JD Rolls Out Platform To Improve Supply Chain, Cut Costs

JD.com has rolled out its new Jinghui Digital Supply Chain Platform, which a company blog says will work to provide full-scale digital supply chain support.

The need for supply chain help comes from the evolving complexities of the demand and supply relationship. The pandemic, which made it so that the chain was strained and harder to keep going, has only accelerated the need for improvements.

The blog says the new solution “provides full-scenario solutions for enterprises on supply chain management, especially in the area of supply chain design, supply chain planning and supply chain execution, covering the industries of fast-moving consumer goods (FMCG), automotive aftermarket, home appliance and more.”

JD will aim to boost management of its 6 million SKUs and have around 34 turnover days. The new Jingui product will help improve the chain and lessen costs, the blog says. Jinghui will work with advanced algorithms and a smart decision-making model, offering services from big data, network optimization, intelligent forecasting to intelligent replenishment, allocation and intelligent supply chain execution, according to the blog.

Bing Fu, head of strategy at JD Logistics (JDL), said the JD products would “ensure that we provide scientific supply chain management solutions for enterprises,” the blog says.

JD was able to leverage the Jinghui platform between 24 warehouses and lower logistics costs and turnover days while increasing the online availability for products, the blog says.

In a recent conversation with Karen Webster, Dr. Paul Sheard, senior fellow at Harvard’s Kennedy School, said the initial fears of global lockdowns diminishing supply chains turned out unfounded. And things like working from home and introducing digital currencies could play roles in reshaping how the supply chain works in the future. Working from home could cause companies to reexamine the need for physical space, while digital currencies would be another innovation with new needs to grapple with such as privacy, PYMNTS reports.