The warehouse distribution supply chain is "rolled" again. Several giants in the logistics circle began to fight for efficiency, service, and comprehensive cost performance, and fought non-stop. They are catching up with me, constantly upgrading and optimizing the product system based on their own resource capabilities, brands, and operational capabilities, and a new round of war has begun.
Recently, under the condition that competitors vigorously promote the warehouse distribution business, relying on its own resource advantages and the optimization of a series of product structures, JD Logistics has not only exerted its strength in the "hairy crab delivery" market, but also successfully developed the logistics market of "seafood" in Xinjiang.
According to data released by JD Logistics, relying on the country's leading warehouse network facilities and digital intelligence capabilities, JD Logistics has provided services for the warehouse distribution supply chain of hundreds of thousands of enterprises. Including multi-scenario in-depth supply chain cooperation of leading well-known brand enterprises in consumer goods, clothing, 3C, home appliances, home furnishing and other industries.
Industry insiders believe that the warehouse distribution industry is moving from simple price to service cost performance, in this process, leading enterprises must not only improve service experience, but also create product cost performance. Since the beginning of this year, JD Logistics has continued to move in the warehouse distribution market, first launching a new product "e-commerce warehouse" with the main cost performance, and then upgrading the digital intelligence of the commercial warehouse, continuously expanding the number of "211 timeliness" warehouses, improving the coverage rate, and launching "16+8" service in-sale after-sales guarantee measures... Constantly increase efforts in market expansion, and the clarion call of "attack" has been sounded internally.
Upgrade the fist product "Business Warehouse" to create a multi-level product matrix
Nowadays, in online and offline multi-channel business, the difficulty of merchants' supply chain lies more in how to reasonably prepare and replenish goods, and how to improve the efficiency of inventory operation. Especially for large brands, based on brand effect/vitality, supply chain management capabilities, product innovation capabilities, etc., they have gradually become mainstream participants in the platform. Their channels are complex, evolving to omnichannel, one-pallet, the need for supply chain planning is getting stronger, and the requirements for cost and quality are getting higher.
Many brand merchants have raised such questions:
For e-commerce customers of the same scale, why do some merchants only use 10W inventory, but we need 15W inventory? The former only needs 2 people to operate and manage, while the latter requires a small team of 7 people to do daily operations? With the same multi-warehouse operation, why can some cross-regional shipments achieve 10% or even lower, but we have to reach more than 40%?
These gaps are actually determined by the level of inventory turnover control and replenishment behavior. In the past, in the game of sales volume and inventory stocking, most of the preparation and replenishment plans were judged by the operation team's own experience. However, these methodological standards vary from person to person, and the larger the amount of data, the more time-consuming and labor-intensive it will be, and the industry's top customers solidify this part of the management logic into the system, through real-time data to dynamic calculation, it becomes assisted by big data and intelligent algorithms for decision-making.
Specifically, inventory turnover control is through corresponding management tools (turnover data view of each commodity, monitoring of overall turnover, out-of-stock and replenishment reminders, etc.) so that merchants can have a basis in the preparation process, and control the inventory level as much as possible on the basis of ensuring that the inventory is not out of stock.
Dynamic replenishment capacity is professionally calculated and evaluated through demand forecasting and inventory strategies. For example, according to the data of how the demand of each warehouse changes, how long the inventory can be supported, etc., timely replenishment is carried out, which greatly reduces the proportion of cross-regional shipments, thereby reducing costs.
In response to these difficulties and challenges, JD Logistics has upgraded its flagship product - business warehouse this year, and the core highlight focuses on the improvement of the digital intelligence capability of the whole link.
Based on the ability of the value supply chain, JD Logistics uses algorithm simulation to perceive changes in demand and formulate inventory plans, allowing merchants to replenish goods in time according to sales to minimize cross-regional shipments. At the same time, in the process of supply chain execution, continuous monitoring, early warning, error correction and optimization, and continuous dynamic adjustment to ensure that the indicators of the supply chain meet business requirements and continue to improve and improve.
In addition, in order to improve the merchant experience, this upgrade optimizes 16 high-standard service commitments and 8 mandatory compensation commitments, including "timely listing", "24-hour fast delivery", "100% home delivery" and "fast claim settlement" for logistics inbound, in-process, out, return and after-sales.
At the same time, the 16 indicators of the business warehouse are fully transparent and visible, and merchants only need to log in to the Jinghui page (merchant workbench) to view the indicator performance dashboard in real time; In the after-sales process, a special post for exception handling is set up, which simplifies the after-sales processing process, shortens the time for claim determination to 72 hours, and completes the closed loop in 7 days for the whole claim settlement, greatly optimizing the service experience of the after-sales link.
The optimization of service solutions not only brings service upgrades, but also reflects the value of "cost reduction and efficiency increase". Under such a set of combined punches, JD Logistics can not only help merchants shorten the circulation link of goods, increase the proportion of same-day delivery and next-day delivery, but also effectively improve cost efficiency, and ultimately help merchants reduce the difficulty of refined control of the supply chain.
According to the historical average, many key data of the use of digital intelligent warehouse distribution integrated products have been optimized to different extents:
1. Reasonable inventory layout reduces the proportion of cross-regional orders by 21%, increases next-day delivery time by 19%, and reduces delivery costs by 10%;
2. By improving the experience of core indicators such as delivery time and breakage rate, the store score increased by 5% and the sales volume increased by 7%;
Third, through the procurement advice and inventory management strategy driven by big data algorithms, it has brought inventory structure optimization to more than 95% of upgrade customers, and reduced inventory holding costs by 4%.
In addition to upgrading the flagship product "Business Warehouse", JD Logistics has also broadened the product line and layered the product of the warehouse distribution business. For example, the newly launched "e-commerce warehouse" this year is based on the different order needs of e-commerce enterprises for timeliness and services, based on warehouse sources and express delivery service providers to make flexible combination of products, the main focus is on cost performance (1.5 yuan warehouse distribution nationwide from many production and sales places across the country). This move is also seen by many insiders as a move by JD Logistics to develop cross-platform (Douyin, Kuaishou, etc.) to develop the warehouse distribution market for small and medium-sized businesses, and to make a big move in the warehouse distribution market.
Moreover, from the product matrix of JD Logistics' entire warehousing and distribution business, it has formed multi-level and productization capabilities with its rich experience and deep understanding of the supply chain. The product portfolio of business warehouse + e-commerce warehouse covers small and medium-sized pieces, one focuses on high-standard services and one focuses on economy, which can not only open up customer groups from brand merchants, KA-level customers to small and medium-sized businesses, but also extend service capabilities to other e-commerce platforms. At the same time, the corresponding products of large items, warehouses, cold chain medicine, and value supply chain are optimized and combined according to subdivided scenarios, balancing price and experience, and packaging standard products.
Continuous upgrading to create good services: wider coverage and faster timeliness
The warehouse distribution industry pays attention to an efficiency. Specifically, it can be divided into two levels: management efficiency and delivery timeliness. Management efficiency focuses on warehousing and digital intelligence capabilities, and the stronger the digital intelligence capabilities of warehouses, the more obvious the role in the overall supply chain structure. Whether it is investment or breadth of layout, JD Logistics has always been in a leading position among many logistics. Even using logistics companies with technical genes and "wisdom" to describe JD Logistics is not an exaggeration.
The delivery time has the "211 time-limited delivery" service and the end-of-line home delivery support. The data shows that through technologies such as 211 ultra-fast timeliness, high-standard operation services and intelligent inventory full custody, JD Logistics accounts for 90% of the 211+ next-day delivery in 7 branch warehouses, far ahead in the industry's ultra-fast service experience.
Especially in terms of the coverage of extreme timeliness, JD Logistics 211 has covered 221 cities and 1,500 districts and counties across the country. Even during the promotion period, more than 95% of districts and counties across the country have achieved same-day delivery and next-day delivery, and more than 300 cities have achieved minute-level delivery at the fastest.
This achievement is hard-won, and it comes from the stable and solid chassis built by JD Logistics: taking the warehouse as the core, and going deep into every link of the supply chain, and constantly optimizing the whole chain.
The first is to build a leading warehouse network in the country. At present, JD Logistics has operated dozens of "Asia No. 1" large-scale intelligent logistics parks in more than 20 provinces and cities across the country, and the number continues to increase. In the newly built Kunshan Yayi Overall Park (including Phase 1 and Phase 2), the automatic sorting center has more than 80 automatic sorting lines, 10,000 intelligent sorting robots, and the sorting accuracy rate has reached 99.99%, which is the world's largest warehouse-picking integrated intelligent logistics park.
On top of these parks, a multi-level logistics and warehouse distribution network built with more than 1,600 warehouses nationwide as the core promotes the half-day delivery service of "order in the morning and delivery in the afternoon" to the whole country.
The advantage of this flexible and agile warehouse network is that it has the ability to source multi-level inventory. If it is found that there is no inventory in the local warehouse, the optimal order positioning logic across different regional warehouses can be determined through sourcing calculation, and the best route can be calculated by combining various factors such as the cost and timeliness of fulfillment.
At the same time, JD Logistics also designed the logic of cross-regional cross-coverage between regional warehouses, which can quickly switch the coverage relationship of the warehouse network according to business needs in case of emergencies, and other regional warehouses will cover and support it, which greatly improves the flexibility and agility of the supply chain. The relevant person in charge of JD Logistics said, "Flexibility is reflected in flexible network coverage, fulfillment relationship and the logic of order sourcing. Agility is reflected in the ability to switch the coverage relationship of the warehouse network within 30 minutes. ”
In general, having high-standard services, full-link digital intelligence capabilities, product diversification, and taking into account experience and price are the inherent advantages and labels of JD Logistics. Today, JD Logistics has become one of the deepest, widest coverage and best experience enterprises in the "commodity supply chain" in China, which can not only provide solutions from strategy to execution, but also provide integrated landing support of "consulting + technology + operation", and always run through all links of the supply chain.
The deepening of cooperation with many leading enterprises is another verification of its service capabilities.
Author | Little Zhou Botong
Source | Logistics salon
This article is the author's personal opinion and does not represent the position of the logistics salon