How JD.com is Harnessing AI to Strengthen Supply Chains
As a leading supply chain-based technology and service provider, JD.com's business encompasses multiple sectors, including retail, technology, logistics, healthcare, industrial solutions, private label products, insurance, international ventures and more.
At the centre of JD.com's approach is a ‘responsible supply chain’, which it uses to redefine the integration of merchandise, warehousing and cloud-based digital technologies. This not only ensures JD’s supply chain stability and reliability but acts as a driving force in transforming and reducing costs for its partners across the industry chain—creating a better experience for the high-quality development of the real economy.
Through its core values, such as putting the customer first, upholding integrity, fostering collaboration and embracing ownership, JD.com is guided by the mission 'powered by technology for a more productive and sustainable world.'
The company steadfastly adheres to the principles of prioritising experience and customer satisfaction. Its fundamental business philosophy is to optimise cost and efficiency while offering high-quality products, competitive pricing and exceptional service. JD.com aspires to earn the distinction of being the world's most trusted company.
Leveraging AI
The use of AI has seen JD post a 92% increase in net income attributed to shareholders, with its stock increasing by 4%.
Sandy Xu, Chief Executive Officer of JD.com, says: “We remained committed to the sustainable and high-quality growth of our business in the second quarter.
“Our steadfast efforts to strengthen supply chain capabilities and user experience continue to distinguish JD in China's e-commerce industry, as we leverage our growing economies of scale and procurement efficiencies to bring users everyday low prices without sacrificing quality.
“Combined with our progress in building a thriving platform ecosystem, these efforts have led to a favourable response from users, with robust user base expansion and user engagement improvement in the quarter.
“Going forward, we will continue to focus on our own strengths to enhance user experience, price competitiveness and platform ecosystem, which we believe are fundamental to ensuring sustainable growth in the years to come.”
'Powered by technology for a more productive and sustainable world'
Amidst these profits, JD.com has entered into strategic partnership agreements with multiple brands, including Xiaomi, Lenovo and OPPO, to further deepen cooperation with a focus on smart devices, intelligent supply chain and AI technology integration. JD.com and these brands have established three-year sales targets and will work closely to maximise their respective strengths and identify new growth markets.
Additionally, JD Logistics uses its Supply Chain Emission Management Platform (SCEMP) to provide customers with data monitoring, reporting and verification of carbon emissions in the logistics transportation, enabling more valid and accurate carbon reduction efforts through big data computing. 25 of its customers worldwide have used the platform to steer towards their carbon reduction targets.
“In the second quarter, our total revenues increased by 1.2% year-on-year, as we navigated a high base in our electronics and home appliances category from last year, while growth in our general merchandise category, particularly supermarket, remained robust,” adds Ian Su Shan, Chief Financial Officer of JD.com.
“We continued to enhance price competitiveness during the promotional season through our supply chain and disciplined approach, as opposed to reliance on subsidies. As such, our gross margin substantially increased by 137bps year-on-year to 15.8%, contributing to our record-high operating and net profit on a non-GAAP basis in the quarter.
"These high-quality results, coupled with our accelerated share repurchase, highlight JD's commitment to creating long-term value for our shareholders.”
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