Jingdong'S Logistics Transformation Supply Chain Platform On The Eve Of The "Double Eleven" War

"Over the past two years, Jingdong has accumulated more than 200 thousand customers in logistics services, and its external revenue has increased by more than 8 times, accounting for nearly 40% of its total revenue." At the 2019 global intelligent logistics summit held in October 29th, CEO Wang Zhenhui, Jingdong logistics group, told the twenty-first Century economic report that the Jingdong logistics group was established for two and a half years. The strategy of opening to the outside world has been progressing smoothly. The corner color of independent logistics operators has been identified in the market, and Jingdong logistics will achieve breakeven in the year.

With the consolidation of the role of independent carriers, Jingdong logistics has quietly carried out strategic transformation. Wang Zhenhui announced in October 29th that Jingdong logistics will work together to build a supply chain industrial platform to create a full supply chain service and technology system. Among them, the logistics of Jingdong will achieve a "double 24 hours" and "double 48 hours" service to achieve full production chain links and domestic dual links.

In other words, Jingdong logistics is not satisfied with just doing logistics express operators, hoping to extend to supply chain platform. "The supply chain industry platform will focus on two main directions: first, to provide full supply chain services; the two is to build a supply chain technology platform. Jingdong logistics will realize the integration of supply chain services from procurement, production to circulation and consumption through the opening of the production network and sales network, and truly open up the whole production and marketing link." Wang Zhenhui road.

Double eleven logistics war ahead of schedule

Guangzhou's largest fruit and vegetable distribution center, the wholesale market of Jiangnan fruits and vegetables, is greeted by Pei Weiqiang, a cold chain driver of Jingdong.

Double eleven is coming. Fruit wars are the most challenging battleground for double eleven logistics links. After all, fruit preservation is a race against time and temperature.

Pei Weiqiang has witnessed the standardized upgrading of the business from the "different senses" to the supply chain of fruits and vegetables from the "first mile" to the "last mile" of the table. The cold chain of Jingdong has been opened up through F2B2C one-stop cold chain service and integration of multiple resources, which not only let consumers receive more fresh fruits, but also make the supply chain of Jiangnan market and fruit and vegetable industry more quality and vitality.

In Long Island, Shandong, it is surrounded by the sea and connected to the mainland by ferry. Ma Jian, a native born Islander, has witnessed the lack of infrastructure from here to perfection. The life of the townsman is no longer confined to the natural obstacles of geographical location, and can also enjoy the consumption mode of "online ordering, one day arrival".

These changes are the epitome of Jingdong logistics "city group half day" and "thousand town 24 hours" aging plan. Up to now, including the Beijing Tianjin Hebei, the Yangtze River Delta, Chengdu Chongqing, the middle reaches of the Yangtze River and more than ten urban agglomerations, Jingdong logistics "half day" service has become standard, "24 hours" the average coverage rate of the city is nearly 95%.

On the world map, the 48 hour access to the world is also accelerating. When Jingdong logistics Tianjin bonded warehouse opened just now, Ji Cheng Yu joined in. He witnessed the growing demand for overseas goods, and felt the improvement of the logistics timeliness and the narrowing of the world economy. Ji Chengyu often heard a friend say, "it takes ten and a half months to get things from abroad before. I didn't expect to buy overseas products in Jingdong."

Under the trade trend of "buying the whole world" and "selling the world", the supply chain enterprises represented by Jingdong logistics, through establishing overseas warehouses, opening cross-border lines, and intelligent multimodal transport, will help consumers to bridge the world connection and help China make global products, and all ball products will enter China.

Strategic transformation supply chain platform

Today, Jingdong logistics intends to go further. After the growing maturity of the consumer Internet, the industrial Internet is in full swing, and the profound transformation and evolution of the supply chain become an inevitable demand. Wang Zhenhui said that the digitalization of the supply chain will fully promote the transformation, upgrading and efficiency of the industry. Jingdong logistics will link the production and marketing link with the whole supply chain service, and supply the modularized technical capability of the supply chain formed by robots, artificial intelligence, 5G and big data, so as to promote the establishment and efficiency improvement of the industrial supply chain technical standards.

Wang Zhenhui said that in the whole supply chain service, Jingdong logistics will focus on "the first mile" and "the last mile", and build up the upstream and downstream outlets, and gradually achieve production and marketing. In the "first mile", the logistics network construction of Jingdong will continue to extend to the industrial belt, producing area and factory, build the producing area warehouse, straighten the transportation line, build the efficient network with the core of production area and the whole nation, and achieve the goal of starting from the place of production, reaching 24 hours nationwide.

In the last mile of the market, Jingdong logistics will vigorously upgrade the logistics service experience of the 4-6 tier cities, so that consumers in the low line market can enjoy the ultimate logistics experience. Prior to the Jingdong logistics has launched the "thousand counties ten thousand towns 24 hours" aging improvement plan, will achieve today's order, tomorrow service, or even half day service, leading the rural logistics timeliness and experience upgrading.

In international business, Jingdong logistics can reach more than 200 countries and regions in the world to meet the needs of domestic businesses, cross-border imports and overseas local logistics services. Based on the global intelligent supply chain infrastructure network (GSSC), a "double 48 hour" access network will be built, enabling offshore goods to enter China and Chinese brands to become more convenient to the world. Wang Zhenhui said that Jingdong logistics can provide one-stop import and export services including international transportation, customs clearance, customs clearance and so on to help businesses develop international markets. Take WAL-MART as an example, through the one-stop solution of cross border logistics, Jingdong logistics helps WAL-MART's cross-border business grow rapidly in the domestic market. The number of SKU increased by 95%, GMV increased by 139%, and the length of the contract was 1 days.

In addition, Jingdong logistics is also committed to exporting the "China standard". After years of development, Jingdong logistics has accumulated a lot in the modern supply chain system, technology, operation and management experience. It can export these capabilities to enhance the local logistics efficiency and experience according to the actual environment of various countries.

The new third growth curve is internationalization.

Prior to the start of the logistics summit, Wang Zhenhui accepted the twenty-first Century economic report, which revealed that since 2007, Jingdong self built logistics began to open to Jingdong logistics in 2016, and to nearly 40% of the external revenue this year. With the continuous improvement of infrastructure and the mature application of innovative technology, Jingdong Logistics has officially ushered in its own harvest. "We have achieved breakeven for the first time in the third quarter of this year, and we expect to achieve breakeven even in the whole year."

If the profit and loss balance is realized, Jingdong logistics can finally "wean" the adult from Jingdong group, and it will also add a beautiful image to Jingdong's financial statements. After all, in the past decade or so, Jingdong logistics has been the largest and largest business segment of Jingdong group.

Wang Zhenhui did not disclose specific revenue data, but said that the current financial data is optimistic. He stressed that it is easy to make profits, but Jingdong logistics pays more attention to customer satisfaction and performance costs at this time, and will not sacrifice performance efficiency for profit targets.

Data show that in the past three years, the performance cost of Jingdong was 18 billion 600 million yuan, 25 billion 900 million yuan, and 32 billion yuan respectively, accounting for 7%, 7.1% and 6.9% respectively in income. In 2019, the number of Q1 decreased to 6.7%, and Q2 was 6.1%. He predicts that next year's performance cost will remain at 6.1%. "The precise prediction of orders, the optimization of human efficiency management and the efficient operation of intelligent logistics infrastructure have become the key to the continuous improvement of Jingdong logistics performance efficiency." Wang Zhenhui road.

Because of the continuous reduction of the cost of performance, more and more enterprises have attracted the use of Jingdong logistics. Wang Zhenhui disclosed that there are three types of Jingdong logistics customers: the first category is Jingdong mall, accounting for 60% of the business. The second category of customers is the POP platform, especially those on the e-commerce platform. The third type of customers are offline business and industry customers. "The third fastest growing customers are us." Wang Zhenhui said that many industries have industrial supply chain needs, such as the clothing industry, which is an excellent opportunity for Jingdong logistics.

Positive financial statements allow Jingdong logistics to adjust strategically more calmly. Wang Zhenhui told the twenty-first Century economic report that Jingdong logistics has just identified three growth curves. The first curve is the integrated supply chain, also called integrated logistics, also known as supply chain logistics, that is, Jingdong's original warehouses, distribution, express, cold chain, large and small pieces of logistics services.

The second growth curve is logistics technology, including unmanned technology, value supply chain, cloud storage technology and other technologies, such as 5G Logistics Park platform.

The third newly established growth curve is international business. "We feel that China is going global and the world is selling to China. There is still a very big business and there is a huge room for growth." Wang Zhenhui believes that China's global dual channel business is quite impressive, and the logistics efficiency of some countries still has much room for improvement. The technology of Jingdong logistics can grow and expand abroad through symbiotic means. "This is the opportunity I have seen over the past year and abroad." Wang Zhenhui road.