JD.com, a leading Chinese e-commerce giant, is set to expand its logistics operations in the United States with the opening of a new self-operating warehouse in California. This state-of-the-art facility will be the company’s third warehouse in the state, joining two existing facilities in New Jersey and one in Georgia. The addition of this new warehouse will increase JD.com’s total warehouse footprint to 1.3 million square feet across the United States.
The new self-operating warehouse will create more than 300 local jobs and aims to address supply chain challenges in North America by replicating elements of JD.com’s world-class logistics operation in China. The company’s CFO, Sandy Ran Xu, emphasized the importance of investing in global logistics infrastructure to leverage core capabilities and explore online retail business opportunities in other markets.
One of the key features of JD.com‘s self-operating warehouse in California is the use of advanced technology, such as automated conveyors and self-operating robots. Goods are delivered to the warehouse by trucks and are swiftly offloaded onto a network of automated conveyors.
These goods are then scanned, sorted, and stored by fast-moving, self-operating robots, which significantly improves operating efficiency by 300% and increases the number of storage units from 10,000 to 35,000. This innovative system allows warehouse employees to work in designated stations while the container transport units (CTUs) pick up and drop off goods.
JD.com’s self-operating warehouses offer numerous benefits to merchants, including extended order cut-off times by an additional hour, thanks to their automation capabilities. The company hopes to eventually provide two-day delivery coverage across the entire United States. General Manager of JD Logistics United States, Gordon Lu, highlighted the unique ability of JD Logistics to solve the challenges posed by fragmented supply chains resulting from the shift in demand from major e-commerce platforms to smaller independent operators.
With the opening of this new self-operating warehouse in California, JD.com continues to demonstrate its commitment to enhancing its logistics capabilities and addressing supply chain challenges in the global market.