Long House Studio

The Perspective of JD.com Regarding the Role of Supply Chain in Business

Supply chain management is an essential tool for the success of any business. An adequate supply chain ensures that products from the producers reach the consumers efficiently and with minimal hassles. Most companies give a lot of emphasis and attention to the efficiency and agility of their operations. However, they often overlook the importance of having a functional supply chain. How products and services reach the consumers from the manufacturers or service providers matters a lot to the consumers. No customer is ready or willing to struggle to access products of their choice. Instead, they would opt to find an alternative from other companies that can provide similar products but more efficiently.

Jing Xu has been very instrumental in sealing this gap between the producers and consumers. With his eCommerce store, JD.com, consumers have managed to access products directly from the manufacturers, without the bother that comes with intermediaries. Producers have also benefited from this platform since they are also no longer required to pay commission to the middlemen, who initially purported to be the bridge between the consumers and the manufacturers.

One of the key benefits that companies reap from effective supply chains is increased revenue growth. Recent research studies conducted by Deloitte revealed that generally, organizations with functional supply chains experienced higher growth in revenue as compared to those with none. The same report indicated that among all the organizations globally, only 8% of those without supply chains in place managed to achieve above-average growth. This was clear proof that the supply chain enabled businesses to have a competitive edge in the market over their competitors.

The other aspect that Jingdong emphasizes in its operations is the need for adopting new technology. The company believes that technology acts as the infrastructure for business development by providing a platform that allows consumers and service providers to interact. For instance, the eCommerce platform that JD provides for its clients assists them in handling their business transactions without moving an inch. Through the platform, producers can provide information about their products and also offer their products for purchasing. On the other hand, consumers can access both the products and their details, which enables them to make informed purchasing decisions.

For More info: baike.baidu.com/item/%E4%BA%AC%E4%B8%9C/210931