Recently, Zheng Hongyan, Vice President of JD Group and President of JD Mall's New Channel Business Unit, announced that JD New Channel will launch a new joint warehouse and distribution system to comprehensively upgrade channel efficiency. As the only company in the world with six logistics networks covering small/medium items, large items, cold chain, B2B, cross-border, and crowdsourcing, JD Group accelerated the deployment of its fourth logistics network—B2B logistics—in 2017 to better meet B-end order demands. To adapt to the rapid growth of small B business, under the principle of 'integrated openness' and with the goal of restructuring the 'cost, efficiency, and experience' of the channel, JD New Channel is introducing a new warehouse and distribution solution, co-building a 'joint warehouse and distribution' system with brand owners and channel distributors as a supplement to JD's existing B-end exclusive logistics. Supply Chain Upgrade: Building an Open and Efficient Joint Warehouse and Distribution System Tang Bo, General Manager of the Terminal Business Department of JD Mall's New Channel Business Unit, introduced that JD New Channel will partner with small and medium distributors and wholesalers, integrating their existing warehouse and distribution resources as joint warehouses and delivery networks for the new channel. Brand owners are also welcome to connect their channel and warehouse resources to the New Channel online platform, enabling multi-party openness and integration to maximize channel efficiency. It is reported that the joint warehouse and distribution system has 'greater density, wider coverage, and deeper penetration.' Qualified 'joint warehouses' (meeting criteria for goods, storage, vehicles, and personnel) will join JD's Zhanggui Bao as third-party merchants, supplying and delivering to retail stores within a 3-5 kilometer radius. The project covers major cities nationwide, reaching down to the town level, and will first be implemented in categories with high frequency and high service demand, such as grain and oil, beverages, and milk. The essence of the joint warehouse and distribution system is to upgrade retail infrastructure based on 'knowing people, knowing goods, and knowing the scene,' leveraging the strength of brand owners, small and medium distributors, and wholesalers to effectively improve delivery efficiency, expand the achievable scope of last-mile delivery, enhance user experience, and fully release the potential of the entire channel. After the joint warehouse and distribution system is officially operational, high-frequency and high-service-demand products will be shipped and delivered from joint warehouses; low-frequency and slow-moving products will be shipped from JD's central warehouses, transferred to joint warehouses via JD Logistics, combined with high-frequency and high-service-demand products, and then uniformly delivered to stores. Multi-party Empowerment: Releasing the 'New Value' of FMCG B2B The launch of JD New Channel's joint warehouse and distribution system will reconstruct cost, efficiency, and experience from multiple dimensions, bringing new value to brand owners, channel distributors, and retail stores, and comprehensively empowering industry partners. For brand owners, they can share the channel and warehouse resources on the platform, expand their market coverage and penetration depth, and compensate for weak offline presence in certain regions. At the same time, accessing the New Channel joint warehouse and distribution system follows brand owners' offline pricing principles, making the channel more transparent and controllable, conducive to forming a healthier product price system. Additionally, extensive distribution channels and full-chain data feedback help brand owners more accurately grasp the overall business picture and make more effective decisions. Small and medium distributors and wholesalers becoming partners of JD New Channel will gain broader business sources, not only earning additional delivery income but also expanding their product categories. While stabilizing existing old customers, they can serve and expand new users of Zhanggui Bao, eliminating off-season concerns throughout the year and maximizing the efficiency of personnel, vehicles, warehouses, and capital. Finally, retail stores' purchasing experience will be greatly improved: reduced product damage rates, centralized delivery and unified inventory checking to improve work efficiency, and access to a richer variety of high-quality goods backed by JD. The arrival of the borderless retail era has not changed the essence of retail: cost, efficiency, and experience. Improving supply chain efficiency is an important step in embracing the retail revolution. Under JD's 'integrated openness' strategy, JD New Channel will continue to upgrade retail infrastructure and channel efficiency with a more open attitude, working with brand owners, channel distributors, retailers, and consumers to create a complete borderless retail landscape. Source: Ebrun