Chinese e-commerce company JD.com has introduced a new supply chain innovation initiative as part of the company’s Retail as a Service (RAAS) strategy.
The programme will leverage offline retail outlets to expand the availability of goods to shoppers and enhance the overall efficiency of the supply chain.
According to the company, the new programme will allow offline channels to deliver orders directly by eliminating the need for the product to pass through traditional warehouses, distribution centres and delivery stations to reach the customer.
The programme will allow the online retailer to increase efficiency by integrating various offline channels, such as supermarkets, convenience stores, other brands’ offline stores, and crowdsourced delivery company Dada-JD Daojia.
JD.com expects to deliver customers’ orders in 30 minutes even though the average delivery is two hours.
JD FMCG president Carol Fung said: “We’re shortening the supply chain by empowering offline retail channels to fulfil orders directly, rather than having to go through warehouses.
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“The fact is a lot of products, especially ones that we need and those we use every day, are already in nearby stores, but they are delayed by going through the many links of the traditional supply chain.
“This programme cuts out unnecessary steps, improving efficiency for retailers, maximising resources, reducing costs, and improving customer experiences.”
The new programme builds on JD.com’s advanced inventory integration project with Walmart, announced in July 2017.
This inventory integration programme with Walmart has seen the addition of various firms such as Better Life, Nongfu Spring, Nestlé, Coca-Cola, Tsingtao Beer, and liquor retailer 9bianli.