Jd.com released its second quarter and interim results for 2023. In the second quarter of 2023, JD Group’s revenue reached 287.9 billion yuan (about 39.7 billion US dollars), exceeding market expectations. Behind the comprehensive exceeded expectations of the core indicators, Jingdong continues to promote the efficiency of the supply chain with technology, and brings more benefits to customers by relying on the optimization of cost and efficiency. In the second quarter, Jingdong inventory turnover days continued to maintain the world’s leading level of 31.7

5370-CVIM

r of last year to 5.8% in the second quarter of this year.

As a sub-group of Jingdong Group engaged in industrial supply chain technology and service business, Jingdong Industry has also continued to deepen supply chain technology service innovation and fine operation, bringing more help to industrial enterprises to reduce costs and increase efficiency. In the first half of this year, Jingdong Industry took the lead in the industry to put forward a full-link digital service model of the supply chain, opening up all links of the industrial chain through the digitization of commodities, procurement, performance and operation, on the one hand, effectively reducing the additional costs caused by information mismatch in the past, on the other hand, transforming the previously dispersed industrial chain into a supply network of “10,000 warehouses in one, 10,000 orders in one”. It significantly improves the utilization and allocation efficiency of social resources.
Supply chain comprehensive cost reduction of more than 30%

In the second quarter, this supply chain full link digital service model has been applied in a number of large industrial enterprises, significantly improving the comprehensive cost of the supply chain of industrial enterprises. According to the research data of Jingdong Industry, by realizing the spare parts inventory “buy less and prepare less”, improving the performance delivery efficiency, and intelligent scheduling of warehouse allocation resources, enterprises can reduce the comprehensive cost of the supply chain by more than 30%.

For example, when serving Desheng Iron and Steel, the largest private steel enterprise in Sichuan Province, Jingdong Industry created spare parts supply chain solutions for it, which significantly reduced inventory costs. As a typical heavy industry, the spare parts inventory of steel mills is usually hundreds of millions, which will not only consume a lot of inventory resources, but also occupy a lot of working capital. The Jingdong Industrial spare parts supply chain solution will accurately analyze the number and times of various spare parts in the past two years, and give the average consumption of a replenishment cycle and suggested replenishment water level and replenishment cycle through artificial intelligence algorithms to help steel mills achieve inventory water level control based on spare parts demand prediction, so as to achieve “less spare, less buy, fast use and fast supply”. At present, Dessun Steel’s auxiliary spare parts and secondary spare parts, the two largest and highest proportion of spare parts management efficiency has been significantly improved, and spare parts inventory cost is expected to be reduced by 20%.