How JD.com Remains A Leader In Delivery & Logistics Innovation
JD.com, one of China's top retailers, offers flexible delivery and fulfillment options to allow shoppers to choose the one that best meets their in-moment needs
Delivery and logistics is where JD really shines, and the company claims it is able to reach 99% of the population in China and can deliver over 90% of orders within 24 hours. High-tech, automated warehouses and AI-enabled delivery systems, such as drones and autonomous vehicles, allow for speedy fulfillment.
Flexible delivery options, ranging from in-car delivery to white glove service, provide shoppers with a range of options to best meet their in-moment needs. As part of its Retail as a Service platform, JD is enabling retail partners, from traditional Chinese booksellers to global corporations, to leverage its sophisticated logistics service and better reach Chinese consumers.
JD opened a high-tech warehouse for exclusive use of the luxury brands, such as Alexander McQueen and Balenciaga, who have opened flagship stores on Toplife, its luxury retailing portal. The warehouse is dust-free and climate controlled, with a high level of security, in order to ensure that items arrive in perfect condition. Toplife also provides quick delivery through JD’s logistics network. Shoppers in major cities also have access to JD Luxury Express, JD’s white glove delivery service.
JD Luxury Express
JD.com launched a white glove delivery service, which offers personalized delivery of luxury items in order to offer online shoppers a more premium experience. Items are delivered by specially trained employees, dressed in a uniform of suite and tie—and white gloves—who drive electric vehicles instead of JD’s usual bicycles and scooters. The service is currently available in several Tier 1 cities like Beijing and Shanghai. White glove delivery service is automatically included in the purchase of items like watches and jewelry and is usually available by the next day.
JD In-Car Delivery Service
JD partnered with electric vehicle company NIO to offer an in-car delivery service. Shoppers can opt to have their purchases delivered to the trunks of their cars at home, at work or in other approved areas. The service uses connected car technology to automatically locate a shopper’s car, then enables the authorized delivery person to unlock the trunk to deposit the order. For added security, the delivery process is monitored through in-car cameras.
Kunshan Fully Automated Sorting Center
JD has opened a warehouse that can handle 200,000 orders a day but employs only four people. Packages are offloaded from trucks and loaded onto automated conveyors. Image scanners scan labels in microseconds, with the smart logistics system determining where the packages should be dropped off. The packages are grouped by region in large bins, which are picked up by autonomous forklifts and brought to the correct truck for delivery to their final destination. The warehouse’s four human employees are needed to service and maintain the robots.
Tangning Books x JD
Tangning Books, a bookstore in Guangzhou, partnered with JD to leverage its “retail as a service” platform in order to modernize its supply chain. Tangning Books had previously sourced its inventory from more than 60 suppliers, but now sources all of its books from JD.com’s inventory, replenishing every week in order to save on costs and delivery delays. The bookstore reports that sales grew 30% in the period after the partnership began. JD also offers its services to 48 other bookstores throughout China.
For more examples of innovations in Delivery & Logistics from China's largest retailers, download PSFK's China Retail Debrief.