JD.com seeks efficiency with logistics center
Print Edition
JD.COM’S new logistics center in Shanghai has started operating ahead of a peak season for online shopping as the US-listed company deepens its battle with Alibaba Group for consumers.
The first phase of the 100,000-square-meter project, which began trial operations in June, focuses on sorting and transporting medium-sized merchandise.
“JD.com’s operational efficiency will be lifted after the new warehouse is put into use and delivery speed will also be further increased,” founder and Chief Executive Officer Liu Qiangdong said in a statement yesterday.
Logistics is the backbone for China’s booming e-commerce market, and JD.com’s warehouse, named “Asia No. 1,” is one of the largest and most advanced logistics facilities. Alibaba, Dangdang.com and Amazon’s China unit have also been boosting delivery service in recent years.
JD.com is also starting to build warehouses in Beijing, Chengdu and Xi’an.
Alibaba earlier this month unveiled a 10 billion yuan (US$1.6 billion) investment in the next three to five years in rural areas to set up operation centers and logistics facilities.
The so-called Singles Day on November 11 has become a shopping bonanza for e-commerce sites and online shoppers. Sales at JD.com on November 11, last year, totaled US$1.6 billion.
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