- Nov 19, 2020
- Business Update
River Snail Noodles and JD’s Smart Supply Chain
by Yuchuan Wang
At the processing plant in Liuzhou, a third-tier city in Guangxi Zhuang Autonomous Region in South China, JD’s cargo vans are loaded up with packages of ready-to-eat Liuzhou rice noodles. Within just 24 hours, these packages will be delivered to customers’ doorsteps across China by JD.
People always describe Liuzhou rice noodles as “stinky but delicious”. Also known as Luosifen or river snail noodles, the dish has become one of the best-selling ready-to-eat food for quarantine foodies and named a “national dish” by Chinese netizens. According to the Commerce Bureau of Liuzhou, the production value of ready-to-eat Liuzhou rice noodles is expected to reach RMB 9 billion yuan this year.
Despite the popularity of the dish, many manufacturers have found that the business is not easy to operate. Liuming Huang, founder of Liuguan Liuzhou Rice Noodles, said that the operating costs of warehousing and transportation used to be quite high.
In early 2020, Huang’s company began to cooperate with JD Logistics (JDL). With the help of JD, logistics became worry-free for Huang. JD helps package products in his processing plant and transports them to JD’s warehouse in Liuzhou. Once a customer places an order online on JD, the products will be distributed directly from the warehouse and delivered to customers in 24 hours.
Liuming Huang (right), founder of Liuguan Liuzhou Rice Noodles and his staff
“The integrated supply chain service provided by JD Logistics has helped us save at least 20% in labor costs and has greatly lowered the damage rate,” said Huang.
“JD Logistics will continue to speed up its development in lower-tier markets. Leveraging supply chain technologies and services, JD hopes to build the bridge between manufacturers and end users through smart supply chain,” said a JD Logistics representative.