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Now, at Jingdong, Laotian rice not self-run by Jingdong can be delivered on the same day
Technology white rice
During this Double-Eleven sales promotion activity, Jingdong caught people’s eyes by a sales revenue of more than RMB100 billion, and Jingdong Logistics was widely acknowledged by retailers. Particularly in consumer goods, Jingdong Logistics works with a large number of merchants and generates huge commercial values by innovation and optimization of storage and distribution.
Industry of consumer goods is featured with low price, low gross margin, large inventory and high turnover. Therefore, a reasonable amount of inventory has a direct influence on business operation of consumer goods. Too less stock may easily result in less and insufficient supply during the sales process and hence cause lost business opportunities, while too much stock may cause overstock; as a result, the cost of storage increases. Jingdong Logistics provides the retailers with a perfect solution by optimizing supply chain and enabling a highly-efficient inventory turnover.
With regard to this matter, the reporter visited a retailer in Hunan – Hunan Xuanye Ecological Agriculture Development Co., Ltd., which is a company mainly engaged in business of Laotian rice. A head of business operation in this company said, ‘Jingdong has provided a lot of advice on storage and inventory and instructed us to calculate inventory on a reasonable basis. By doing so, we not only save our logistic cost, but also speed up our delivery and improve our level of service for consumers.’
The head of business operation also said, ‘We focus on two factors when we choose Jingdong Logistics. One is timeliness of delivery. Quick delivery brings returned customers. The other is throughput. Cooperation in logistics business can bring us more business opportunities. For us, this is more like killing two birds at one shot.’
The said head also expressed, ‘Business is business. We have to be realistic when we do business. We would like to cooperate with whoever can make our business bigger and better. We listed more than a dozen of logistics suppliers on the blackboard for all staff to vote for. Finally, Jingdong Logistics got the most votes.’
Cooperation started in September this year when Hunan Xuanye put rice into the warehouse of Jingdong Logistics in Wuhan with a mentality of just having a try. Finally, Hunan Xuanye came to see the benefits during the Double-Eleven activity. Unexpectedly, fast moving consumer goods of low price like rice were able to be delivered on the same day or the next day in many areas in Central China, with page view at front end doubled. Then after the Double-Eleven, Hunan Xuanye terminated the cooperation with other two logistics suppliers and sent its rice directly to the seven warehouses of Jingdong Logistics all over China.
There were many other retailers in daily chemicals, personal care, grain and oil, and beverage, who moved more of their goods to Jingdong warehouses after Double-Eleven, just like what Hunan Xuanye did during the Double-Eleven. However, Jingdong Logistics has provided a series of customized industry solutions including warehouse sharing, VMI and dynamic pledge according to the features and variance of supply chain in different industries such as clothing, 3C and household appliances.