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Technology Worship of Jingdong Logistics
the speed of jingdong logistics is very eye-catching in this war to cull the new coronavirus.

on January 25th, 22, a batch of important materials needed to be sent from Guangzhou to Wuhan quickly, and Jingdong Logistics sent them to the warehouse of Wuhan Fourth Hospital in only 17 hours.

On January 26th, another batch of medical supplies was sent from Jiangsu to Wuhan, and Jingdong Logistics completed the task in 11 hours.

during the spring festival holiday, when most logistics companies are on holiday, jingdong logistics delivered 4 tons of relief materials to Wuhan in just a few days.

there is no doubt that the social effect of jingdong logistics has played an advantage.

this makes us have to re-examine jingdong logistics. At one time, it was questioned by the outside world for 12 consecutive years of losses; Today, it has continuously demonstrated its superior combat effectiveness in the logistics industry after reversing its losses.

the breakthrough of jingdong logistics has verified a business philosophy of "thinking ahead rather than stopping at one thought": the only way to win a battle is to move forward, and never stop while thinking.

so, what exactly is the nuclear weapon that jingdong logistics turned over?

JD.COM's nuclear weapons are technology.

as you may not know, there are two main reasons why logistics is regarded as an asset-heavy industry: warehousing construction and technology investment. It is the continuous land acquisition and warehouse construction in the early stage and the technical layout at no cost in the later stage that made Jingdong Logistics carry a pot with a loss of 12 years.

Some people may have a vague concept of technology investment and don't understand why technology is so "burning money", so let's see how obsessed JD.COM is with technology.

In p>212, JD.COM established the first e-commerce operation center in East China, which integrates the functions of temporary storage, order processing, sorting and distribution. This is the predecessor of "Asia No.1". Since then, JD.COM has successively built 25 No.1 intelligent warehouses in Asia, and smashed a national intelligent logistics park with technology.

We take Dongguan "Asia No.1", which was put into use in 219, as an example, and we can see it from the inside.

In a 5,-square-meter warehouse, 2 million pieces of medium-sized goods are neatly packed on containers more than 2 meters high. Surprisingly, the access to these goods requires almost no human participation.

the goods are sent to the automatic transfer port, and then sent to the 22-meter-high stacker by the conveyor belt, and the stacker puts it in the pre-planned position according to the warehousing information.

after the user places an order, the goods automatically enter the conveyor belt again, are packed and sorted by the robot, and are sent to different distribution stations for loading. This highly automated operation greatly improves the logistics speed, and its efficiency is dozens of times that of traditional manpower.

In addition to Asia No.1, JD.COM has also hatched seven technology-driven projects, such as Cloud Box and Jingxiaocang, and technological innovations such as on-chain signing and intelligent vision center have also been put into commercial use.

Of course, technical talents are even more popular in JD.COM. In 219, JD.COM invested 1 billion yuan in talent development, and it is thirsty for technology. So far, there are over 2,8 technicians in Jingdong Logistics, including nearly 1 doctors.

after two years of independence, jingdong logistics has also invested in more than a dozen technology companies, including kingdee, weilai, express 1 and other star enterprises, spanning software, hardware, internet platform and other fields, and obtained thousands of technology patents. By investing to fill the shortcomings, Jingdong Logistics has basically completed the ecological layout-these are all real money.

With the promotion of Jingdong Logistics, the retail mode in JD.COM has changed from people looking for goods to people looking for goods, and from selling goods to selling services. Once a commodity was delivered to consumers, the process was very complicated. Now, through technology, the commodity can reach consumers in the shortest time, and the shopping experience is greatly improved, which is inseparable from the blessing of technology.

For example, we only know that Huawei and Ali are well-versed in the way of becoming famous, but little is known about JD.COM's Xuanwu system, Qinglong system and Bohai system. Qinglong system uses deep neural network, machine learning and other technologies, subverting the traditional delivery mode of waiting for a single order. It can be said that the reason why JD.COM can guarantee the "211" deadline is Qinglong intelligent distribution system.

On August 18th, 27, JD.COM established the first express delivery station in a residential area in Dongpanjiayuan, Beijing, announcing the birth of Jingdong Logistics, and it has been the birthday of Jingdong Logistics since August 18th every year.

Liu Qiangdong attaches more importance to logistics than anyone else. As long as logistics is short of money, he will stand up at the first time. At the most difficult time in JD.COM, Liu Qiangdong finally got an investment of 3 million US dollars, and as a result, he spent every cent on logistics.

in more than 12 years, JD.COM has invested more than 1 billion yuan in logistics. With doubts and criticisms, it has painstakingly carried forward and fought back everything with its achievements.

as we all know, the shopping experience of e-commerce is not only quality but also speed. In 219, Jingdong Logistics continued to be fast and unbreakable, improving efficiency through technology, and constantly optimizing network timeliness. It achieved 24-hour delivery in 88% of townships across the country.

While the satisfaction of merchants and individual users both reached new highs, more and more customers gave logistics business to JD.COM in the process of cooperation, and many people also chose JD.COM's technical services, which formed a benign closed loop: fast speed, good service, good service for many users, high cost and low income for users, and high income brought about increased speed of technical input.

Please take a look at a set of data:

In p>219, the external revenue of Jingdong Logistics accounted for more than 4%, the revenue achievement rate was 13%, and the overall profit achievement rate was 178%, which exceeded the expected revenue and profit targets, indicating that more and more users used Jingdong Logistics;

In the first three quarters of 219, the performance rate of Jingdong Logistics was 6.4%, which was .7 percentage points lower than last year. In the first three quarters of 219 alone, logistics saved 2.7 billion performance fees for JD.COM.

in terms of business, the B2B business of JD.COM cold chain increased by more than 1 times compared with Q1 in June 18, 219, the daily average volume of express aviation parts increased by 627% compared with 11.11 last year, the volume of B2B business increased by 354% compared with the same period of last year, and the volume of cloud warehouse orders increased by 13 times.

in addition to reducing costs and increasing efficiency, technology also indirectly drives the income of JD.com Express Brother. By the end of 219, the number of frontline employees with an average monthly income of over 2, in JD.com Logistics increased by 225% year-on-year, which is unique in the logistics industry.

in August, 219, Liu Qiangdong disclosed in the Q2 219 earnings conference call that Jingdong Logistics has achieved breakeven after years of layout, which means that it has taken off the loss hat for 12 years in one fell swoop.

"It's unexpected to win or lose a military plan, and it's a man to be ashamed." Jingdong logistics, which is brave after knowing shame, launched a fierce attack, even afraid of itself!

JD.COM's investment in technology, regardless of cost, has made it taste the effect of taking precautions in at least two aspects.

First of all, after 3 to 4 years of high-speed growth, China's economy is now under great downward pressure, which means that the growth of enterprises will rely more on the improvement of their own efficiency. JD.COM's technological advantages undoubtedly make it easier to win the economic turning point.

Secondly, according to Ministry of Human Resources and Social Security's prediction, by 235, the labor force in China will be reduced by 1 million compared with the current situation, and the domestic labor market will face enormous challenges, which means that technology-driven enterprises will be able to handle it with ease in the future.

After the initial test, Wang Zhenhui, CEO of Jingdong Logistics, proposed at the annual meeting that in 22, Jingdong Logistics will focus on three major directions: "solid capacity, technology-driven, and daring to break new paths". Consolidate chassis capacity, drive efficiency improvement and business growth with data and technology, speed up development, find new growth points, and store energy for sustained high-quality growth.

in addition to the direction, jingdong logistics has promoted technology as the underlying driving force to the core development strategy. from 22, the core strategy of jingdong logistics has been officially upgraded from "experience-based, efficiency-winning" to "experience-based, efficiency-winning, technology-driven". The newly added "technology-driven" strategy is not only an affirmation of Jingdong Logistics' investment in the past 12 years, but also a prospect for its future layout.

At the annual meeting, Wang Zhenhui also expounded the dream of Jingdong Logistics in three development stages after its independence:

From independence in 217 to the end of 219, Jingdong Logistics has realized the transformation from enterprise logistics to logistics enterprise, and the dream of the first stage has been basically completed;

in the second stage, jingdong logistics will continue to optimize customer experience, improve industrial efficiency and maintain high-quality growth, and will become the top supply chain logistics enterprise in China within three years;

in the third stage, jingdong logistics will continue to strengthen its technology drive and become the world's leading supply chain logistics enterprise.

we can see that technology is the foundation of Jingdong Logistics at any stage. After JD.COM's strategic transformation into the deep water area, the technology-blessed Jingdong Logistics, like a train head with full stamina, is accelerating on the road of bumper harvest.

it's like iron that Xiongguan is full of roads! Let's praise Jingdong Logistics. From the king of losses to the logistics benchmark, it has run a path and proved to the world that science and technology will always be the primary productive force. If we choose the right direction and invest unswervingly, we can reap success.

author: Feng Qing