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 third largest internet company by revenue, 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, JD will be pitching the idea to North American retailers 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," Chen Zhang, JD.com's chief technology officer, said in a blog post. "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."
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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 Fulfillment by Amazon (FBA) program offers third party logistics (3PL)-type services and helps the company achieve greater economies of scale and leverage lower prices from business partners.
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 installed by Amazon at many Whole Foods Markets stores and urban apartment building lobbies. 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. Running at full capacity, these delivery stations can deliver up to 2,000 packages a day.
Also on display in JD's booth at the CES show will be showcases of other fulfillment technology such as:
virtual realitydemos of the use of drones to deliver consumer goods and medical supplies to remote areas in China,
a glimpse of what JD calls "the world's first fully-automated fulfillment center,"
plans to use underground urban logistics networks to make shopping more convenient, and reduce urban traffic
augmented reality-based fitting and styling software
Internet of Things (IoT) technology that enables consumers to remotely control the smart devices in their homes, even from their cars, and
an exoskeleton worn by staff in JD warehouses that makes lifting heavy objects easier.
As JD offers its "advanced e-commerce infrastructure" to new clients in its retail-as-a-service approach, the company says it intends to support "boundaryless" shopping that allows consumers everywhere—not just JD.com's customers—to be able to buy whatever they want, whenever and wherever they want it.
"We've spent the last decade building up advanced technology, logistics, supply chain and other capabilities," Kenny Li, a JD vice president, said in a video. "We are now sharing this technology and infrastructure with a broad range of partners... We have worked with thousands of offline store partners to enable them with our technology, logistics, marketing, and other capabilities."
Retailers who subscribe to JD's RaaS offering will be able to tap into supply chain capabilities that "help us achieve unparalleled operational efficiency for our online and brick and mortar operations and deliver a level of customer service that is unmatched globally," Li said.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.