JD.id Focuses More On Supply Chain, Addition of Warehouses, and Logistics

Logistics services are now one of the crucial sectors. One of the factors driving the sector during the pandemic is the increase in online shopping activities. Integrated and comprehensive services are increasingly being prioritized by e-commerce platforms in Indonesia, starting from collaborating with experienced logistics partners to running their own logistics activities.

DailySocial trying to dig deeper into JD.id's business focus until next year and their efforts to emerge as a leading platform in the fast delivery sector throughout Indonesia.

Commitment to "fast delivery"

JD.id President and CEO Zhang Li said, "In accordance with the company's vision and mission, JD.id will continue to build the company's capabilities to serve consumers with the best shopping experience, by continuing to strengthen three main elements, namely strategic development of the supply chain, increasing the number of warehouses and expanding logistics coverage, as well as developing online-to-offline (O2O) retail technology."

JD.id Marketing Chief Mia Fawzia explained, over the past 6 months, the company has experienced positive business growth. Not only in quantity visitor, but the growth in the number of sales which reaches up to 40%. Popular types of products are products in the Electronics, Groceries, Mom & Baby, and Home Living & Virtual categories.

Regarding logistics services, the company noted that in September 2020 85% of delivery orders to all parts of Indonesia were successfully carried out within 24 hours. The data also shows that 95% of shipments of ordered packages to the Jabodetabek area are successfully carried out within 24 hours. For logistics fleets, sellers are free to choose J-Express (JD.id's internal logistics service) or use other services.

"Until now, JD.id has been able to reach almost all parts of Indonesia. However, especially for the Papua region, we are still working with third party logistics to help us in the process of shipping goods," said Mia.

Overall, JD.id has around 12 warehouses spread across several regions in Indonesia. The warehouse locations are spread over several areas. Starting from Jakarta (Marunda) 6 warehouses, Cikarang (for rent by IKEA) 1 warehouse, Medan 1 warehouse, Semarang 1 warehouse, Makassar 1 warehouse, Pontianak 1 warehouse, and Sidoarjo 1 warehouse.

Warehouse ownership is one of the keys to speeding up the logistics process. By being managed independently, the e-commerce platform can perform sorting and shipping processes quickly, without any data access barriers inventory and retrieval processes from third party logistics partners.

Expand service

As an e-commerce platform, JD.id has expanded its services to various products. The company also has several insurance or protection products.

"We intend to provide a complete and comprehensive shopping experience and service to JD.id customers, [..] to help reduce the risk of consumers in shopping if something unexpected happens." Mia said.

In the future, JD.id is interested in exploring this service further, one of which is by collaborating with various national and multinational protection companies.

To increase product choices, JD.id presents services on demandJ.D. Life. There are a total of 12 service categories to help with daily life, from installation, maintenance, to cleaning services. Most of the services offered by JD Life focus on household needs, including installation and cleaning of electronic devices, washing machines, to air conditioners for housing and apartments.

"The range of JD Life services depends on each category, but currently almost all major cities in Indonesia are able to order and enjoy JD Life services," said Head of Operations JD Life Ryan Sebastian.

About development JD.id X-Mart, Mia revealed, similar to other retail businesses, JD felt the impact of the Covid -19 pandemic. However, this offline retail facility is managed in an omni-channel manner, so the impact is not so pronounced.

Launched in 2018, JD.ID X-Mart is the first cashierless store in Indonesia (outside its home country, China) located at PIK Avenue. Because it carries the concept of a store without a cashier, JD.ID X-Mart uses QR queues what's in the app mobile devices di smartphone to the verification tool at the store entrance gate.

"JD X-Mart's module business itself is indeed an omni channel, so it is very easy for us to switch and focus on online sales," said Mia.