China’s largest online retailer, announced the establishment of JD Logistics recently, a new business group under JD.com. This will leverage the company’s advanced technology and logistics expertise to provide delivery services to businesses across a wide range of industries.
Logistics groups have increasingly sought investments to fund work. Focus on solutions to supply-chain issues, including autonomous driving, automated warehousing, cross-border and smart logistics services has been increased. JD.com, being aggressive in that push, was the first one in China to invest in drones.
Last year, JD.com invested in logistics infrastructure in Southeast Asia, expanding from existing commitments in Indonesia. It also announced a partnership with Japanese delivery firm Yamato Holdings (9064.T) last month to ship products from Japanese retailers to China.
But JD isn’t the only player investing billions in their delivery logistics. Jack Ma’s Alibaba is also investing the resources required to build up and strengthen its own delivery network. In September, the company took control of Cainiao, its logistics unit, and pledged to spend 100 billion yuan over five years on things such as R&D and computerized “smart” warehouses. This pits Alibaba directly against JD in fast-growing markets such as online groceries where same-day delivery is critical.
Way forward in Logistics
It is time for other retailers to seize the opportunity to develop a better delivery infrastructure that will cater to the growing demand from customers to shop online.
New technologies are revolutionizing multiple sectors, industries and processes. Delivery management is just one of the many that is seeing a constructive change. Trying and testing new technologies could redefine the future of e-commerce. These technologies are set to have an immense impact on delivery management. With big companies already implementing some of the technology like drones, and reaping the benefits, it is clear that these advanced technologies are not only here to stay, but are set to transform the delivery management processes entirely.