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JD’s View: Integrated Supply Chain Solutions will Accelerate Logistics Digital Transformation

By Yuchuan Wang

JD Logistics anticipates that technology-driven integrated supply chain solutions will accelerate the digital transformation of the logistics industry. During the 2021 China Retail Supply Chain Annual Conference held on Mar. 31 and Apr. 1 in Shenzhen, JD Logistics invited experts from the logistics industry and representatives from retail enterprises to discuss digitalization trends and practices that have helped enterprises lower costs and increase efficiency.

Lei Zhou, director of strategy and innovation at JD Logistics, shared that retail brands, channels and supply chain had experienced great changes over the past year. Consumers are increasingly pursuing diversified services and products to serve individual needs. Innovative channels are popping up, which make omni-channel marketing and fulfillment challenging—but digitalization and intelligentization are the best response to the changing commercial environment, Zhou said.

Xuebin Sun, director of smart supply chain solutions at JD Logistics, said that the retail industry had faced pain points in managing inventory and distributing online and offline, in addition to the increased costs for last-mile delivery brought by the emergence of community group buying. JD Logistics is able to provide a one-stop supply chain management solution to waive these concerns.

Xiande Zhao, Professor of operations and supply chain management at China Europe International Business School(CEIBS), proposed the concept of “PDA” supply chain, namely, “Pull” , “Digital” and “Agile” supply chain. Digitalization plays the core role in the innovation of supply chain and business models. It enables the collection of data from different nodes and channels on the supply chain through digital tools, and integrates resources to lead data-driven decision making.

As China’s leading supply chain and logistics services provider, JD Logistics has served over 190,000 business clients in 2020, covering the industries of FMCG, apparel, home appliance, home furnishing, 3C and fresh produce. Among them, Rainbow is a chain shopping mall in China. Since 2019, JD Logistics has been helping Rainbow upgrade its warehouse management system and build automated warehouses. Weiping Peng, general manager of Rainbow’s logistics center, said during the event that the two parties would further collaborate in agile supply chain to drive a positive shopping experience and satisfy customers’ individual demands.

The integrated supply chain solution powered by JD’s logistics technology will continue accelerating the whole industry to undergo digital transformation.

(yuchuan.wang@jd.com)

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