Retailing, Franchising, and Consumerism Business Intelligence in China

JD Plans To Cooperate With 20,000 Retail Stores To Shorten Delivery Time

To accelerate delivery speed, JD plans to implement a supply chain innovation and enhance cooperation with more physical stores.

The e-commerce giant plans to cooperate with 20,000 offline retail stores in 54 cities across China, including 175 Wal-Mart supermarkets. With the cooperation, JD expects to deliver products to consumers via various offline retail stores, so as to shorten its delivery time to about 30 minutes.

Feng Yi, president of JD's fast consumer products division, said that it is a new measure to improve JD's supply chain overall efficiency. Feng said that this program removes unnecessary links, improves retailer efficiency, and maximizes resource utilization, which can lower costs and improve customer experience.

This program applies AI algorithm to measure the distance between customers and retail stores, JD's warehouses and delivery centers. If the distance between customers and retail stores is shorter, the AI system will ask retail stores to deliver the products directly.

JD said that the average delivery time of this program is two hours and the products can be delivered to customers within 30 minutes the soonest. Brands that participate in this program are expected to see improvements in store traffic and turnover.

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