JD Logistics opens smart logistics centre in Asia

JD Logistics has announced it is seeking to raise as much as $3.4bn in its Hong Kong initial public offering (IPO).

The delivery arm of the Chinese e-commerce giant JD.com has announced the opening of its smart logistics park in South China. The tech-powered centre located in Dongguan, Guangdong Province, is an hour away from Shenzhen. Dongguan “Asia No. 1” is JD’s largest logistics park amid the 24 centres it operates across China.

The 500,000 sq m warehouse stores 20m medium-sized packages and processes up to 1.6m orders daily. JD has claimed that delivery time in the area will be shortened to less than one day.

JD launched the first Asia No. 1 in Shanghai in 2014. Over the next two years, JD plans to build 20 additional smart logistics centres.

JD said the smart supply chain line “improved its efficiency” in the lower-tier cities in China by expanding its 24-hour delivery services. Now, JD Logistics, which generated nearly 40% of JD’s revenue in the third quarter, can deliver 90% of its direct sales within 24 hours in China, according to the company’s statement in November 2019.

Source: Capital Watch