Sep 25, 2023| JD Industrials

Volkswagen Group China Partners with JD Industrials for Digital Transformation of MRO Procurement

Vivian Yang

by Vivian Yang

Volkswagen Group China and JD Industrials recently inked a strategic partnership to digitally transform the MRO (Maintenance, Repair, and Operations) procurement process for Volkswagen in China. By leveraging JD Industrials’ advanced digital solutions, the initiative aims to bolster efficiency, streamline operations, and achieve cost reductions in Volkswagen’s procurement processes.

Having been a steadfast partner in China’s automotive landscape for nearly four decades, Volkswagen Group has built a comprehensive supply chain ecosystem within the country. The newly minted agreement integrates JD Industrials’ “full-chain solution,” designed to provide a seamless, one-stop online MRO procurement and digital management service for Volkswagen—from materials matching to order execution and financial settlement.

JD Industrials’ intelligent digital procurement platform enables precise analysis of MRO inventory metrics. This empowers Volkswagen with data-driven insights that optimize inventory management, minimize costs, and inform strategic decision-making.

Initially, the partnership will encompass seven entities of Volkswagen Group China, incorporating a vast array of over 14,000 SKUs in various MRO categories, ranging from advanced automotive testing tools to personal protective equipment and office essentials.

Alfonso Sancha, Executive Vice President of Volkswagen Group China responsible for Purchasing, said: “As the automotive industry undergoes a rapid transformation, procurement is a significant pillar to secure the Group’s strategic success. Volkswagen Group China is committed to transforming procurement in order to fulfill local demands with innovative local solutions, while supporting the Group’s development ‘in China, for China’.”

Chen Esheng, Vice President of JD.com and General Manager of JD Industrials KA division, said, “The automotive industry, with its rich century-long history, stands as a pillar of modern manufacturing. Given its intricate supply chain complexities, incremental digitalization is insufficient for achieving true cost-efficiency. JD Industrials remains committed to delivering tailored supply chain solutions for the automotive sector.”

“Together with our partners, our vision is to create a resilient, cross-industry digital infrastructure that accommodates a wide range of materials. This will enable seamless data exchange and reduce the physical movement of goods, paving the way for a more efficient and sustainable future,” Chen added.

(vivian.yang@jd.com)

Sep 4, 2023| JD Industrials

JD Industrials Introduces the “Full Chain” Solution: Driving Digitally Intelligent Transformation Across Industries

Vivian Yang

by Vivian Yang

JD Industrials, a subsidiary of JD.com and a leading provider of industrial supply chain technology and services, unveiled its innovative end-to-end supply chain solution, the “Full Chain,” during the company’s partners summit in Shanghai on August 31st.

The “Full Chain” solution offers an integrated framework that amalgamates various services and capabilities from all participants throughout the industrial chain, including product planning consultancy, procurement, management, operations, and after-sales services. Its primary objective is to facilitate a substantial reduction in operational costs and improve efficiency across various industry sectors.

Chunzheng Song, CEO of JD Industrials and Vice President of JD.com, underscored the company’s strategic vision by stating, “Our ambition extends beyond creating a mere solution; we aim to establish a comprehensive digital infrastructure. This platform is designed to expedite the transit of production materials and foster a digital transformation for businesses.” By opening access to this sophisticated infrastructure, JD Industrials envisions a surge in data flow while reducing the movement of physical products, resulting in a more streamlined and efficient supply chain.

As a testament to its commitment to collaboration, JD Industrials forged partnerships with representatives from the supply-side, demand-side, and logistics providers within the manufacturing sector. These partnerships will focus on embracing digitally intelligent solutions throughout the supply chain, with the goal of reducing costs and enhancing efficiency.

Specifically, the supply-side will share inventory information and offer products at competitive prices, while the demand side will accelerate their digital transformation and explore more cooperation opportunities. Logistic service providers will expand their delivery networks and improve service quality, while technology and service providers will enhance data connectivity. With the “Full Chain” solution as the foundation, JD Industrials will serve as the connector, facilitating data exchange and optimizing resource allocation.

A noteworthy endorsement of its efficacy, Nippon Paint China, a preeminent paint manufacturer in Asia, has integrated the “Full Chain” solution into its operations. Subsequent reports from their procurement department indicate a marked decrease in inventory expenditures across their 63 national factories, coupled with significant improvements in operational efficiency.

Song concluded the announcement by articulating his aspiration for expanded collaboration: “This initiative marks a seminal moment in our journey. We are earnestly seeking collaborations with industry leaders to formulate best practices in digital supply chain management, thereby fostering the continued advancement of the manufacturing sector.”

(vivian.yang@jd.com)

Feb 9, 2023| Europe, Global Partners/ Brands, JD Industrials

JD.com Welcomes Top Pump Brand Grundfos on its Site

Vivian Yang

by Vivian Yang

JD Industrial Supply launched the flagship store of the world-leading water pump Grundfos, a popular Danish brand, on January 30.

The first-party JD store offers 23 Grundfos products that can be applied to eight scenarios ranging from commercial building construction, industrial processes, urban water supply, industrial water treatment and more.

Wei Wang, general manager of the procurement department of JD Industrial Supply, said that the cooperation with Grundfos is an important step for the platform to provide more comprehensive industrial products and professional services for enterprise clients of all industries.

JD and Grundfos will work closely throughout the procurement process to provide efficient services from pre-sales technical consultations and after-sales installation to intelligent product type matching and other value-added services.

According to a spokesperson of Grundfos, it is critical to provide customized services in the pump purchase process, given the various operating circumstances in which the pump systems would be installed, especially under high or low temperatures, air pressure, and other extreme conditions. Grundfos will have its technical engineers collaborate directly with experts from JD Industrial Supplies to ensure smooth procurement and fulfillment, such as conducting on-site inspections, and providing design solutions, installation guidance, and other support.

Meanwhile, Grundfos’ product information will be connected with JD’s product standardization database. Known as “Mercator”, the database aims to create a set of unified parameter definitions for highly complex industrial supplies and a digitally intelligent solution, so that enterprise procurers only need to key in certain factors. For example, in Grundfos’ case, those factors might include liquid temperature, flow speed, delivery head, interface forms, etc. The database can quickly respond with precise product recommendations, greatly saving procurers’ time and energy in product selection.

(vivian.yang@jd.com)