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China's biggest retailer brings 'retail as a service' model to CES trade show. China's largest retailer, JD.com, has built a 'massive smart logistics infrastructure' to serve its 300 million e-commerce customers, and is now opening that system up to brand partners and other retailers, the firm said in a release on Saturday. Calling itself the world's, the firm has leveraged its enormous reach to develop a physical network of fulfillment and transportation that it is offering for commercial use through the 'retail as a service' (RaaS) strategy it unveiled in 2018. Although that huge network currently operates primarily in China, this week as it attends for the first time ever the Consumer Electronics Show (CES), the glitzy Las Vegas trade show that offers an annual look at the latest retail technologies, products, and services. 'As China's largest retailer, JD is in the unique position of being able to research and develop, and commercially deploy, innovative new technology that is shaping the future of shopping worldwide,'. 'As JD opens its technology up to other companies and industries, the features that we've already rolled out in China from automated warehouses to virtual shopping are going to be enjoyed by consumers everywhere.' Launches smart delivery stations in China ahead of debut. Read more: — JD.com (@JD_Corporate) By enlisting other retailers to use its fulfillment network, JD could be following a similar path to Seattle-based online retailer Amazon.com Inc., whose (3PL)-type services and helps the company achieve greater economies of scale and leverage lower prices from business partners.
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The young, Beijing-based company started in 1998 as an offline electronics retailer, launching its online business in 2004. At that time, China didn't have well-developed logistics infrastructure, so JD decided to develop its own nationwide, in-house logistics network, the firm said. Today, that network can deliver over 90 percent of orders same- or next-day, and covers 99 percent of China's population, according to JD.com. As an example of its advanced fulfillment capabilities, JD.com said Saturday it has launched two autonomous logistics facilities in the Chinese cities of Changsha and Hohhot, saying these 'smart delivery stations' are using autonomous vehicles to perform last-mile delivery. The stations house fleets of delivery robots carrying up to 30 parcels each inside compartments similar to the banks of lockers stores. However, JD's lockers are mobile instead of stationary, steering themselves to addresses within a 3.1-mile radius with features including route planning, obstacle avoidance, and traffic light recognition. Upon arrival, they use facial recognition technology to ensure the person claiming the parcel is the correct consumer, JD said.
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Running at full capacity, these delivery stations can deliver up to 2,000 packages a day. Want more articles like this? Sign up for a free subscription to Supply Chain Executive Insight, a monthly e-newsletter that provides insights and commentary on supply chain trends and developments. We Want to Hear From You!
We invite you to share your thoughts and opinions about this article by sending an e-mail to?Subject=Letter to the Editor: Quarter: JD.com says its fulfillment technology will support 'boundaryless' shopping for other retailers'>. We will publish selected readers' comments in future issues of CSCMP's Supply Chain Quarterly. Correspondence may be edited for clarity or for length.