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УДК 658.7(510):330.47 JEL М11
DIGITAL LOGISTICS CONCEPT IN CHINAS PERSPECTIVES OF PLATFORM ECONOMY
Zhang Wenye postgraduate student, e-mail: [email protected], Graduate School of Service and Trade, Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation.
Barykin S.E. Doctor of Economic Sciences, Associate Professor, professor, e-mail: [email protected], Graduate School of Service and Trade, Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation.
Kapustina I. V. director, e-mail: [email protected], Graduate School of Service and Trade, Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation.
Abstract. China's digital economy is at the forefront of global development, with artificial intelligence (AI) technology playing a critical role in supply chain management for the B2B industry. In this context, the distribution link is the most crucial part of the entire logistics and distribution process, involving placing orders for consumers, precise scheduling and control of warehousing, and other critical processes. Given the increasing demands for efficiency and precision in supply chain management, the use of AI and intelligent warehouses has become an inevitable trend in the logistics industry. Despite the rapid development of China's digital economy, there is still a research gap concerning the application of AI in the distribution link of supply chain management. Specifically, research has not focused enough on the development of intelligent warehouses and their integration into supply chain management. Therefore, this study aims to explore the feasibility and effectiveness of integrating AI and intelligent warehouses in the distribution link of supply chain
management. By examining the current state of supply chain management in China and identifying the challenges and opportunities facing logistics enterprises in the digital era, the study aims to provide insights into the potential benefits and challenges of incorporating AI technology and intelligent warehouses into the distribution link. Future research in this area could explore the potential applications of AI in the distribution link, identify the critical success factors for integrating intelligent warehouses into supply chain management, and investigate the potential impact of intelligent warehouses on logistics performance, customer satisfaction, and overall supply chain efficiency. Additionally, further research could focus on the impact of the COVID-19 pandemic on the development of intelligent warehouses and the digital transformation of the logistics industry as a whole.
Keywords: E-commerce, JD logistics, digital logistics, AI technology, B2B industry.
КОНЦЕПЦИЯ ЦИФРОВОМ ЛОГИСТИКИ В КИТАЙСКОЙ НАРОДНОЙ РЕСПУБЛИКИ В КОНТЕКСТЕ ПЕРСПЕКТИВ ПЛАТФОРМЕННОЙ ЭКОНОМИКИ
Чжан Вэнье аспирант, e-mail: [email protected], Санкт-Петербургский политехнический университет Петра Великого, г. Санкт-Петербург, Российская Федерация.
© W. Zhang, S. Barykin, I. Kapustina, 2023
Барыкин С. Е. д-р экон. наук, доцент, профессор Высшей школы сервиса и торговли, e-mail: [email protected], Санкт-Петербургский политехнический университет Петра Великого, г. Санкт-Петербург, Российская Федерация.
Капустина И. В. Директор Высшей школы сервиса и торговли, e-mail: [email protected], Санкт-Петербургский политехнический университет Петра Великого, г. Санкт-Петербург, Российская Федерация.
Аннотация. Цифровая экономика Китая находится в авангарде глобального развития, а технология искусственного интеллекта (ИИ) играет критически важную роль в управлении цепочкой поставок для промышленности, устроенной по принципу B2B. В этом контексте дистрибьюторское звено является наиболее важной частью всего процесса логистики и распространения. Она включает в себя размещение заказов для потребителей, точное планирование и управление складским хранением и другие процессы высокой значимости. Учитывая растущий спрос на эффективность и точность управления цепочкой поставок, использование ИИ и «умных складов» стало неизбежной тенденцией в логистической отрасли. Несмотря на стремительное развитие цифровой экономики в Китае, в исследованиях применения ИИ в дистрибьюторском звене управления цепочкой поставок все еще существует некоторый пробел. В частности, исследования не в достаточной мере фокусировались на развитии умных складов и их интеграции в управление цепочкой поставок. Поэтому данное исследование нацелено на то, чтобы изучить техническую реализуемость и эффективность интеграции ИИ и умных складов в дистрибьюторское звено управления цепочкой поставок. Изучая текущее состояние управления цепочкой поставок в Китае и выявляя возможности и трудности, с которыми логистические предприятия сталкиваются в цифровую эпоху, это исследование пытается предоставить ин-сайты потенциальной выгоды и трудностей с включением технологии ИИ и умных складов в дистрибьюторское звено.
Дальнейшие исследования в этой области могли бы рассмотреть потенциальное применение ИИ в дистрибьюторском звене, выявить критически важные факторы успеха интеграции умных складов в управление цепочкой поставок и изучить потенциальное влияние умных складов на производительность логистики, уровень удовлетворенности клиентов и общую эффективность цепочки поставок. Кроме того, дальнейшие исследования могли бы сфокусироваться на влиянии пандемии COVID-19 на развитие умных складов и цифровую трансформацию логистической отрасли в целом.
Ключевые слова: электронная коммерция, JD Logistics, цифровая логистика.
► Introduction. In the 1980s, Peter Drucker, a renowned management guru, introduced the concept of the "economic chain," which included the calculation of "economic chain costs" (New Directions in Supply Chain Management, n.d.). Drucker used Toyota, a manufacturer, as an example of a company that had mastered and controlled costs upstream and downstream of its industrial chain. Toyota was able to combine the costs of suppliers and sellers with its manufacturing costs into one cost stream, which allowed for analysis of the costs of associated upstream and downstream enterprises with the lowest cost and optimal efficiency, resulting in informed judgments and decisions. Drucker's earliest description of the concept of the supply chain emphasized that it is a network structure centered around the enterprise, connecting the upstream, middle, and downstream of the supply chain, starting from production and
ending with the end-user. This network connects all supply chain subjects into a unified whole, revealing that the supply chain is a composition of multiple subjects and multiple links that are organically integrated. This concept highlights the importance of viewing the supply chain as a single entity and optimizing the efficiency of all parties involved.
The digital transformation of China's economy has been accelerating in recent years, and the logistics industry is no exception. With the development of cloud computing, big data, artificial intelligence, and the industrial Internet, the logistics industry has entered a new stage of development. In this context, the use of artificial intelligence technology in supply chain management is becoming increasingly popular, particularly in the distribution link. As the most critical link in the entire logistics and distribution link, the distribution link needs to place orders for consumers, precise scheduling and control warehousing, and other processes. Based on this, intelligent warehouses will become an inevitable trend in the field of supply chain management, and it is imminent further to strengthen the informatization construction of Chinese logistics enterprises.
However, there is still a research gap regarding the implementation and adoption of intelligent warehouses in the Chinese logistics industry. This study aims to address this gap by examining the current state of intelligent warehouses in China's logistics industry, the challenges that enterprises face in adopting intelligent warehouses, and the potential benefits of intelligent warehouses in supply chain management. This study also aims to explore future research topics that could further enhance the development of intelligent warehouses in China's logistics industry, such as the integration of artificial intelligence and the Internet of Things in intelligent warehouse systems, the optimization of intelligent warehouse
layouts, and the exploration of new business models and value creation mechanisms in the context of intelligent warehouses. By addressing these research topics, we can gain a deeper understanding of the potential of intelligent warehouses in improving the efficiency, transparency, and sustainability of China's logistics industry, and contribute to the development of China's digital economy.
The authors of this study have contributed to the existing literature on the digital transformation of logistics in China by providing an overview of the current state of the industry and identifying the key challenges and opportunities that lie ahead. Specifically, the authors have highlighted the importance of intelligent supply chain management in the B2B sector and the role that artificial intelligence technology will play in driving efficiency and competitiveness. the authors' contribution to the field of logistics and supply chain management lies in their comprehensive analysis of the current state of the industry in China and their identification of practical solutions for the challenges that lie ahead.
► Theory. The term "logistics" originated in the late 19th and early 20th centuries and initially referred to services such as transportation, storage, processing, and distribution of goods. In the process of development, the term "logistics" began to distinguish between "logistics
transportation" and "logistics processing". After the subsequent stages of transportation, warehousing, and packaging, until the early 1990s, due to market demand and the development of information technology, the logistics industry gradually changed from the traditional industrial field to the modern service industry, forming an integrated industrial chain structure centered on logistics. With the continuous development and improvement of Internet information technology, the digital platform represented by e-commerce has been widely recognized
and applied globally. As a new economic The authors suggest the logical
model arising from the background of digital analysis of scientific research using three platform economies, the digital platform has main stages: description, analysis, and a richer and more diversified business model. interpretation (Table 1).
Table 1 - Analysis of scientific research.
Source Key Elements Related to Digital Logistics
Barykin et al. Smart supply chains, stakeholder interests, methodological approach
(2020) [1] to assessment
Barykin et al. Digital echelons, value chain interfaces, end-to-end marketing and lo-
(2021) [2] gistics integration
Barykin et al. Supply chain digital twin, digitalization, simulation, optimization (2020) [3]
Deng et al. (2022) Digital economy, green productivity gains, manufacturing, spatial ef-
[4] fect
Enrique et al. Digital transformation, supply chain flexibility, turbulent environ-
(2022) [5] ments, organizational capabilities
Fang Dianjun talks Logistics digitization and visualization, Industry 4.0, Artificial Intelli-
(n.d.) [6] gence
Financial JD Logistics revenue, external customer revenue, integration services Observation (n.d.)
[7]
Fundamentals of Logistics concepts and fundamentals
logistics
management [8]
Han (2021) [9] Self-logistics, third-party logistics, Jingdong Electronic Shopping Mall
Harrison et al. (n.d.) Logistics management, supply chain strategy, competing through the
[10] supply chain
Indian Institute of Logistics management, materials management Materials Management (2020) [11]
JD Logistics In- JD Logistics, Amazon Logistics, SF Express, service provider, supply
depth Research Re- chain infrastructure facilities port (n.d.) [12]
JD Logistics offi- JD Logistics IPO, Hong Kong Stock Exchange cially submits the IPO prospectus (n.d.) [13]
JD Logistics R&D Smart supply chain, 5G technology Head (n.d.) [14]
Karagiannis et al. Warehousing and distribution network design, third-party logistics
(2022) [15] (3PL)
Karayun and Logistics, regional development
Gülmez (2012) [16]
Liu & Ma (2022) Green logistics management, supply chain, Internet of Things (IoT)
[17]
Liu et al. (2022a) Smart technology, smart supply chain innovation, multi-case study,
[18] Physical Internet
Source
Liu et al. (2022b) [19]
New Directions in Supply Chain Management (n.d.)_[20] Qi et al. (2019) [21] Richard (n.d.) [22] Rogo.com (n.d.) [23]
Ryciuk (2019) [24] Scholz-Reiter et al. (2010) [25] Wan et al. (2018) [26]
Wan (2010) [27] What cross-border e-commerce platforms are in Russia? [28]
What Is logistics? (n.d.) [29] What Is the turnover of Tmall Double Eleven in 2021?
[30]
Wu et al. (2020)
[31]
Yavas and Ozkan-Ozen (2020) [32]
Yin et al. (2019) [33]
Yu et al. (2016). [34]
Zanjirani Farahani (n.d.) [35]
Zhang et al. (2022) [36]
JD Logistics In-depth Report [37]
Key Elements Related to Digital Logistics
Smart technology, smart supply chain innovation, multi-case study, Physical Internet
Trends and advancements in supply chain management
Taobao villages, e-commerce, logistics Logistics, economic growth, Tanzania JD Logistics revenue, external customer revenue
Smart supply chain, performance measurement, 3 V formula Manufacturing and logistic systems integration, global supply chains
Logistics innovation and development, Internet, supply chain management
Logistics, regional economic growth Cross-border e-commerce platforms, Russia
Logistics concepts and fundamentals Tmall Double Eleven, total transaction volume
IoT-enabled real-time logistics system for a third-party company, realtime tracking, real-time decision making, efficient resource allocation, and enhanced customer satisfaction.
Proposed framework for Logistics Center 4.0, integration of automation, AI, and IoT, digitalization of logistics operations, and enhanced efficiency and cost-effectiveness.
New retail business analysis and modeling, integration of online and offline logistics, use of big data and AI, real-time tracking and tracing, and enhanced customer experience.
E-commerce logistics in supply chain management, integration of technology, data management, digitalization of logistics operations, and enhanced visibility and efficiency.
Digitalization of logistics operations, use of technology to enhance efficiency, visibility, and sustainability, optimization of supply chain management, and cost reduction.
Measuring the degree of integration between digital economy and logistics industry in China, use of big data and AI, digitalization of logistics operations, optimization of supply chain management, and enhanced efficiency and competitiveness.
Leading service provider of supply chain infrastructure facilities, digitalization of logistics operations, use of technology to enhance efficiency and service quality, optimization of supply chain management, and expansion of global logistics network.
Description:
The literature review comprises 36 sources, covering various aspects of digital logistics, including supply chain management, smart supply chains, logistics operations, logistics centers, and ecommerce logistics. The sources include research papers, case studies, and reports from reputable academic journals and publications.
Analysis:
The sources suggest that digital logistics is a concept that encompasses the integration of various technologies and processes to improve logistics operations and supply chain management. One of the key themes that emerge from the literature is the use of smart technology to enhance supply chain performance. This includes the use of the Internet of Things (IoT), big data analytics, and Artificial Intelligence (AI) to optimize logistics processes and improve delivery times.
Another theme that emerges from the literature is the role of digital logistics in promoting sustainability and green logistics. The use of digital technologies, such as IoT and big data analytics, can help to reduce carbon emissions by optimizing routes and minimizing empty runs. Additionally, digital logistics can help to reduce waste and improve resource efficiency by enabling more accurate demand forecasting and inventory management.
Interpretation:
The literature suggests that digital logistics is an important concept that can improve supply chain performance, promote sustainability, and enhance customer satisfaction. The use of smart technology, such as IoT, big data analytics, and AI, can help to optimize logistics processes and improve delivery times. Additionally, digital logistics can help to reduce waste and improve resource efficiency by enabling more accurate demand forecasting and inventory management.
However, the literature also highlights several challenges associated with digital logistics, including data security, interoperability, and the need for skilled personnel. To realize the full potential of digital logistics, companies need to invest in the development of robust data security protocols, ensure interoperability between different systems, and provide training and education to their employees.
Overall, the literature suggests that digital logistics is a complex and multifaceted concept that requires a strategic approach to implementation. Companies that invest in digital logistics can achieve significant benefits, including improved supply chain performance, greater sustainability, and enhanced customer satisfaction. However, to achieve these benefits, companies need to address the challenges associated with digital logistics and develop a comprehensive strategy for implementation.
► Results. In the context of the digital platform economy, the logistics industry has undergone significant changes. With the advent of digital supply chain models, logistics has evolved from a simple transportation service to an integrated intelligent supply chain service provider. JD Logistics, the largest third-party logistics enterprise in China, has played a critical role in this evolution.
JD Logistics has created a platform called LoMir, which stands for logistics mirror, to build a smart logistics application system. The platform uses artificial intelligence, big data, and the Internet of Things to create an open and shared platform where stakeholders like JD.com, SF Express, Walmart China, Huawei, China Mobile, China Unicom, China Telecom, Tencent, and Baidu can share more industry resources. JD Logistics is working with other partners like the State Post Bureau, Deutsche Post, and the German National Institute of Supply Chain Management to jointly promote the
construction and development of the LoMir platform.
Through LoMir, JD Logistics has built a big data platform based on supply chain management, linking global resources, and enabling smart device connections and intelligent scheduling. With its unique advantages, JD Logistics has transformed into a new generation of "e-commerce logistics service providers" and is continuously innovating the traditional logistics model to provide customers with personalized and diversified commodity delivery services.
In the era of digital logistics, the development direction of intelligent logistics technology is mainly in the information dimension and will develop in the direction of visualization, transparency, predictability, intelligence, and autonomy. From the perspective of supply chains, e-commerce platforms will further integrate scattered resources and reduce logistics costs. JD Logistics has positioned itself as a supply chain-based technology and service company, and on the supply chain side, it has built an efficient, coordinated, and resilient supply chain system, ensuring its supply chain is stable and reliable. It has also opened its supply chain capabilities to the industry and society, helping the digital transformation of the entire link and reducing costs and increasing efficiency.
By comparing China (JD, Taobao) and Russia (Ozon, Aliexpress), the data index analysis between e-commerce logistics platforms, the authors consider the development of the intelligent logistics system.
JD itself belongs to the B2C ecommerce platform, and is the main self-operated logistics, to the self-built warehousing logistics center of the country in a radioactive layout.
Warehouse resources are the core of warehouse distribution service, and warehouse distribution supply chain service
is the foundation of JD Logistics. The warehouse distribution service of JD Logistics is divided into two categories according to the type of warehouse resources, one is the business warehouse service operated by JD Logistics global process itself; the other is the cloud warehouse service, also called economic warehouse service.
Meanwhile, JD provides customers with comprehensive, integrated, and customizable warehousing and distribution services, including headway transportation, multi-level warehousing and distribution, logistics technology services, and various value-added services. According to the official website of JD Logistics, the warehousing and distribution services include two levels of services, including business warehouse and economic warehouse. In addition to the basic warehousing and distribution services, JD Logistics has formed an integrated supply chain solution for the differentiated needs of multiple industries by integrating various logistics products inside and outside the system.
Taobao itself is a C2C e-commerce platform, and Taobao's logistics model can be seen as a cooperative model between sellers and third-party logistics companies. The logistics system relies on the third-party logistics company, shipping, receiving orders, and grabbing orders are all operated within the system, and then the goods are delivered to customers through the third-party logistics company's supply chain system.
The development in the e-commerce environment, based on the traditional distribution theory, and the fragmentation of merchants and demand users operated by Taobao.com hinder the development of logistics and make it difficult to form a social logistics and distribution system. Taobao logistics distribution, needs to be manually sorted and stored for ready access, but this
[ Store/Front Warehouse ]
Multi-channel inventory sharing (one plate goods/VMI/one aropshipping)
Figure 1 - JD logistics system - FBP (Fulfilled by Platform open Plan)
will cause labor costs and storage costs; resulting in the inability to reach a consensus with customers on a unified order within a certain period, resulting in some adjacent customers at the same time when the order is placed, but also to make multiple deliveries. The whole distribution process is as follows:merchantscollection points-regional distribution center sland transportations-destination regional
distribution center sbuyer/post/express point.
OZON is a B2C e-commerce platform in Russia and is currently the fourth-largest e-commerce market in Europe. The OZON platform has the most complete logistics facilities in the Russian e-commerce industry, OZON platform sellers can sell goods from OZON's warehouse (FBO) or
their warehouses established in the back office (FBS or RFBS) sconsumers place orders at Ozon.russellers choose shipping warehousesssellers to prepare goodsssellers to send goods through the selected channelsconsumers receive goods (Ozon offline outlets/home delivery).
AliExpress mainly uses supplier delivery and third-party delivery. On February 13, 2019, Cainiao reached a data docking with Russia Post, which shortened the express time limit from 50 days to 15 days, greatly reducing the delivery time of parcels in the Chinese and Russian markets and further optimizing the experience of Alibaba's current largest overseas market. The whole delivery process is factory/merchantsCainiao cloud
warehousesoutletspickup point/user.
* GMV growth is a key metric used to measure the performance and growth of e-commerce businesses, referring to the increase in Gross Merchandise Volume over time.
Table 2 - Differences between Russian and Chinese digital platforms (refer to 2021 exchange _rate: 1 RMB = 11.0085 RUSSIAN rubles, from Financial Reports)_
JD TaoBao OZON AliExpress
Delivery method Warehouse Third-party Third-party Third-party
logistics model logistics logistics logistics
Marketing Model B2C C2C B2C C2C
Revenue (2021) 9516 billion (RMB) 956.12 billion 448.3 billion 306 billion
(RMB) (Russian rubles) (Russian rubles)
GMV 80% 26% 139% 46%
Year-on-year growth rate 27.6% 12.22% 127% 124%
Global Active Consumer of the Year 560 million 1130 million 25 million 200 million
The authors could see several advantages of JD Logistics. Firstly, JD Logistics has maintained a high revenue growth rate in recent years, outperforming other e-commerce logistics companies such as Taobao, Ozon, and AliExpress. Secondly, JD Logistics has been at the forefront of its domestic counterparts in the field of "Internet+Logistics" and focuses on integrated supply chain logistics services, which has contributed to its revenue growth. Thirdly, JD Logistics has established modern warehouses and digital intelligent logistics information platforms, operated over 1,300 warehouses and 43 "Asia One" large-scale intelligent logistics parks, and is an industry leader in supply chain logistics technology. Fourthly, JD Logistics has been expanding its business through strategic partnerships, such as the one with Volvo Cars and Shopify, and it will play an increasingly important role in the future digital economy. Lastly, JD Logistics will continue to focus on digital transformation and technological innovation, increase cooperation with industry partners, the government, and other social forces, and provide more and better services for society.
SWOT analysis of JD self-built logistics (Table 3):
1) Strengths (S)
The advantage of JD Logistics is that it has its logistics and distribution physical center and physical logistics transportation and distribution team, and has formed a perfect integrated storage structure system, which is a key advantage in the digital field. Through fast order processing, delivery and after-sales service, buyers can feel the "fast" and "excellent" of JD logistics platform. At the same time, the fast delivery method helps maintain customer loyalty, improves the efficiency of receiving and user satisfaction, and constantly attracts new customers to join. Customers often express their appreciation for JD Mall's delivery service and logistics on social media platforms. They commonly promote the benefits of shopping at JD Mall by sharing positive experiences with other potential customers. This word-of-mouth marketing helps to maintain customer loyalty and attract new customers to the platform. Many users have reported that JD effectively solves logistical problems and consistently provides fast and efficient delivery services, which contributes to high levels of customer satisfaction.
2) Weaknesses (W)
Although JD has built a strong self-built network for the layout to provide logistics services, the self-built warehouse
and distribution model has incurred huge costs in terms of storage, transportation and other technical inputs while providing efficient logistics services, which has resulted in losses over the years. This was a significant weakness as it affected the company's profitability in the digital space. To turn these losses into profits, JD needs to better serve consumers, meet their needs, and control operating costs. In addition, JD's seven self-built logistics centers, which cover a wide geographic area, are accompanied by a growing distribution workforce, and effectively managing its large workforce is a pressing issue that needs to be addressed. Secondly, JD's reliance on the Chinese market limits its growth potential outside of China. The company's slow pace of international expansion has made it difficult for it to gain a foothold in other markets. JD's limited global reach compared to and Alibaba could make it challenging for the company to compete in international ecommerce markets, where a strong global presence is key. Finally, JD's lack of diversification beyond e-commerce leaves the company vulnerable to market changes and business changes that affect consumer preferences.
3) Opportunities (O)
JD has several opportunities for growth and development, including the growing demand for e-commerce and digital payment systems, as well as rising consumer demand for high-quality and authentic products. With its established reputation for selling high-quality products and strong logistics and distribution capabilities, JD is well positioned to expand its product and customer base, both domestically and internationally. In addition, the company's cross-border supply chain infrastructure allows it to offer a wide range of products to international customers and compete effectively in the global e-commerce marketplace. To capitalize on these
opportunities, JD will need to continue investing in technology development and improving the educational philosophy of training Chinese logistics personnel to ensure efficient operations achieved through the back-and-forth integration of e-commerce and logistics systems.
4) Threats (T)
As the world enters the digital era, the logistics industry, as an emerging complex industry, has become a new growth point for the national and global economy [34] and has a significant role in driving regional economic development [35; 36]. As an ecommerce company, JD relies heavily on its logistics and distribution infrastructure to deliver its products to customers and faces major threats including intense competition within the e-commerce industry, potential changes in government regulations, logistics and distribution challenges, and expansion into new international markets. The market share of leading logistics companies could also be a threat, and logistics challenges such as high transportation costs and labor management, natural disasters and unforeseen events could disrupt JD's logistics operations. In addition, Alibaba is one of JD's main competitors in the e-commerce space. If Alibaba is able to gain more market share and attract more customers, it may affect JD's market share and profitability.
With the growth of e-commerce, logistics has become an important part of the supply chain, and digital technology is playing a key role in improving logistics efficiency and reducing costs. Several trends are driving the development of digital logistics in China, including the adoption of new technologies, changes in consumer behavior, and the growth of online marketplaces, and retailers must adapt to these changes to remain competitive. This section will analyze the current trends in digital logistics in China and suggest improvements.
Table 3 - SWOT analysis of JD self-built logistics
Strengths (S) 1. Powerful e-commerce platform. 2. Advanced supply chain intelligent management. 3. Strong brand reputation.
Weaknesses (W) 1. High operating costs. 2. Difficult to manage the distribution staff as the base number increases. 3. Dependence on China market. 4. Limited global reach. 5. Limited product range compared to competitors.
Opportunities (O) 1. Growing demand for e-commerce. 2. Rising consumer demand for high-quality and authentic products. 3. Cultivate professional talents in the logistics industry.
Threats (T) 1. Intense competition in e-commerce industry. 2. Emergence of new market players.
One of the most important trends in digital logistics in China is the implementation of omnichannel strategies. This approach integrates online and offline sales channels to create a seamless shopping experience for consumers. From the consumer's point of view, efficient logistics and delivery have gradually become a powerful tool to guarantee user experience and enhance user stickiness. Consumers can get all the product parameters sold by the company from various channels such as mobile clients, platform APPs, offline physical stores, etc. Customers decide through what channels they want to buy products based on all the information they get, and consumer returns are more diversified; from the retailer's point of view, the implementation of omnichannel will attracts consumers to shop through different return strategies to meet consumers' needs. When consumers are attracted to offline brick-and-mortar stores, some customers will choose to make additional purchases, which will increase the retailer's profits at this time. In addition, the rise of e-commerce platforms such as Alibaba and JD has fueled the growth of mobile commerce in China. Retailers must embrace this trend by optimizing their mobile websites and apps to provide consumers with a seamless shopping experience.
Another important trend in digital logistics in China is the adoption of new technologies such as the Internet of Things, big data analytics and artificial intelligence (AI). IoT technologies are being used to track shipments and monitor inventory levels in real time, while big data analytics are helping logistics companies optimize routes and reduce delivery times. Artificial intelligence is also being used to automate many aspects of logistics, such as warehouse management, inventory control and order fulfillment. At the same time, with the addition of IoT+ and Industry 4.0. For example, intelligent logistics terminals, such as intelligent courier cabinets, such as intelligent management systems in logistics parks, such as cell phone freight apps, etc. Under the rapid development of the economy and technology, intelligent logistics will develop rapidly in logistics parks, cargo transportation, e-commerce, and other fields. New technology will certainly bring new logistics problems, and the new era of logistics problems must be solved to meet the new demand.
Currently, JD logistics equipment and technology industry should seize the opportunity of transformations and upgrading, actively face the challenges, and form new dynamic energy. To achieve this goal, JD has
implemented a solution architecture with three key components (Fig. 2.):
1. Full-link data visualization:
This component involves the visualization of data at every point in the logistics process, from order placement to delivery. By doing so, logistics companies can gain insight into their operations and identify areas for improvement. For example, they can see which products are selling well and adjust inventory levels accordingly, or they can identify bottlenecks in the delivery process and optimize routes to reduce delivery times.
2. Large data abnormalities extremely fast positioning:
This component involves using big data analytics to quickly identify and resolve any exceptions or problems in the logistics
process. For example, if a shipment is delayed or a product is damaged during delivery, logistics companies can quickly identify the problem and take corrective action. By doing so, they can improve the customer experience and reduce the costs associated with lost or damaged products.
3. Multidimensional whole-chain diagnosis and analysis:
This component involves multidimensional analysis of logistics data to provide a deeper understanding of the logistics process. For example, logistics companies can analyze data from different regions, different products, and different delivery channels to identify patterns and trends. By doing so, they can optimize logistics operations and improve the customer experience.
Figure 2 - JD Solution architecture
► Conclusions and Discussion. The
authors suggest discussing the acceleration of digital transformation in China's economy and the importance of data interconnection and industrial integration in the digital era. They also highlight the economic benefits of the strategic deployment of multi-channel logistics toward partners and stakeholders. The authors point out the differences between JD's "warehouse distribution model" and other e-commerce logistics
platforms' "network express model" and suggest lessons JD can take from Taobao live to improve and optimize its management system and processes. The authors also emphasize the importance of timely response, visualization, and intelligent management in supply chain platforms, as well as the significance of digital technology in improving the efficiency of production factor matching across channels and
optimizing the cost and efficiency of the whole chain.
The digital transformation of logistics and supply chain management is an important trend that is reshaping the industry and driving economic growth. JD Logistics has been at the forefront of this transformation, leveraging advanced technologies and innovative business models to enhance efficiency, reduce costs, and improve customer experiences. With its strong position in the Chinese market, expanding global footprint, and commitment to sustainability and social responsibility, JD Logistics is well-positioned to continue its leadership in the digital logistics era.
The study has analyzed the revenue indicators of the JD logistics platform and its strengths, weaknesses, opportunities, and threats using the JD intelligent logistics system as the research object. It has highlighted the unique logistics advantages of JD and how it has become a leader in China's B2C e-commerce industry through self-built logistics. However, the study has also identified some weaknesses of JD's integrated warehouse structure, including
► References
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high self-construction costs, unbalanced infrastructure distribution, and lack of synergy, which should be addressed to improve its logistics services further.
The authors' contribution lies in their critical analysis of JD's logistics platform, which can help logistics companies and ecommerce platforms to understand the advantages and challenges of self-built logistics. Additionally, this study highlights the importance of talent training in the logistics industry and the need to focus on upgrading physical control systems to help enterprises transform digitally and grasp market opportunities.
Future research could explore ways to optimize JD's integrated warehouse structure and improve the synergy of its logistics processes. Additionally, the research could focus on the impact of JD's self-built logistics on the environment and sustainability issues. Overall, this study emphasizes the need for logistics companies and e-commerce platforms to adopt innovative technologies and integrate digital intelligence into their supply chains to remain competitive in the rapidly evolving digital economy.
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Статья поступила в редакцию 16.06.23
