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Xinhua Silk Road Database
Economy

Digital and smart supply chain facilitates international logistics

October 17, 2023


Abstract : Today, thanks to advanced internet technology and booming digital trade, consumers only need to tap on their mobile phones to place an order, and specialty products from around the world can be delivered to their doorstep.

More than 2,000 years ago, people crossed grasslands and deserts and opened up the ancient Silk Road connecting the East and the West. After that, resounding camel bells witnessed steady trade development. Today, thanks to advanced internet technology and booming digital trade, consumers only need to tap on their mobile phones to place an order, and specialty products from around the world can be delivered to their doorstep.

With the development of information technology and the deepening of international division of labor, global trade pattern is undergoing profound changes. Over the past few years, global economic uncertainties have increased significantly, not only reinforcing the trend of global online consumption but also promoting the digital transformation of global trade and logistics supply chains. Since the Belt and Road Initiative was proposed, China and participating countries and regions have continued to boost interconnection, providing new options with lower costs and more stable operations for smooth global logistics.

The photo shows JD Logistics' No. 1 warehouse in Warsaw, Poland, in November 2022. (Provided by JD Logistics)

Intelligent solutions help overseas businesses reduce costs and raise efficiency

Customs statistics showed that in the first half of 2023, China's foreign trade exceeded 20 trillion yuan for the first time in the same period in history. China is already the world's largest in terms of cross-border e-commerce retail exports and continues to maintain strong growth momentum. Under the new round of technological revolution and industrial transformation, more and more enterprises are in urgent need of technology-driven rapid response capabilities for their supply chains, as well as flexible logistics service combinations.

In August 2023, JD Logistics opens its second warehouse in Dubai, United Arab Emirates. (Provided by JD Logistics)

JD Logistics' Dubai warehouse, which was opened in August 2022, is located in the Dubai Industrial Park, the core area of industrial development planned by the Dubai government. The logistics center covers an area of 60,000 square meters, with the indoor storage space boasting a construction area of 30,000 square meters. It is only a 20-minute drive from Jebel Ali Port.

Fordeal, an emerging cross-border e-commerce platform in the Middle East, has been developing rapidly. With the help of JD Logistics, Fordeal has established intelligent inventory management and outbound and inbound strategies to make accurate predictions and plans. Through the intelligent consumables recommendation system, Fordeal's order packaging has become more refined and more environmentally friendly. It has been reported that since using the services of JD Logistics' second warehouse in Dubai, Fordeal’s warehousing costs have dropped by 30% compared with its own warehouse operations, the time needed for orders to exit the warehouse has been shortened from 24 hours to 12 hours, and the order processing accuracy has reached 99.5%.

"JD Logistics provided us with customized services, with dedicated personnel handling the warehousing, shelving and exiting of orders. With the help of JD Logistics, the human resource efficiency of Fordeal's warehousing has increased by 100%, while costs have dropped by 30%. This is incredible," said Yun Qing, who is in charge of Fordeal's Dubai warehousing.

On July 29, 2022, people visit JD Logistics’ smart delivery trolley exhibited at China International Consumer Products Expo in Haikou, Hainan. (Xinhua)

The photo shows JD Logistics' No. 1 warehouse in Kuala Lumpur, Malaysia, in May 2022. (Provided by JD Logistics)

End-to-end integrated supply chain benefits international brands

The entry into force and implementation of the Regional Comprehensive Economic Partnership (RCEP) has further promoted the integration of industrial chains, supply chains and value chains in the region. In order to meet the growing cross-border logistics demand after the implementation of RCEP, JD.com has continued to open up its logistics network from Southeast Asia to Australia, the Middle East and other places since 2022 by deploying self-operated overseas warehouses in Malaysia and Vietnam. With the help of JD's trunk line layout and delivery services, more and more cross-border sellers and overseas merchants have achieved efficient operations and sound development.

In Malaysia, more than 1,000 stores of Anakku, a well-known local maternal and infant brand, have used JD Logistics' warehousing and delivery services to enable orders from all channels to be shipped out within 24 hours, and the efficiency of warehousing and delivery has increased by more than 30%. JD Logistics also provides end-to-end logistics services for a number of Chinese brands in Malaysia, completing orders in as fast as 24 hours.

In June 2020, JD Logistics reached strategic cooperation with Touch'n Go, a well-known local electronic payment platform in Malaysia, to provide Touch'n Go with a one-package supply chain solution across all online and offline channels in Malaysia. In response to its card serial number management requirements, JD Logistics uses overseas WMS and LTMS systems to achieve online management, improve efficiency and reduce logistics costs. The warehousing fulfillment efficiency has increased by more than 30%, and the inventory accuracy has been effectively improved, achieving same-day or next-day delivery for B2B and B2C sales in major regions.

At present, JD Logistics is gradually building an efficient and collaborative international supply chain network. Through the extensive application of advanced logistics technology, it continues to help customers at home and abroad achieve cost reduction, efficiency improvement and high-quality development, and provides global customers with high-quality, efficient and comprehensive supply chain services thanks to its digital and intelligent solutions. (By Wu Shuang)

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