The first devastating blow to the logistics industry came when a trade war erupted between the United States and China. The global Supply chain took a beating, and factory production disruption created turmoil in the wholesale and retail industry. Goods never left factories, or they sat at ports waiting for the trade dispute to end.
When the virus reared its life-taking head, the supply chain was in the process of finding a new normal. But the world stopped in April 2020. Factories closed. Shipping companies stopped shipping. Retailers canceled orders, and the economy took a nosedive.
The Virus Changed The Way People Shop
JD Logistics is a division of JD.com. JD.com is an online superstar, thanks to the way the company diversified its marketing and logistics approach. The online company believes working as a unit produces results, especially when it comes to delivering packages to the rural areas and small cities in China. Delivering goods in China is a monumental task, according to other logistic companies. So, Thanks to JD’s popularity, most retail clients decided to turn over their logistical business to JD’s logistics division.
The reason retailers want to streamline wholesale services is not only cost-effective, but it also has its tech advantages. The symbiotic ecosystem JD developed continues to increase the efficiency of the supply chain. And it helps consumers gain trust in a tech-inspired logistics system. And the interesting part of the JD.com logistics story is the company did not exist until 2012.
Over the past nine years, JD.com was the catalyst that upgraded the value of logistics, according to Logistics CEO Zhenhui Wang. Mr. Wang told the press logistics is the infrastructure for society, especially in China. Logistics gives people the opportunity to improve their quality of life. This is the golden age of online retail marketing and logistics. JD.com and all its divisions are at the center of this transformation in the perception of shopping online.
JD Uses750 Mega Chinese Warehouses For Storage
Logistics companies need oversize warehouses in order to make the supply chain work. JD had more than 190 million square feet of warehouse space in China. That amount of space can house more than 6 million SKUs. Plus, JD’s Logistical division delivered more than 50 tons of commercial goods over the past eight years, according to Mr. Wang.
The JD logistical workforce is a 200,000 energetic group of dedicated employees. Employees stand behind the customer-first approach to logistics in order to improve the overall quality of the brand. But it also builds trust in consumers who do not understand the importance of a company that uses technology to deliver and stand behind its services.
The JD logistics story is not a typical tale. Over the last eight years, the network was able to service 100% of the counties and districts on the Chinese Mainland. That means even the mid and lower-tier villages experienced friendly as well as fast logistics service. Thanks to advanced technology, even the lower-tier villages experienced same-day delivery service.
CEO Wang Announces Upgrades In JD’s Logistics Services
August 18 is the official birthday of JD.com’s logistical superstar. This year’s celebration will allow CEO Zhenhui Wang to announce another mission that includes upgraded tech-inspired changes in service. Those changes include tweaking the brand’s image as well as the company’s organizational structure. Mr. Wang will also have the opportunity to thank logistics employees who successfully stepped up and implemented the customer-first initiative.
JD’s future tech-inspired logistics platform will be a game-changer in China’s attempt to get more connected logistically and to increase China’s economic strength.