JD Logistics opens a self-operating warehouse to cater to the growing customer demands in California

Chinese e-commerce giant JD.com is expanding its logistics arm by opening a self-operating warehouse and distribution centre in California, its third in the state. The move will add over 300 jobs and expand JD.com’s warehouse footprint to 1.3 million square feet throughout California, with warehouses in New Jersey and Georgia as well.

By replicating elements of its logistics operations in China, JD.com aims to address supply chain challenges in North America, with a goal to grow two-day delivery to cover the entire United States.

The company’s automation capabilities allow it to extend order cut-off times by an additional hour, and at one California warehouse that utilises a container transport unit system, the system has improved operating efficiency by 300 per cent.

“Demand has shifted from the major e-commerce platforms to smaller independent operators, which has led to fragmented supply chains, adding further complexity and challenges to supply chain management,” stated Gordon Lu, General Manager of JD Logistics, United States.

“As more and more retailers are shifting from bricks-and-mortar stores to e-commerce platforms, retailers continue to sell their products on multiple e-commerce platforms, which requires utilising multiple warehouses to handle B2B and B2C orders, dramatically increasing their holding costs,” he said, adding, “This is a challenge JD Logistics is uniquely equipped to solve.”