JD.com Opens Third Self-Operating Warehouse in California
JD.com, 3/02/23
Chinese B2C e-commerce platform operator and retail infrastructure service provider JD.com (Nasdaq: JD; 9618.HK) has announced that JD Logistics United States, the company's North American logistics arm, recently opened its third self-operating warehouse and distribution center in California.
The new warehouse, together with the company's No.1 and No.2 California warehouses, will create more than 300 local jobs while growing JD.com's California footprint to over 1.3 mln square feet of warehousing space throughout the state.
Joining the company's best-in-class global logistics network, JD.com's new warehouse provides omnichannel fulfillment services for both online and offline orders and is a testament to the company's commitment to utilizing cutting-edge supply chain technology.
"Demand has shifted from the major e-commerce platforms to smaller independent operators, which has led to fragmented supply chains, adding further complexity and challenges to supply chain management, said Gordon Lu, General Manager of JD Logistics United States. "As more and more retailers are shifting from brick-and-mortar stores to e-commerce platforms, retailers continue to sell their products on multiple e-commerce platforms, which requires utilizing multiple warehouses to handle B2B and B2C orders, dramatically increasing their holding costs. This is a challenge JD Logistics is uniquely equipped to solve."
In this new generation of fulfillment, JD Logistics is replicating elements of its world-class logistics operation in China, and bringing those capabilities to address supply chain challenges in North America, Lu explained. This includes providing greater flexibility, inventory optimization, and storage cost reduction to retailers.
One of JD Logistics' warehouses in California utilizes a container transport unit (CTU) robot system. Goods are delivered to the warehouse by trucks, where they're offloaded onto a network of automated conveyors and swiftly scanned, sorted, and stored by fast-moving, self-operating robots. This system allows warehouse employees to wait in designated working stations while the CTUs pick up and drop off goods. Image scanners check the packages in microseconds, while JD's smart logistics system calculates where the packages should be dropped off. The packages are then grouped by region into larger bins, which are picked up by forklifts and brought to the corresponding trucks for delivery to their final destination.
JD.com's CTU system helped increase the number of storage units from 10,000 to 35,000 by making full use of the height of the warehouse and improved operating efficiency by 300%.
In addition to warehousing, JD Logistics United States is among the few third-party logistics companies to provide transfer, last-mile delivery, aftersales and maintenance, cross-border transportation, and other services in one stop. JD Logistics' industry-leading logistics automation capabilities also extend the order cut-off time from the industry average of 2:00 PM to 3:00 PM, giving merchants who work with JD Logistics an extra hour each day to have their same-day orders processed for delivery.
In addition to its three California warehouses, JD Logistics United States also operates two warehouses in New Jersey and one in Georgia, enabling the company to deploy inventory across the country and ensure products are placed closer to end-consumers, further shortening delivery time.
"Two-to-three-day delivery currently covers 90% of our regions, and we're aiming to ensure two-day delivery across the entire country in the future," said Lu. "This will eliminate barriers in the supply chain and enable us to elevate the already best-in-class logistics services we provide to our customers."
JD Logistics (2618.HK) operates over 1,500 warehouses in China, and its international business operates approximately 90 bonded warehouses, international direct mail warehouses, and overseas warehouses globally, covering an aggregate gross floor area of approximately 900,000 square meters with an over 70 percent increase year-over-year.
Keywords: Gordon Lu 2618.HK e-commerce Internet overseas North America logistics JD.com JD JD Logistics 9618.HK USA
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