JD Logistics experiences 91% increase in revenue during Q1

By Sean Galea-Pace
The JD.com logistics arm, JD Logistics, has experienced an increase in revenue to 91% year-over-year during its first quarter, according to Supply Chain...

The JD.com logistics arm, JD Logistics, has experienced an increase in revenue to 91% year-over-year during its first quarter, according to Supply Chain Dive.

According to executives in a first-quarter earnings call, the figure for revenue growth also included unspecified “other services.” It is thought that the carrier has been able to look after a greater number of orders due to technological improvements.

It is believed that the original aim was to build more logistics capacity that exceeds the demand and wait for the demand to follow suit. CFO Sidney Huang commented: “We essentially built out very large capacity ahead of time to ensure that new customers can enjoy the best experience.”

SEE ALSO:

With JD’s gross profit margin up from 6.4% on the whole, JD.com experienced a rise in its profit to $1.1bn during its first quarter as it made up for its $363mn in losses last year.

In a call, Huang said: “The new changes are designed to better incentivize our delivery staff in light of our expanding business lines and industry best practices. In fact, the majority of our delivery staff affected by the new incentive scheme, so their monthly income increased in April while their productivity also improved.”

Share

Featured Articles

Foldable shipping containers an answer to port congestion?

Staxxon designs foldable intermodal shipping containers, a solution designed to tackle 'empty running', whereby empty containers clog ports and hurt supply

Timeline: how ESG became a supply chain strategic priority

A timeline of how Environmental, Social & Governance went from being 'nice to have' to mission critical, with ESG now a strategic priority for many

Supply chains 'playing catch up on visibility technology'

A Deloitte report shows there's a long way to go on supply chain visibility, but digital transformation is crucial if firms are to thrive, says FourKites

Reshoring on rise as supply chain pressures ramp up

Supply Chain Risk Management

Climate change an ill wind for supply chain risk management

Sustainability

Supply chain, procurement logistics & tech news roundup

Digital Supply Chain