JD Logistics: Advancing Global Supply Chains through Robotics and Automation Technology
JD Logistics (JDL) listed on the Hong Kong Stock Exchange (HKEx) on May 28 at 9:30 am Beijing time with the ticker 2618.HK. As JD.com increasingly relies on automation to fulfill its promise of same- and next-day delivery to more than 300 million customers, the company is redefining industry standards for delivery times. According to JDL’s prospectus, the company has invested nearly RMB 5.3 billion yuan in technology in the past three years. By the end of 2020, JDL was entitled to over 4,400 patents and computer software copyrights, of which over 2,500 are related to its automation and unmanned technologies.
The Role of Advanced Robotics in Modern Logistics
Robots play a significant role in securing the fast and agile fulfillment of hundreds of millions of orders across more than 1,000 warehouses nationwide. For JD, which is China’s largest retailer, online or offline, robots’ contributions in automated warehouses are invaluable. The smart machines quickly, tirelessly and efficiently complete mundane and repetitive tasks, such as picking a product from shelf and placing it in a basket. The core of achieving such high efficiency is the execution of the concept of “human-machine synergy,” enabling employees to handle tasks smartly and swiftly.
Innovative Goods-to-Person (GTP) Solutions
JD Logistics announced its latest Goods-to-Person (GTP) automated warehousing innovation, the “Zhilang” solution. Zhilang is a proprietary system that improves picking efficiency by over three times compared to traditional methods. This advanced system combines several technologies, including handling AGVs, lifting robots, and shelving systems, along with automated inbound and picking workstations and an empty tote reflow line. Powered by JD Logistics’ self-developed “upper tote storage and lower picking scenarios” algorithm and “buffer storage” technology, the network is fully flexible for optimized routing.
- AGVs (Automated Ground Vehicles): In JD’s Beijing Asia No.1 logistics park, 330 AGVs work collaboratively to pick up consumers’ orders.
- Six-axis Robotic Arms: These utilize AI technologies including deep learning and image recognition for automated picking up, sorting and stacking.
- Autonomous Delivery Vehicles: In Changshu, Jiangsu province, nearly a hundred autonomous delivery vehicles are delivering JD.com’s parcels to consumers’ homes.
Case Study: California Distribution Center Automation
In Fontana, California, JD Logistics upgraded its manual processes by implementing Hai Robotics’ Autonomous Case-handling Robotic (ACR) Automated Storage and Retrieval System (ASRS). After implementation, JD Logistics’ picking efficiency was improved to 100% accuracy, significantly increasing their shipping precision. The system is designed to support up to 600 picks / hour / operator, equating to about 350 orders / hour / workstation.
The following table summarizes the operational improvements at the California facility:
| Metric | Before Automation | After Automation |
|---|---|---|
| Vertical Storage Height | ~5 feet | 17 feet (240% increase) |
| Unique SKUs Managed | 70,000+ | 100,000+ |
| Black Friday Weekly Orders | 35,745 | 98,156 (174.6% increase) |
| Average Hourly Throughput | 451.6 orders/hour | 641.7 orders/hour |
Impact on the Workforce and Global Expansion
Logistics technology including robots and automation have offered huge potential to help employees develop and leave the hardest and most boring jobs to technology to handle. Training has been significantly reduced from 8 hours of structured training and 2 weeks of supervised work to a 2-hour training video and about 2 days supervised work. Employees who were previously walking 10+ miles a day to fulfill orders now pick in ergonomic, operator-friendly workstations.
As JD Logistics expands globally, its solutions now serve thousands of corporate clients across dozens of countries and regions, including Poland, the Netherlands, Germany, South Korea, the United States, and throughout Southeast Asia and the Middle East. Central to JD.com’s recognition is Ocean Box Partners, a flagship project under the Green Stream Initiative initiated by JINGDONG Logistics, which focuses on sustainability seamlessly integrated into brand value and core strategy.
