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

Chris Caplice - academic who helped make freight a science

Dr Chris Caplice of MIT is one of the most decorated and influential thinkers around freight and logistics, being behind MIT FreighLab and other ventures

News round-up: Supply chain, logistics and procurement

SMBs face greenwashing brand damage - Software Advice; Top 10 procurement platform providers - iSAP, Oracle & Coupa; Accenture supply & Ukraine war

Sustainability in supply chain is crucial - BBG's Coindreau

Mauricio Coindreau is Head of Procurement and Sustainability for Budweiser Brewing Group (BBG), part of AB InBev – the world’s biggest brewer

SMBs face greenwashing brand damage, says Software Advice

Sustainability

'Electricity 4.0’ the future of sustainability - Schneider

Sustainability

Retail seeking supply chain agility in omnichannel world

Digital Supply Chain