For e-commerce to get involved in logistics is almost an inevitable choice. When e-commerce lands, logistics is an unavoidable key link in connecting online and offline. Data from the statistics bureau shows that in 2016 online retail sales reached RMB 5.2 trillion, up 26% year on year, and express parcel volume grew by more than 50%. Alibaba, which relies on selling traffic for profit, and JD.com, which relies on selling goods to make money, share a surprisingly consistent idea for the second half of e-commerce — competing to become a logistics platform.
Building the Beijing and Jinan dual logistics centers
The so-called "Beijing-Tianjin-Hebei logistics integration" means that JD.com, on the basis of its existing logistics network, will continuously optimize its warehousing layout and further improve its logistics service capability, providing integrated services for merchants and society, so that logistics resources in the Beijing-Tianjin-Hebei region connect seamlessly and a single large logistics network operates in an integrated way across the region.
It is understood that by the end of 2016, JD.com operated 11 large warehouse clusters and 67 medium and small warehouses in North China's four provinces and two municipalities, with warehousing facilities covering an area of more than 1.4 million square meters; it had more than 2,000 delivery stations, including nearly 1,200 self-operated stations, 190 JD Campus Delivery points, 340 JD Bang outlets, 384 rural service centers, and more than 5,000 convenience service points.
In order to better realize the rapid circulation of resources within the region and promote the integrated development of logistics, JD.com has, outside its Beijing logistics center, built Jinan into the second large logistics center in North China. In the future, the Jinan logistics center will stand parallel to the Beijing logistics center, covering all of Shandong Province, southern Shanxi and southern Hebei, at which point the logistics service capability and timeliness in the Beijing-Tianjin-Hebei region will be greatly improved.
Tang Wei, Vice President of JD Group and head of the logistics open business department of JD Mall, revealed that JD Logistics recently opened more than 40 new direct trunk lines nationwide dedicated to serving merchants, comprehensively improving routing timeliness, and added 23 cities supporting door-to-door pickup, including Baoding, Xingtai and Langfang in North China, and Linyi and Tai'an.
Building an integrated e-commerce service in the Beijing-Tianjin-Hebei region
Next, JD's North China region will optimize the layout of its terminal logistics network and improve the service level of open logistics, so that merchants and consumers in North China obtain the same customer experience as consumers in first-tier cities, thereby realizing "Beijing-Tianjin-Hebei service integration."
Through its self-built warehousing and distribution logistics network layout, JD Logistics already has three large networks — small and medium item logistics, large item logistics and cold chain logistics — comprehensively covering warehousing, transportation, distribution, customer service and after-sales, providing merchants with logistics service products integrated across online and offline, multiple platforms, all channels, the full life cycle and the full supply chain.
Tang Wei said that in 2017, JD will devote itself to building five product lines: the integrated business product line, the large item business product line, the global shopping bonded business product line, the fresh food business product line and the reverse logistics product line.
Merchants' sales performance grows rapidly
At the end of last year, JD Logistics fully opened to third-party merchants, and all kinds of enterprises can adopt JD Logistics' warehousing and distribution services. At present, the number of merchants in North China that have reached in-depth cooperation with JD is growing rapidly. It is understood that more than 9,000 merchants in North China have carried out express delivery cooperation with JD, and the number of customers in warehousing-distribution integrated cooperation exceeds 1,000. Data shows that through cooperation with JD, merchants' average inventory turnover days were shortened by 8 days, average delivery timeliness was shortened by 2 days, average merchant sales increased by 87%, and the average satisfaction of cooperating brand customers increased by 113%. "JD Logistics has provided merchants with value-added services that improve store traffic and sales conversion rates, such as JD Delivery labeling and cash on delivery. JD's logistics services have effectively helped merchants improve their selling power, realizing the promise of delivery driving transactions," said Shao Jiwei, Vice President of JD Group and General Manager of JD Mall's North China regional branch.
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