JD Logistics kicks off 2022 strong with supply chain solutions and sustainability – Hometown Station | KHTS FM 98.1 & AM 1220 — Santa Clarita Radio

When JD Logistics debuted on the Hong Kong Stock Exchange, Managing Director Rui Yu said, “This IPO allows JD Logistics to enter a new stage of development and also symbolizes greater social responsibility. In the future, the scale of the company and the organization of people will change, but the philosophy of “customer first” certainly will not. The business logic based on experience, efficiency and cost will not change. Adhering to the “noble principle of doing the right thing in the right way” certainly won’t change either.

One year later, JD Logistics proved its continued dedication to Yu’s statement. On March 10, the logistics arm of the technology and supply chain services company JD.com announced the first annual financial results since its IPO on March 28, 2021, posting 42.7% year-over-year growth with total revenue reaching $16.45 billion. As of December 31, 2021, JD Logistics operated more than 1,300 warehouses, 7,200 delivery stations and employed more than 200,000 internal couriers.

Perhaps most notably, more than half of JD Logistics’ total revenue in 2021 came from external customers, indicating the company’s continued growth as a provider of supply chain solutions outside of its own retail business. JD Logistics’ number of external integrated supply chains has grown significantly, registering a growth rate of 41.7% over 2020, totaling more than 70,000 customers. It has also provided services to more than 300,000 industry-leading customers, including Xiaomi Youpin, Cheers, Volvo Group, Chemical Industry Group, and Shaanxi Coal, among others. He has also focused on developing custom solutions for midsize businesses in industries such as fast-moving consumer goods, retail, and the 3C industry (computers, communications, and consumer electronics).

The business has also seen strong growth in international markets, with 2021 seeing JD Logistics open automated warehouses in six countries, including the UK, US, Australia and the Netherlands, and the number total bonded and overseas warehouses had reached nearly 80 per year. to finish. In the Netherlands, its warehouse is used by the European ready-to-wear brand Hunkemöller for a full range of B2B and B2C services in addition to fulfilling orders for the Netherlands, France, Belgium and Luxembourg with AGV (automated land vehicle) robots. 2021 also saw JD Logistics launch new cargo flights from China to Thailand, the US and the UK, enabling it to provide door-to-door transportation service in as little as 48 hours.

JD Logistics has made technology a key differentiator for its logistics services, with applications of innovative technologies present in its supply chain solutions enabling it to automate services, digitize operations and support intelligent decision-making. . With a strong focus on research and development, in 2021 it invested over $400 million in technology innovation, a 37% year-over-year increase. By the end of the year, JD Logistics had filed more than 5,500 patents and software licenses, more than half of which related to automation technology and unmanned technology. At the company’s “Asia No.1” smart warehouses located in Changsha and Beijing, it has started piloting 5G technology, and in total, nearly 400 Level 4 autonomous delivery vehicles have been activated for daily use in last mile deliveries across the country.

Unparalleled logistics has been a defining the strategy of JD.com since its inception as a business. Founded in 2003 by President and CEO Richard Liu, it was in 2007 that he made the decision to move away from third-party logistics services and integrate the entire network, distribution centers and warehouses. In addition to having more control over the quality of the service rendered and differentiating himself from his competitors, Liu’s childhood, who grew up in rural China, made him particularly aware of the demand for access to products. in previously neglected places, such as third- and fourth-tier cities. , as well as rural communities.

The transition was a colossal undertaking, requiring significant capital to hire delivery drivers, purchase land and build warehouses, in addition to requiring a team capable of designing and implementing the ‘infrastructure. Many predicted that the business model would require too much overhead to succeed, but through a commitment to service and a focus on technology, JD’s logistics capabilities proved those assumptions incorrect.

In 2010, JD.com became the world’s first e-commerce company to launch same-day and next-day delivery service, and now covers 99% of China’s population. JD Logistics has the ability to deliver more than 90% of orders the same or next day in 2015 launched a research laboratory to develop intelligent logistics and unmanned technology, and in 2017 JD Logistics was officially established as separate business group. This marked the start of the next phase of development for JD Logistics, as it created another revenue stream by opening up its supply chain and logistics capabilities to third parties and eventually allowing it to go public.

2022 has seen a number of other developments come from the minds of those at JD Logistics. Recognizing the rapid growth of the electric vehicle (EV) industry across the globe, the company’s one-stop service platform, JD Service Plus, has begun offering supply chain solutions for pools charging station, the infrastructure allowing several electric vehicles to be charged at the same time.

Electric vehicle charging station solutions only add to a growing number of services provided by JD Service Plus, including the installation, repair and cleaning of electronic products; appliances and furniture; maintenance of bags, shoes and clocks; and dust mite removal, air quality testing and air purification services, among others.

Providing storage, delivery, installation and after-sales services, JD Service Plus has partnered with some of the world’s leading electric vehicle manufacturers such as Volkswagen, Tesla, Audi, XPeng, Voyah and Aiways for charging pool services. Through his work with these companies, he has increased the efficiency of the regional facility by 15% while achieving a 98% satisfaction rate.

The electric vehicle industry has the ability to make it easier to use fossil fuels, reduce carbon emissions and improve air quality, and JD.com is also committed to a greener future at within its own operations. In 2020, Richard Liu announced that the company’s new mission statement was “powered by technology for a more productive and sustainable world”, and that year he said he intended to reduce its carbon emissions by 50% by 2030.

On March 9, 2022, JD.com announced that the company’s Asia No.1 smart logistics park in Xi’an had been certified as carbon neutral by the China Beijing Environment Exchange and Center Testing International Group, the first to be established in China. . Opened in 2019, the park generates renewable energy for its operations through the use of 100,000 square meters of rooftop solar panels. It has also implemented a number of other green improvements to its sorting and transportation processes, including using distributed air conditioning to heat the building rather than boiler rooms, and implementing new energy in special equipment and terminals.

By the end of 2021, JD Logistics had installed photovoltaic solar panel systems in 13 of its logistics parks and aims to use green energy in 85% of its warehouses over the next three years. The next carbon-neutral warehouse is expected to be Asia’s #1 located in Suqian by 2023.

After a dazzling first year with good results in 2021, JD Logistics has already distinguished itself with its achievements in 2022 an ongoing commitment to JD.com’s overall mission statementworking to use technology and create a world that is both more productive and sustainable.