The double eleven war had just ceased, and logistics became one of the key decisive points.
On October 25th, JD Express officially opened the Wuxi-Tianjin-Shenzhen-Wuxi freighter route. This is another “Xifa Chaozhi” next-day delivery route after JD Express announced on August 13 this year that it fully launched the aging and speed-up plan.
On the same day, the relevant person in charge of JD.com told Times Weekly that JD Express has reached cooperation with China Southern Airlines, Air China Cargo, China Eastern Logistics and other companies. The number of aviation cities has exceeded 60,000, and the number of cities that can be sent to air parcels has expanded to 245. Gradually expand from Tier 1, 2, 3 to Tier 4 to Tier 6 cities.
At the beginning of this year, JD Logistics, which has not stopped operations, played an important role in the fight against the new crown pneumonia epidemic. Subsequently, Jingdong increased its layout in the logistics field.
On October 22, at the 2020 Global Smart Logistics Summit hosted by JD.com, JDL Jingdong Logistics CEO Wang Zhenhui officially released the JDL JD Logistics Technology brand.
Wang Zhenhui said that JDL Jingdong Logistics hopes to become the world’s leading logistics supply chain company, with the core of openness and technology. Next, JDL Jingdong Logistics will organically combine innovative technology and diverse scenarios through the logistics technology of “Simplicity and complexity” to create digital, intelligent, and software and hardware integrated supply chain logistics technology products and solutions.
Looking back on the development of the past year, JD Logistics has achieved a breakeven for the first time after experiencing difficult “changes”. Under the influence of the epidemic this year, JD Logistics, which has entered its eighth year of development, may hopefully bring a new growth curve to JD.com.
Logistics anti-epidemic
For JD Logistics, an epidemic in early 2020 has become a major test of its eight-year development results.
According to Wang Zhenhui, after the outbreak of the epidemic at the beginning of the year, JD Logistics opened a nationwide and global clothing transportation channel for Wuhan as soon as possible; medical rescue teams in more than 30 provinces received free luggage delivery services from JD Logistics; more than 100 cities rely on JD Logistics The vegetable basket project was launched.
According to media reports, as of February 12 this year, JD Logistics has delivered more than 2,500 tons of epidemic prevention materials and emergency supplies from people across the country to Wuhan and surrounding areas. As of the end of March, JD Logistics has shipped more than 70 million pieces of medical emergency supplies with a total weight of over 30,000 tons.
Online, during the Spring Festival (January 25-February 2), the turnover of people’s livelihood commodities including rice, noodles, grains, oils and dairy products on JD.com increased by 154%. Among them, the turnover of rice and noodles as major daily necessities increased by 5.4 times and 4.7 times respectively, and the turnover of convenience food increased by 3.5 times.
The substantial increase in online sales, especially the explosion of orders for fresh products, puts a great test on JD Logistics.
At the end of August, JD.com released its financial report for the second quarter of 2020. In the second quarter, JD.com achieved net income of 21.1 billion yuan, a year-on-year increase of 33.8%, setting a new high in nearly 10 quarters, and achieving a single-quarter net income of over 200 billion yuan for the first time. Turnover days fell to 34.8 days, a record low for the company in the past five years.
The data also shows that as of June 30, 2020, JD Logistics has operated more than 750 warehouses, including the cloud warehouse area managed by JD Logistics, with a total storage area of approximately 18 million square meters.
On October 30, Zhao Xiaomin, an expert in the express logistics industry, told the Times Weekly reporter: “JD Logistics has performed relatively well during the Spring Festival this year, including after the economic recovery, it also continued a relatively good performance. Judging from the current storage area of JD.com, The smart backbone network of supply chain logistics that JD Logistics has been investing in for many years has already formed a scale, and its supply chain capabilities are constantly growing.”
Mission upgrade
After the epidemic, the two major shopping festivals of “6·18” and “8·18” this year also created opportunities for JD Logistics to speed up.
According to the “6·18” battle report released by JD Logistics at 0:00 on June 19th, as of 24:00 on June 18, JD Logistics’ integrated warehousing and distribution orders accounted for more than 91% of the orders received on the same day and the next day. Covering districts and counties accounted for more than 90%.
Zhao Xiaomin told the Times Weekly reporter: “We are still relatively optimistic about the development prospects of JD Logistics. It has always been a self-operated model and has certain advantages in risk management. Backed by the business flow of JD.com, JD Logistics actually has a lot of advantages. Great market competitiveness.”
After “6·18”, JD Logistics carried out a comprehensive upgrade.
In August this year, the Ministry of Transport and the State Post Bureau and other 18 departments jointly issued the implementation opinions on promoting the high-quality development of the postal industry. It is stated that by 2022, the whole country will basically realize the “village-to-village direct mail” and express delivery “township-to-township”. “With outlets”, basically achieve full coverage of e-commerce distribution in the organized villages through post and express channels, and key express companies will achieve 48-hour delivery between key domestic cities.
Wang Zhenhui said that during this year’s “August 18”, JD Logistics upgraded its mission to “technology-driven, leading global efficient circulation and sustainable development”, and upgraded its vision to “becoming the world’s most trusted supply chain infrastructure service.” Quotient”.
At the same time, JD Express announced the full launch of the timeliness and speed-up plan, especially to speed up the express delivery efficiency within the eastern coastal and central and eastern core urban agglomerations and between urban agglomerations, strengthen the ability of road-rail-air integrated network, and comprehensively improve consumers Delivery experience.
A person in charge of JD Express once told the media that the speedup of the timeliness is based on the geographical advantages of the eastern coastal and central and eastern core urban agglomerations, making the basic network layout of JD Express more closely integrated with the regional economy.
Technology investment
The industry generally believes that after the epidemic, the logistics industry will undergo tremendous changes and accelerate the development of “intelligence” and “unmanned”.
Wang Zhenhui also said at the meeting that JD Logistics will focus on two aspects of technology application and technology opening.
In terms of technology application, Wang Zhenhui said that JD Logistics will continue to strengthen investment in logistics technology to improve customer experience and human labor intensity. In the next five years, it will invest more than 100,000 robots.
At present, JD Logistics is cooperating with Changshu City, Jiangsu Province to build the world’s first “unmanned distribution city”, and its city-level unmanned distribution project has officially landed in Changshu. It is expected that by the end of the year, JD Logistics will invest nearly 100 unmanned delivery vehicles in Changshu.
In terms of technology opening, Wang Zhenhui said that in the next three years, JD Yuncang will achieve full coverage of all districts and counties across the country, realize centralized management of low-frequency products, pre-management of high-frequency products, and drop shipping of products from origin.
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