ID’s Head of Offline Business. “It’s a service culture. Indonesian shoppers are not independent, and prefer not to be. You see in other places like China that everyone is going online so quickly, but people in Indonesia want that interaction, and they like to be served. That’s a big reason we’re ramping up efforts offline, even as we build out our online infrastructure.”

In a country where many have maids, drivers and nannies, people will often ask their helpers to do their shopping for them. In scenarios in which more discernment is needed, customers may travel to the store and then seek out staff for advice and guidance on the best choice. Online repairs and refunds have historically been a hassle, and many believe that in-store service is simply faster and more reliable.

Additionally, shopping at a physical mall is considered to be a pleasurable activity, with many choosing to shop in their free time to escape the heat and humidity, Tung said. Drivers in Jakarta are likely to pass a shopping center every 5-10 kilometers, an indication of how deeply entrenched offline shopping is in the culture and infrastructure.

Impact of the pandemic

However, when the pandemic accelerated in 2020, circumstances necessitated that many shift their shopping behaviors online, or to a hybrid omni-channel model. The country’s e-commerce gross merchandise value grew nearly 65% to US $37 billion in 2020, according to a study by management consulting firm Redseer. Consultancy PWC Indonesia’s Global Consumer Insights Survey 2020 reported that 69% of respondents indicated that they were buying more groceries online following COVID-19 restrictions, as compared to before the pandemic, and 57% said they would likely continue shopping online even after the pandemic.

This represented an enormous opportunity—but many vendors and shoppers were caught off guard, Tung said.

JD.ID operates a hybrid first-party and third-party business platform. While its first-party business already ensures swift same or next-day delivery of a wide-ranging inventory thanks to an efficient, reliable in-house logistics network delivering from JD.ID’s warehouses or drop stations, many customers expect on-demand delivery for groceries and fresh produce—which requires a different level of speed and efficiency made possible by JD.ID’s partnership with third-party on-demand delivery service Gojek.

However, in the early days of the pandemic, JD.ID faced a major problem shared by all Indonesian e-commerce platforms. At the time, the platform limited one store to one location, meaning that if the Carrefour supermarket chain, for example, wanted to open a store online, it could only list one location—which might be hours away from the customer, depending on their location and traffic conditions. In some cases, customers might not receive their deliveries until the next day or later.

To get around this limitation, Carrefour could open multiple stores on the platform, but each location would need to assign staff to manage that store on the platform, updating inventory daily and handling customer service requests separately for every location. Even then, customers shopping on the platform would not be able to easily discern which of the multiple locations was closest to them.

With this system, both the customer and the vendors faced enormous inconvenience.

Nearby Shops

In response, JD.ID launched the “Nearby Shops” feature on its platform in Nov. 2020—and remains the only Indonesian e-commerce platform with this feature today. Now, a vendor can open one store on the platform with many separate locations stored within that store, giving customers the option to choose the location closest to them by distance, which is clearly displayed and easily searchable. Additionally, customers can check inventory to ensure that the chosen location has their desired items. With the new system, JD.ID shoppers who opt to use the “Nearby Shops” function can receive deliveries in as fast as 30 minutes, or pick up on site at the closest location. Micro, small- and medium-sized businesses can also benefit by appearing in the list of locations closest to customers.

Additionally, vendors will be able to manage one customer service channel for all the locations under their official store, cutting hassle and streamlining the process.

“We’re the first e-commerce platform in Indonesia to offer the ‘Nearby Shops’ feature and therefore that level of convenience and speed,” Tung said. “We wanted to consider what the benefits could be for both business owners and customers. For Indonesia, anything digital is still a very new concept, so even though we have a lot of younger customers who are more savvy, the majority of people, whether customers or vendors, are still adjusting to these new developments.”

For the time being, JD.ID’s Nearby Shops feature is limited to Jakarta, but the company is preparing to expand outside the city. Many businesses outside of Jakarta have already contacted JD.ID in hopes of participating, so the demand is clearly waiting to be met, Tung said. “Outside of Jakarta, our delivery times are already among the best in the country, because we manage our own logistics. But we think in the future, we’ll also be able to expand the Nearby Shops feature to cover the entire country, offering an even better customer experience for people outside of Jakarta.”

Offline-online ecosystem

While the country’s e-commerce boom is heartening, more than 90% of all commerce in Indonesia was still offline in 2020, according to consultancy PWC Indonesia’s Global Consumer Insights Survey 2020. Many shoppers still opt to make less frequent, higher-value purchases in-store, preferring to test products and receive guidance from staff before splashing out on bigger items. Among reasons listed by respondents for preferring to shop offline were: proximity to physical stores, assured availability of items, and the pleasure of what some called a “fun pastime.”

In this context, JD.ID has experienced a similar trajectory to its parent company JD.com in China, in which its push to digitalize has been paired with a realization that offline will continue to matter. Even before the pandemic, JD.ID was aggressively developing its omni-channel services, but COVID-19 has only underscored the importance of online-offline integration, Tung said.

Even now, new shopping malls are popping up all over Jakarta, she noted.

“It’s only going to grow, so it’s a very exciting time,” she said. “Omni-channel will definitely continue to be a big part of business in Indonesia. Our team is constantly thinking about how we can offer additional services to create a better customer journey, and how to create more fluency in the way customers shop. It’s exciting to help customers find new and better ways to get what they need.”

As the country gradually settles into the new post-COVID normal, people will continue to shop both online and offline, Tung said.

“As that happens, it’s our responsibility to create an ecosystem in which offline and online complement each other, not compete with each other.”

(kellydawson@jd.com)

JD Health H1 FY21 Earnings: Users Growth, Cold Chain Medicine Delivery and Digital Transformation

Posted on Aug 26, 2021 by Hui Zhang

by Vivian Yang and Hui Zhang

JD Health reported its H1 FY21 earnings results on August 25. Highlights include:

Revenue growth of 55.4% year-on-year to RMB 13.64 billion
Annual active users on the platform reached 109 million, an increase of more than 18.8 million new users for the 12 months ended June 30, 2021
Retail pharmacy businesses have covered 400,000 SKUs
Over 130,000 doctors are practicing either full-time or part-time on the platform, with average daily online consultations exceeding 160,000

JD Health is positioned to create a technology-driven platform that centers on the supply chain of pharmaceutical and healthcare products and is strengthened by healthcare services, encompassing a user’s full life span for all healthcare needs. In the first half of the year, JD Health has expanded its technological capabilities to support the digital transformation of real-economy enterprises in China, in particular SMEs and organizations from the grassroots and rural areas.

“We are constantly strengthening our capabilities on ‘retail pharmacy + healthcare services,’ and will continue to make progress on opening them up to society,” said Lijun Xin, CEO of JD Health. “On the one hand, we aim at supporting the digital transformation process of enterprises across the industrial value chain. On the other hand, we have increased investment on social value creation by providing digital technologies to support health services development in grassroots level and rural areas, promoting inclusive healthcare services to every user and making more contributions to the high-quality growth of China’s real economy.”

Social Responsibilities

With the resurgence of COVID cases in China since early 2021, JD Health has been upgrading its online platform and offline service network, with experiences accrued last year, to provide bookings and home services for the public to conduct nucleic acid tests and vaccinations.

When Henan province was inundated by severe floods in mid-July this year, the company responded swiftly in the relief work including launching 24/7 free online medical consultation services, donating disinfection and anti-pandemic materials, dispatching medical rescue teams on site, and providing supportive measures for local partners and SMEs.

In this March, JD Health established its Rare Diseases Care Center to build a one-stop solution platform for patients with rare diseases, helping them to tackle difficulties in accessing medical treatment, medicine, insurance and charity support.

Health Products Distribution

JD Health’s self-operated business grew by 52.9% reaching RMB 11.8 billion during the reporting period. It is currently operating 17 medicine warehouses and over 350 non-medicine warehouses. Leveraging JD Logistics nationwide infrastructure, it has established cold-chain delivery capabilities in about 100 cities across China. To further expand people’s access to new special medicines, JD Health also opened a number of next-to-hospital and DTP drug stores offline.

During the reporting period, JD Health continued to deepen cooperation with leading pharmaceutical companies including UBC China, Sanofi China, Novartis, Guilong Pharmaceutical and more, with the goal to improve medicine circulation in China through a highly-efficient, digitalized and intelligent medicine supply chain.

Meanwhile, the company is leveraging the Customer-to-Manufacturer (C2M) model to help more producers create customized products for targeted users, further promoting the upgrade of consumption and the industrial value chain. A number of customized products under JD Health’s C2M model have been introduced to the market and have gained popularity in H1 this year, including Chinese-New-Year themed masks, masks with essence oil, scented disinfectant gel, antibacterial hand cream and more.

JD Health has also stepped up efforts on its omni-channel deployment and pharmacy alliance model. In the first half of the year, JD’s fast drug delivery services have covered over 300cities across the country, providing 24/7 service for customers. Meanwhile, it extended smart supply chain capabilities to SMEs to improve cost and operating efficiency, supporting over 500 drug stores under the JD Pharmacy Alliance across the country.

Healthcare Services

JD Health continued to improve its online consultation services by introducing more specialized medical centers online. As of June 30, the number of specialized medical centers rose to 24, with the number of both internal and external physicians and specialists exceeding 130,000. The average daily online consultation volume in the first half of the year continued to skyrocket during the report time, surpassing 160,000.

In 2020, JD Health launched the “family doctor” telemedicine service program to provide timely, consistent and comprehensive primary healthcare support for Chinese families. During the report period, the number of active users of JD’s “family doctor” services accounted for 87% of the total number of service users. The average monthly user growth rate so far reached 220%.

JD Health also continued to integrate online and offline services by providing users with services such as physical examination, medical cosmetology, stomatology, nucleic acid testing, vaccines and so on.

Digital Transformation

JD Health has been constantly offering intelligent solutions for offline institutions such as local governments and offline hospitals among others to contribute in optimizing the reasonable allocation of medical services and resources. For example, JD Health launched its first Internet hospital for Traditional Chinese Medicine (TCM) in cooperation with the First Affiliated Hospital of Henan University of Chinese Medicine.

Leveraging JD’s big data, AI, 5G among other technologies, JD Health is also helping to promote the construction of “Health City” projects in several cities including Beihai in Guangxi, Taicang in Jiangsu and Hebi in Henan. Meanwhile, JD Health also provides a one-stop omni-channel digital intelligence solution for offline retail pharmacies, helping to connect industry to commerce, commerce to terminal pharmacies, and pharmacies to users, and further promoting the transformation and upgrading of traditional offline retail pharmacies.

(vivian.yang@jd.com and zhanghui36@jd.com)

JD News Roundup Vol. 18: Q2 2021 Earnings, Gen Z Insights and More

Posted on Aug 26, 2021Aug 26, 2021 by Kelly Dawson

Welcome to volume 18 (August 16-23) of our 2021 weekly digest. Here we consolidate a selection of JD news and give context on why it matters. If you have any questions or topics you are hoping we will explore, please email press@jd.com.

BUSINESS HIGHLIGHTS

JD announces Q2 2021 Earnings

On August 23, JD announced its earnings results for Q2 2021, with key figures including revenue of RMB253.8 billion yuan; service revenue of RMB 34.1 billion yuan, and user base growth of 27.4%, bringing JD.com’s annual activer users to 531.9 million.

Speaking during the call, JD Retail CEO Xu Lei highlighted various achievements. During this year’s 618 Grand Promotion, over 236 brands achieved sales of over RMB 100 million; net proceeds of RMB 23 billion yuan from JD Logistics‘ IPO on the Hong Kong Stock Exchange; exciting partnerships with BVLGARI, Guerlain, benefit and more; and omni-channel expansion.

Xu believes omni-channel expansion will help “break the glass ceiling for JD’s long-term growth,” he said during the call. “I’d like to reiterate that only JD’s business model has the ability to truly land the omni-channel plan. This is because the strategy is founded on JD’s supply chain capabilities, which we have built and honed over the past 18 years.”

JD LOGISTICS

JD Logistics (2618.HK) also announced its 2021 interim results on August 23, with the company’s revenue increasing by 53.7% from 31.5 billion for the six months ended June 30, 2020 to RMB 48.5 billion for the six months ended June 30, 2021. Additionally, revenue from external customers of JD Logistics for the first half of 2021 was RMB26.5 billion, accounting for 54.7% of JD Logistics’ total revenue, showing that more and more partners are leveraging JD Logistics’ infrastructure to improve their operational efficiency.

JD HEALTH

Monthly user growth rate doubles for JD Health’s Family Doctor services

On the first anniversary of JD Health’s Family Doctor services on August 18, the company showcased two impressive achievements: one being active users accounting for 87% of the total number of service users; and the other being a 220% average monthly user growth rate.

On the occasion of the celebration, JD Health also inaugurated a public welfare program to help Alzheimer patients in partnership with the China Aging Development Foundation, a national charity organization.

JD RETAIL

China’s Gen Z to fuel auto boom in lower-tier cities, according to new JD report

Over the next decade, China’s automotive market will see a boom in third- to fourth-tier cities, with Gen Z being the main consumption force, according to the 2021 Automotive Consumption Report of Gen-Z published by JD Big Data Research Institute on August 18. Additionally, online sales of new energy vehicles on JD.com increased by 6.7 times YOY, and another 4.3 times in the first half of 2021 compared with the same period in 2020.

(press@jd.com)

JD Q2 2021 Earnings Call Highlights

Posted on Aug 26, 2021Aug 26, 2021 by Kelly Dawson

JD Q2 2021 Earnings Call Highlights

JD.com reported second quarter earnings on August 23.

During a call to discuss the results and a range of other topics, JD Retail CEO Lei Xu said that JD.com is a new type of enterprise based on the real economy with digital technologies and abilities, which inherently differentiates JD from the platform economy model.

JD creates value in multiple links along the industrial chain, from providing transaction technologies, delivery and more, he noted. For example, JD can help brands and merchants to grow healthily, and create more stable and high-quality jobs, forming a virtuous circle between business and social values, Xu noted.

This is aligned with JD’s long-term priorities: putting consumers’ needs at the core, treating employees with respect, and opening up the company’s technology and capabilities to partners for win-win cooperation—all key factors in JD’s continued growth.

Among the other achievements highlighted in the call were net revenues of RMB 253.8 billion, an increase of 26.2% from the second quarter of 2020; and net service revenues of RMB34.1 billion, an increase of 49.2% from the second quarter of 2020, due to the company’s ongoing strategy to open up its resources to merchants as well as parties beyond the JD ecosystem.

Further, in Q2 JD Retail sustained high-quality growth, with the company’s profit margin maintaining steady increases under comparable statistics, thanks to improvements in supply chain and operating efficiency. Despite facing fierce competition, JD saw a GMV growth of 27.7% YOY during its 618 Grand Promotion shopping festival, an achievement that can be interpreted as proof of the company’s rising recognition and mindshare among consumers, suppliers and brands, Xu said.

Additionally, the company maintained high-quality growth in active users. After passing the milestone of 500 million active users on April 1, 2021, JD saw an increase of 36 million active users during Q2, setting a new record of net increment in a single quarter. Among the new users, JD saw an uptick on the aspects of retention rate, shopping frequency and more, indicating that both JD’s user base and their lifetime value on JD have grown.

JD’s 3P marketplace business model has also increased, with growth in that area exceeding that of its 1P direct sales business during this year’s 618 Grand Promotion, a development that played a key role in Q2 business growth, Xu revealed. While many analysts and customers assume that JD’s strength in the electronics category hinges on its 1P business, the cellphone growth rate of 3P models hit 100% on JD during 618 this year. “This shows that JD Retail’s platform ecosystem ability has been promoted,” Xu said.

During Q2, JD expanded innovative partnerships with brands under luxury giant LVMH, including BVLGARI, Guerlain, Givenchy Beauty and more.

These partnerships are also prime examples of JD’s increasing focus on omni-channel, a strategy that Xu believes will help “break the glass ceiling for JD’s long-term growth,” he said.

“I’d like to reiterate that only JD’s business model has the ability to truly land the omni-channel plan. This is because the strategy is founded on JD’s supply chain capabilities, which we have built and honed over the past 18 years,” he said.

“With our supply chain, digital operation and integrated marketing capabilities in various shopping scenarios, both online and offline, we can synergize with suppliers and partners to effectively meet the customers’ needs that cannot be met by a pure online platform or B2C model,” Xu said.

Strong supply chain also ensures that JD can meet its goals of placing customers first, said Chief Financial Officer of JD.com Sandy Xu. “I want to emphasize that we believe that cost efficiency and customer experience are always the key to the long-term success of the retail industry, which translates into the supply chain and logistics capability,” she said.

Even as JD expanded its business, the company has not neglected its social responsibilities, Xu noted. In response to the severe flooding in the central China province of Henan this summer, JD donated over 20 truckloads of rescue supplies and daily necessities; and opened a free 24-hour hotline for medical consultation, and more.

During the second quarter, JD also published its Sustainability Report discussing the company’s achievements from 2018 to 2020 in creating a low-carbon enterprise, including gradually replacing traditional fuel-combustion trucks with new energy vehicles, reducing carbon dioxide emissions by more than 120,000 tons each year.

Speaking of recent regulatory changes, Xu said, “We believe these policies are not intended to restrict or suppress the internet and relevant industries, but rather to create a fair and orderly business environment and to promote long-term and sustainable development of these industries.” Further, these goals do not contradict either JD’s business goals or the company’s business philosophy of “doing business the right way.”

While global circumstances have at times felt precarious in the past year, JD is traveling a steady path. “I’d like to reiterate that JD is committed to delivering certainty and high-quality growth in a time of uncertainties, and living up to everyone’s support and faith in us,” Xu said.

JD Logistics 2021 Interim Results: Revenue from External Customers Accounts for over 50% of Total Revenue

Posted on Aug 23, 2021 by Yuchuan Wang

by Yuchuan Wang

On August 23, JD Logistics (2618.HK) reported its 2021 interim results. The company’s revenue increased by 53.7% from RMB31.5 billion for the six months ended June 30, 2020 to RMB48.5 billion for the six months ended June 30, 2021. Revenue from external customers of JD Logistics for the first half of 2021 was RMB26.5 billion, accounting for 54.7% of JD Logistics’ total revenue, showing the increasing trust and stickiness from the market, and that more and more partners are leveraging JD Logistics’ infrastructure to improve their operational efficiency.

In the first half of 2021, JD Logistics (JDL) kept investing in the infrastructure construction, supply chain technology R&D, and further expanded the width and depth of its supply chain solutions and services.

As of June 30, 2021, JDL operated approximately 1,200 warehouses, which covered an aggregate gross floor area of approximately 23 million square meters. Four hundred and fifty additional warehouses were added in the past year to JD Logistics’ network, which is equivalent to the total increase in warehouses in the 10 years from 2007 to 2017.

JDL also introduced its premium delivery services to more customers in remote areas and lower-tier cities in China. During JD.com’s 618 Grand Promotion this year, JDL provided delivery service within minutes in over 200 cities and same- or next-day delivery service covering 92% of districts and counties and 84% of townships in China.

Technology is a key driver for JDL’s development. In the first half of 2021, the R&D expenses were RMB1.4 billion, representing 2.8% of the total revenue. The company opened its first highly automated Asia No. 1 logistics park in Shanghai in 2014, and it ran 38 such logistics parks in 28 cities in China as of June 30, 2021.

Revenue from integrated supply chain customers grew 29.6% year-over-year in the first half of 2021 to RMB33.6 billion. As of June 30, 2021, the number of external integrated supply chain customers reached over 59,000, including industry leaders such as Xiaomi Youpin, CHEERS, Volvo, Midea, Tsingtao Beer and more.

“Our quality service is inseparable from our 260,000 front-line employees. Their enthusiastic, professional and high-quality service is the key for us to gain users’ trust,” said Yui Yu, CEO of JD Logistics. “We always believe that if the enterprise does good to its employees, the employees can better serve our users. For a long time, we have insisted on providing our employees with competitive salaries and benefits. We’ve been paying social insurance and housing funds for our employees for more than a decade. We hope that every employee can work and live with dignity and confidence.”

According to JDL’s earnings, salary and benefit expenses for employees involved in warehouse management, sorting, picking, packaging, shipping, delivery and customer services were RMB17.2 billion for the six months ended June 30, 2021.

JDL also plays an important role in leading sustainable supply chain in China. In 2019 it was the first Chinese logistics company to join the Science Based Targets initiative (SBTi). Through its Green Stream Initiative, JDL is making significant efforts with its up and downstream partners to counter global climate change.

Note: For all material above, please refer to the full release here.

(yuchuan.wang@jd.com)

JD.com Announces 2021 Second Quarter and Interim Results

Posted on Aug 23, 2021Sep 25, 2022 by Yuchuan Wang

On August 23, JD.com announced 2021 second quarter and interim results. Below is an infographic with the key highlights. The full release can be found here.

(press@jd.com)