Mar 11, 2022|
With Over Half Earnings from Outside, JD Logistics 2021 Revenue Surpasses RMB 100 Billion Yuan
by Yuchuan Wang
On March 10，JD Logistics (JDL) announced the first annual financial results since its IPO in 2021. With the total revenue reaching RMB104.7 billion yuan, representing 42.7% growth compared with 2020, the company’s revenue from external customers exceeded 50% of the total revenue for the first year, at 56.5%. As of December 31st, 2021, JDL operated over 1,300 warehouses, over 7,200 delivery stations and employed over 200,000 in-house delivery personnel.
Behind the strong results is JDL’s integrated supply chain solutions and high quality logistics services. In 2021, the number of JDL’s external integrated supply chain customers grew significantly and reached 74,602 with a year-over-year growth rate of 41.7%. In 2021, JDL served over 300,000 industry-leading customers such as Volvo Group, Xiaomi Youpin, Cheers, Shaanxi Coal, Chemical Industry Group and more, and has been customizing its solutions to also serve middle-sized clients in the industries of FMCG, apparel, 3C and eight other areas in total.
JDL’s integrated supply chain service is also blossoming in overseas markets. In 2021, the company opened automated warehouses in six countries including the UK, the US, Australia and the Netherlands, with a total number of bonded and overseas warehouses reaching to nearly 80. Its warehouse in the Netherlands served Hunkemöller, the eminent European ready-to-wear brand, covering the full range of B2B and B2C scenarios and fulfilling orders in the Netherlands, France, Belgium and Luxemburg via automated goods-to-person AGV（Automated Ground Vehicle） robots. It also launched cargo flights from China to Thailand, the US and the UK to provide as fast as 48-hour door-to-door transportation service.
Additionally, technology is a key differentiator for JDL, in that technological innovations are applied to all key stages of supply chain services to realize service automation, operation digitalization and intelligent decision-making. A total of RMB 2.8 billion yuan was invested in technology innovation in 2021, with a year-on-year increase of 37 percent. As of December 31, 2021, JDL had applied for over 5,500 patents and software licenses, among which more than 3,000 were related to automation technology and unmanned technology. 5G was piloted in Asia No.1 logistics parks in Changsha and Beijing, and a total of nearly 400 Level-4 autonomous delivery vehicles were put into daily operations for last-mile delivery in cities such as Beijing, Shanghai and Changshu.
These achievements are in great part thanks to JDL’s employees. JDL had over 300,000 front-line employees in 2021. The compensation packages for these front-line workers in warehouse management, sorting, picking, packaging, shipping, delivery and customer services increased by 37.3% from RMB26.1 billion in 2020 to RMB35.8 billion in 2021.With over 80% of the front-line workers from rural areas, JDL provides them with industry-competitive salaries, comprehensive benefits, and broad room for career development.
According to China’s State Post Bureau, JDL continues to maintain the best-in-class customer satisfaction ratings in 2021. Now, same-day or next-day deliveries via JDL have covered 93% of China’s counties and 84% of towns and villages.
Apr 25, 2024|
JD Logistics and MINISO Announce Expanded Partnership to Enhance Logistics Efficiency
JD Logistics (also known as JINGDONG Logistics), a leading global logistics provider, recently announced the expansion of its partnership with MINISO, the renowned household and consumer goods retailer. This collaboration, which began in 2022 with operations in Australia, now extends to MINISO’s network in Malaysia.
JD Logistics’ robust global supply chain infrastructure includes nearly 90 bonded, direct mail, and overseas warehouses across key markets such as the United States, Germany, the Netherlands, France, the United Kingdom, Australia, the Middle East, and Southeast Asia. Committed to replicating its proven supply chain management expertise from China in international markets, JD Logistics provides extensive support to a broad spectrum of clients, including international enterprises and Chinese brands expanding overseas.
MINISO’s diverse product range and rapid restocking requirements, combined with its strategic store locations in bustling commercial areas, present unique logistical challenges. These include critical delivery lead times and the need for off-hours operations to ensure uninterrupted customer experiences. JD Logistics has effectively met these demands through reliable and adaptable warehousing and fulfillment service solutions.
Notably, the trust built with MINISO has led some store managers to entrust their store keys to JD Logistics’ drivers to facilitate smooth and timely deliveries. Among them is JD Logistics driver Nick Yang, responsible for delivering goods to all MINISO stores in Sydney. Yang’s daily schedule involves commuting between JD Logistics’ warehouse and approximately 10 MINISO outlets throughout the city.
Over the next three years, JD Logistics will continue to develop its comprehensive global supply chain logistics network, which integrates overseas warehouses, international transshipment hubs, local distribution networks, and transnational transportation networks.
This partnership is not only a testament to JD Logistics’ proven expertise and global operational capabilities but also underscores the commitment of both companies to foster innovation in supply chain management for retail operations worldwide.
Apr 18, 2024|
JD.com Awarded 2024 INFORMS Prize for Excellence in Operations Research and Analytics
JD.com is honored to announce that it has been awarded the 2024 INFORMS Prize. This recognition makes JD.com the first Asia-based enterprise to receive the award, highlighting its pioneering use of advanced analytics and operations research/management sciences (OR/MS) within its business operations.
The INFORMS Prize is awarded an organization that has repeatedly applied the principles of advanced analytics and OR/MS in pioneering, varied, novel, and lasting ways. Previous recipients include Walmart, Wayfair, Amazon, UPS, Booz Allen Hamilton, BNSF Railway, Walt Disney Company, U.S. Air Force, General Motors, Intel, HP, IBM, Ford, Procter & Gamble and GE Research.
Speaking on behalf of the selection committee, Mehmet Gumus, 2024 INFORMS Prize committee chair, remarked: “JD.com is showcasing data science as a source of business success and a necessary element to achieve customer satisfaction with continuous and dedicated practice. JD.com is truly deserving of this prestigious prize, and the entire O.R. and analytics community joins INFORMS in thanking them for their priceless contributions to the field and the business world.”
JD.com’s commitment to enhancing operational efficiency and customer service through OR/MS has been integral to its success. The company has developed an independently managed intelligent supply chain system that utilizes cutting-edge operations research algorithms to optimize warehouse management and logistics operations. This includes the operation of hundreds of intelligent warehouses and dozens of “Asia No. 1” intelligent logistics parks.
“We are honored to accept the INFORMS Prize and will continue to be steadfast in our dedication to leveraging the transformative potential of operations research,” said Sandy Xu, CEO of JD.com. “Our company’s supply chain not only aims to lead the industry, but also enhance the efficiency and well-being of our entire ecosystem.”
By the end of the fourth quarter of 2023, JD’s supply chain infrastructure assets had grown to RMB 153.8 billion, an increase of 16% year-on-year. Managing over 10 million self-operated SKUs, JD has achieved a global leading average inventory turnover of 30.3 days. This operational prowess enables JD to fulfill 95% of retail orders within 24 hours, significantly enhancing customer satisfaction and setting new standards in the industry.
JD.com’s Earnings Release: Number of JD PLUS members has Reached 25M
