Proving the Business Case for the Internet of Things

JD.com sets up smart logistics service in China

Steve Rogerson
May 9, 2017



Chinese online retailer JD.com plans to use AI and big data technology to provide smart supply chain and logistics services to businesses across a wide range of industries.
 
The company has set up a business group called JD Logistics. Zhenhui Wang, senior vice president of JD.com and head of fulfilment operations, will serve as CEO of JD Logistics, reporting directly to Richard Liu, chairman and CEO of JD.com.
 
“In the ten years since JD.com launched China’s first B2C logistics network, we have redefined what consumers expect from an ecommerce experience,” said Liu. “This move is a major step in our vision to make technology even more central to what we do over the next 12 years. Leveraging our unparalleled access to data from every step of the ecommerce process, from ordering to delivery and after-sales service, JD Logistics will use AI, big data and automation to once again redefine the potential of ecommerce logistics. We hope JD Logistics can revolutionise China’s commercial infrastructure and become the global model for smart supply chains.”
 
JD Logistics will provide business partners with supply chain services, including warehousing, transportation, delivery, after-sales service, as well as logistics services, including smart and cross-border logistics.
 
The company has one of the largest fulfilment infrastructures of any ecommerce firm in the world. As of the end of 2016, JD.com operated seven “Asia No 1” projects, which are among the largest and most automated smart fulfilment centres in Asia. It also operates 256 warehouses, as well as nearly 7000 delivery stations and pickup stations across China, which provide a nationwide last-kilometre delivery service.
 
JD.com is China’s largest online retailer and internet company by revenue, using its web site, native mobile apps, and WeChat and Mobile QQ entry points. As of December 2016, it operated seven fulfilment centres and 256 warehouses and 6906 delivery stations and pick-up stations in 2655 counties and districts across China, staffed by its own employees.