Because of the service reputation and other reasons, Jingdong Logistics and SF Express are often compared. At the moment when Jingdong Logistics is about to IPO, this contrast is even more.
however, jingdong logistics and SF express are different in many aspects-although they are increasingly fighting each other in many businesses-at least for the moment, there are still many differences between them. From the mode point of view, SF Express is a typical network mode, while Jingdong Logistics is a warehouse allocation mode. Shunfeng is strong in the trunk line, and Jingdong Logistics is strong in warehousing.
in terms of resources, as of June 31, 2121, SF has 73 all-cargo planes (including 59 self-operated all-cargo planes), with a total of 2,114 air routes. There are about 45,111 self-operated and outsourced trunk and branch vehicles in SF, and about 1 million trunk and branch lines have been opened. In terms of Jingdong Logistics, as of the end of 2121, its self-operated transport fleet includes about 7,511 trucks and other vehicles; It has about 621 air cargo routes and cooperates with China Railway Corporation to use 251 railway routes. In terms of quantity, it is far less than SF. However, as of the third quarter of 2121, Jingdong Logistics has operated more than 811 warehouses with a total management area of about 21 million square meters. Correspondingly, as of June 31, 2121, SF has 194 different types of warehouses (including the New Xiahui Cold Chain Logistics Center) with an area of about 2.34 million square meters. At this point, SF is inferior to Jingdong Logistics.
not only that, in the prospectus of jingdong logistics, SF express was specifically mentioned. Jingdong Logistics said that SF Express is an integrated express logistics service provider, and Jingdong Logistics is positioned as a supply chain solution and logistics service provider. Compared with SF Express, Jingdong Logistics has obvious advantages in warehousing and distribution services, bulk goods logistics services and logistics technology services, and can provide customers with integrated supply chain logistics services.
in fact, the supply chain is also the place where jingdong logistics writes the most in the prospectus. For example, in terms of competitive advantage, three of the six items listed by Jingdong Logistics are directly related to the supply chain, including: the largest integrated supply chain logistics service provider, advanced proprietary technology that enables the whole supply chain, and an open supply chain solution platform that cooperates with students. The remaining three items are: strong operational efficiency drives high service quality, excellent brand image and customer experience, experienced and far-sighted management team and strong corporate culture.
from the financial data, customers' income from the integrated supply chain also accounts for the vast majority of Jingdong Logistics' total income in recent years. For example, as of September 31, 2121, the accumulated revenue of Jingdong Logistics in the first three quarters reached 49.5 billion yuan, of which 79.1% came from customers in integrated supply chain. In addition, integrated supply chain logistics services also contributed an important force to its revenue growth-in the first nine months of 2121, Jingdong Logistics' revenue from integrated supply chain customers increased by 33.8%.
So, what kind of service is the integrated supply chain logistics service, what prospect does it have, and what can Jingdong Logistics do? This paper combs as follows:
11 Growing Market, Unique Position
According to Jingdong Logistics Prospectus, the so-called integrated supply chain logistics service is a market segment and an advanced logistics service in the outsourcing logistics service market. This service is provided by third-party service providers, but unlike isolated supply chain logistics service providers, integrated supply chain logistics service providers have the ability to provide comprehensive logistics services, including express delivery, vehicle and LTL transportation, last mile distribution, warehousing and other value-added services (such as on-site installation and after-sales service), which are provided to customers in the form of integrated solutions to meet their various needs.
among them, inventory management plays a core role in the integrated supply chain solution. Jingdong Logistics also classifies customers according to whether they have used warehousing or inventory management-related services (that is, warehousing and distribution services). All customers who use its warehouse service are classified as integrated supply chain customers. According to the consulting report, according to the total revenue in 2119, Jingdong Logistics is the largest integrated supply chain logistics service provider in China.
not only that, the number of customers in the external integrated supply chain of Jingdong Logistics and the income contributed by individual customers are also increasing. According to the prospectus of Jingdong Logistics, in 2118, the number of customers in its external integrated supply chain was 32,465, which increased to 39,926 in 2119. In 2118, the average income of Jingdong Logistics per external integrated supply chain customer reached 234,157 yuan, which increased to 279 yuan in 2119, 411 yuan.
According to the consulting report, the market targeted by Jingdong Logistics is still full of huge growth opportunities.
From the demand side, the rapid development of digital economy in China and the fragmented, diversified and complicated demand of end consumers urge enterprises to provide more rapid and flexible supply chain logistics services. The characteristics of supply chains in different vertical areas are different, which requires tailor-made integrated supply chain solutions for the characteristics of specific industries.
from the production side, in the past, the efficiency improvement of the logistics industry mainly focused on the distribution side, that is, the transportation of finished products from manufacturers to end consumers. In fact, the manufacturing end still has great potential to improve efficiency. With the help of end-to-end integrated supply chain logistics services, enterprises can achieve efficiency improvement through better raw material sourcing and production planning.
from a technical point of view, every link in the enterprise supply chain has produced a huge amount of data. The analysis of these data can enable enterprises to understand the reasons for inefficient operation more comprehensively and make better business decisions. The integrated supply chain logistics service can cover the supply chain more widely, so that valuable data can be better tracked, integrated and analyzed, thus providing value-added services for enterprises.
in addition, the preferential policies and reforms of the state to improve supply chain efficiency, reduce logistics costs and promote the adaptability of advanced technology applications will also contribute to the development of integrated supply chain logistics services.
based on the above background, we estimate that the market scale of China integrated supply chain logistics service industry will reach RMB 2 trillion in 2121, and it is expected to increase to RMB 3.2 trillion in 2125, with a compound annual growth rate of 9.5%. Moreover, this market concentration is highly dispersed, and the top ten enterprises by revenue in 2119 only accounted for 7.9% of the market share. In the view of Jingdong Logistics, at present, this kind of demand is undertaken by many scattered logistics enterprises in the market, but the service level is seriously insufficient, which brings great opportunities for integrated supply chain solutions and logistics service providers such as Jingdong Logistics.
12 jingdong logistics scheme
in the jingdong logistics prospectus, the demand for integrated supply chain logistics services in many vertical fields such as automobiles, clothing, FMCG, 3C electronics, fresh food, medicine, furniture and household appliances is also introduced.
in terms of growth rate, from 2121 to 2125, the growth rate of logistics expenditure in the integrated supply chain of fresh, fast-moving consumer goods and clothing was ahead, accounting for 18.8%, 14.6% and 12.7% respectively. Of course, the total demand in other fields is not low. By 2125, the demand for integrated supply chain logistics services in automobile industry, 3C electronics industry, furniture and household appliances industry and pharmaceutical industry will increase to 446 billion yuan, 316 billion yuan, 117 billion yuan and 61 billion yuan respectively.
however, the demand for supply chain management varies greatly in each vertical segment. For example, clothing, which has a large number of SKUs, many distribution levels and obvious seasonal characteristics, has to respond immediately to the rapid changes in the taste of end customers, and also faces frequent reverse logistics challenges. The current omni-channel sales model also requires apparel enterprises to manage online and offline inventory flexibly and effectively.
Another example is fast-moving consumer goods. Although it is a necessity of life and the demand is usually stable, the changes of peaks and valleys caused by various promotions also bring great challenges to production and inventory management. In order to achieve higher operating efficiency and inventory turnover rate throughout the year, enterprises need specialized integrated supply chain logistics services to help them predict orders, so as to better manage production and storage. Because of its special category, fresh food needs better cold chain logistics capability and infrastructure to minimize the distance between the origin and the end customers and reduce the number of transshipment.
for this reason, jingdong logistics has developed supply chain solutions for specific industries based on its own supply chain service capabilities. Here, we learn about the solutions of Jingdong Logistics through two types of industries.
1. FMCG
FMCG industry includes many different product categories, such as food and beverage, beauty care, personal care and packaged groceries, and each product category also has its own unique characteristics. But FMCG also has the same characteristics, such as large quantity, low cost, high turnover rate and omni-channel distribution.
jingdong logistics can provide omni-channel inventory management and supply chain optimization solutions for FMCG customers. In Jingdong Logistics' view, the core competitiveness of its supply chain solutions for this industry includes omni-channel inventory management, optimizing inter-warehouse inventory allocation according to business needs, shelf life monitoring, multiple modes of transportation, on-time delivery, dynamic inventory management based on prediction, and bonded warehousing.
For example, in the cooperation with Nestle, Jingdong Logistics can allocate transportation products between Nestle's factories and distribution centers by virtue of its ability to predict market demand in different regions, and deliver products directly to consumers anytime and anywhere, without having to stay in other warehouses or sales channels of Nestle.
in addition, the technical ability of jingdong logistics also enables customers to simplify the inventory management of a large number of SKUs. Jingdong Logistics' solution can also make customers fully understand their own supply chain, such as the quantity of goods available for sale, the geographical location of goods, the remaining shelf life and traceable transportation routes. Customers can also make better business decisions based on the data provided by Jingdong Logistics, thus significantly reducing time and other supply chain management costs.
2. Household appliances and furniture
The particularity of the size, weight and value of household appliances and furniture products makes related enterprises face special challenges in the process of fulfilling their orders. For example, the cost of warehousing and transportation may be high and difficult to optimize; In warehousing, transportation, assembly and installation services, many enterprises need to hire a separate service provider, which brings difficulties to coordinate and control costs. In addition, household appliances and furniture also have the characteristics of industrial agglomeration, and the manufacturing plants are mainly concentrated in a few areas in China.
the solution of jingdong logistics is to build some warehouses near the concentrated areas of home power plants and furniture factories, so that customers can directly transport products to the nearest warehouse of origin, thus minimizing the storage and transportation costs. Jingdong Logistics' intelligent warehouse management system, large-scale distribution network and last mile distribution service can help Jingdong Logistics to better provide comprehensive services to customers in the household appliances and furniture industries, including integrated management of warehouses across sales channels, efficient and low-cost performance and dispatch, and high-quality door-to-door delivery and installation services. In addition, Jingdong Logistics also provides after-sales service. From the factory to the door-to-door, assembly and installation services and after-sales service, end-to-end supply chain solutions and logistics services such as Jingdong Logistics can greatly reduce the management and performance costs of customers.
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It is not difficult to find that many preconditions are needed to give the above-mentioned industry solutions, such as having certain infrastructure, corresponding networks, corresponding scientific and technological capabilities, and being clear about customer needs and relevant experience. The reason why Jingdong Logistics can do it lies in its special growth background.
firstly, jingdong logistics originated in JD.COM group. although it has changed from enterprise logistics to logistics enterprise, it is closely related to business flow. it not only has stable e-commerce orders, but also can go deep into business flow, even more upstream. it has accumulated proprietary technology and professional knowledge, gained a deep understanding of business flow, and designed and developed a comprehensive and integrated logistics network. From the results, Jingdong Logistics assisted JD.COM Group to keep the inventory turnover days below 41 days. In 2121, about 91% of online retail orders handled by JD.COM Group through Jingdong Logistics Network can be delivered on the day of placing the order or the next day.
secondly, jingdong logistics has established a stable and diverse infrastructure. Intelligent storage facilities, represented by Asia No.1, have laid the foundation for efficient inventory management. The highly-covered and highly-coordinated warehousing network, integrated transportation network, distribution network, bulky network, cold chain network and cross-border network not only guarantee the ultimate experience of Jingdong logistics export, but also enable it to meet all customers' supply chain needs in one stop. By reducing the handling times and shortening the distance between goods and consumers, it not only improves the timeliness, but also brings the warehousing demand of customers' goods, which also provides help for them to better carry out warehousing supply chain services.
thirdly, strong supply chain technology. The traditional single supply chain logistics service is still labor-intensive and its automation level is relatively low. Because the business scope of a single supply chain logistics service provider is narrower, the use of data insight is limited. Comparatively speaking, Jingdong has more comprehensive logistics coverage, deeper insight and, of course, greater investment in technology. In addition to the well-known cases in the industry such as Asia No.1 and unmanned warehouse, Jingdong Logistics continues to improve its capabilities in automation, digitalization and intelligent decision-making by adopting underlying technologies such as 5G, artificial intelligence, big data, cloud computing and Internet of Things. Like intelligent algorithm, it can also achieve efficient collaboration and * * * enjoyment, and realize intelligent decision-making in the fields of sales forecasting, commodity distribution planning and supply chain network optimization.
fourth, an increasingly rich customer base. By 2121, Jingdong Logistics has provided services to more than 191,111 corporate customers, covering a wide range of industries such as FMCG, clothing, home appliances, furniture, 3C, automobiles and fresh food. By September 31, 2121, the number of customers serving Jingdong Logistics Integrated Supply Chain reached 46,111. This large number of customers with diverse fields, on the one hand, deepened Jingdong Logistics' understanding of different industries, thus developing and perfecting more efficient supply chain solutions, on the other hand, improved the utilization efficiency of Jingdong Logistics' infrastructure and the ability of business operation. With the deepening of cooperation, the relationship between Jingdong Logistics and related customers has become closer and closer, creating a strong brand image. The future potential of Jingdong Logistics also depends to a great extent on the growth of external customers.