"Most Technology": The Story Behind Jingdong 618 Supply Chain

"I placed an order last night and received it at noon today." On June 17, a user who has been shopping in Jingdong for a long time told reporters, "if the 618 and double 11 of previous years were delayed by half a day occasionally, this year's delivery was completely on time, and I didn't feel that it was 618 at all."

Consistent with this user's feelings, there are a series of world-class figures on Jingdong platform: inventory turnover of 31.2 days, and minute delivery of more than 200 cities across the country. Behind these figures, it is the result of the high-speed operation of the supply chain of Jingdong digital intelligent society.

Such a number has been astonishing at ordinary times. However, during the 618 promotion period, in the face of a large number of orders and goods flow, thanks to the joint efforts of retail, logistics, science and technology, the link of Jingdong is still extremely smooth.

Among them, technology as the cornerstone, its role can not be underestimated.

"From the first day," intelligent "has been running through the supply chain of Jingdong, trying to be more intelligent and automatic," said Liu Xiaoen, vice president of Jingdong group and head of Y Business Department of Jingdong intelligent supply chain, in a recent public sharing. "What makes machines more efficient and what things need to be judged by people, We try to combine the two better. "

At the same time, Liu Xiaoen said frankly that the current achievements of Jingdong are not the end point, but just a node on the road of Jingdong's exploration of intelligent supply chain. "We are developing to the leader of" no man's land ", and even hope to be able to explore the technology boundary. It also hopes to extend to the industrial end and help the social supply chain system to be more efficient. ".

Open up the supply chain with big, medium and Taiwan

In recent years, Jingdong has continued to increase the number of intelligent social supply chain, but in the process of practice, the establishment of the supply chain platform cannot be bypassed.

The core of the so-called supply chain center is to get through a series of supply chain capabilities from demand, scenario, order, and commodity circulation, including the ability to connect and connect scenarios, the ability to efficiently match demand and supply chain, the ability to manage orders and supply chain scheduling, as well as the ability to manage goods and logistics, Jingdong also needs to have the ability of product selection, pricing, procurement and logistics allocation, inventory management, etc.

"Behind the establishment of supply chain Taichung, it is actually a panorama of Jingdong's business group." Jingdong retail group's big business super Omni channel business group's general manager Qi Ting said. According to reports, established in April 2020, Jingdong supermarket business group currently covers B2C sectors such as Jingdong supermarket and Jingdong fresh food, and also develops innovative business sectors including Qixian, natural selection and Shuzhi agriculture.

"There are several characteristics in dashangchao's business. First, there are many categories, including consumer goods, fresh food, etc., which are subdivided into mother and baby, food, wine, personal care and cleaning, etc Qi Ting pointed out that at the same time, the business models and channels of the big business supermarket are also massive. The traditional B2C covers membership e-commerce, offline stores, as well as many external e-commerce platforms, supermarket partners, convenience stores, and community group buying.

In this process, it involves the cooperation of different teams and channels. The establishment of the supply chain center is intended to make the whole link, whole process and all channels form "one inventory"“ We highly integrate the internal supply chain, so as to realize one inventory in different fields, and classify the same inventory according to the user characteristics and sales data of different scenarios, so as to supply the same inventory to different ends. "

On the outside, the middle stage of the supply chain can also create value for brands. First of all, the efficiency of one inventory is more efficient, and at the same time, the data at each end can be completely returned, so that the brand can use a data Kanban to see the data performance of each end. As a result, users in different fields can eventually return to the brand side. In addition, this can also help the brand achieve global marketing through the connection of different front-end.

"The center of the supply chain is not a system, but a coupler," said Zou Yi, general manager of technology R & D Department of dashangchao Omni channel business group of Jingdong retail group. In this coupling, the upstream connects the performance ability of goods and logistics, and the downstream connection scenario, "whether it is the combination of double warehouses or natural selection, we are serving better experience with better performance cost, and achieve lower cost, so as to satisfy more terminal scenarios with better goods service."

More than 200 cities nationwide realize "minute level distribution"

It is difficult to imagine the complexity of the supply chain, and its realization is also very difficult, which depends on the power of technology.

As a technology and service enterprise based on supply chain, Jingdong integrates technology and practical application scenarios through continuous deep ploughing, and applies them on a large scale to help partners reduce costs, increase efficiency and enhance experience, so as to create the "most scientific and technological" Jingdong 618.

In terms of supply chain capacity building, JD intelligent supply chain decision-making through intelligent operation, warehouse network optimization, Omni channel performance, c2m reverse customization, created a world-class record of "inventory turnover days reduced to 31.2 days".

According to Liu Xiaoen, Jingdong is facing great challenges when it realizes 31.2-day turnover, mainly from four aspects: massive commodities, complex warehouse distribution network, online and offline multi scene retail mode, and supply and demand matching with a large number of upstream suppliers.

Costco, a global retail giant known for its operational efficiency, has 30.9 days of inventory turnover, but only a few thousand SKUs are managed by Costco. Jingdong has millions of SKUs and more than 1000 warehouses with a turnover of 31.2 days. Under the self support mode of the whole category, Costco has been in the leading position in the world.

In addition to efficient turnover, the application of technology in Jingdong's supply chain has also formed a seamless integrated supply chain, which also played a huge potential during the 618 period, helping more than 200 cities in China to realize "minute level distribution".

According to reports, in 2020, JD retail and logistics have jointly launched the "pre-sale pre-sale mode", which will pre-sale goods placed by consumers to the nearest express delivery site. Once the payment is successful, the goods can be received within 5 minutes at the earliest.

"The integrated supply chain created by Jingdong Logistics by means of automation, digitization and intelligence has become the" stabilizer "for the efficient and stable operation of Jingdong 618 this year. On the one hand, it fully guarantees the delivery of goods to the door across the country and the fastest delivery of more than 200 cities; on the other hand, it takes customer demand as the guidance and gives full play to the potential of technology driven integrated supply chain, Provide strong support for the majority of businesses to fully respond to Jingdong 618. " Jingdong Logistics Strategy and innovation business department senior expert Wei Haixing introduced（ Editor: Zhang Weixian)

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