Peace of Mind at the Touch of a Button
Financial information is not the only thing JD’s information system connects, but also every user, employee and item. Our goods and assets are interconnected into a complex web that makes management as simple as the touch of a button.
Case in point, every bag packed must be scanned to tell the system that it was completed so that every piece of data will be collected by the system. And with this precious data every meter of tape and every carton packed in a month can be meticulously tracked. Something as basic as a carton for example— JD’s cases are divided into six different specifications ordered from one to six, and our system calculates the packaging specifications of the customer’s order in cartons in less than a nanosecond. Company resources would be wasted if the packers use cartons larger than necessary.
Using larger cartons, the packers can pack faster and thus be paid better. Yet it puts unnecessary burden on the company’s ROI, and needs more padding, which just fritters money away. If the carton is small, it needs to be arranged carefully and adjusted so that all the goods can be put in properly.
Every employee’s action is recorded faithfully into the system. The truckdriver for example, we can log which vehicle he gassed up and the amount.
Every second of the employees’ time at work at JD is planned out and managed to the nth degree by the system. Each employee is equipped with a handheld wireless device to receive instructions, and when the task is completed, the system automatically sends the next instruction so that they’ll be either searching the warehouse for the next order, pulling product, or on the distribution lines—but the point is that they will be, working constantly.
The system also plays an important role i n delivery efficiency. In Beijing we have hundreds of distribution stations with more than ten staff members on duty at any given moment. Ostensibly the question of which delivery person should take the goods to which location seems like a snap, but working tirelessly behind the scenes is a complex network of information systems on the job 24/ 7, working and collating, planning, arranging, directing and distributing. Where is your pick up location? How much does it cost? Is it right? It’s all handled by a set of instructions relayed by the information system. This is how we can ensure that each and every customer receives his/ her package in the shortest time possible.
( From LiuQiangdong’s Autobiography : My Business Model , Citic Press. Translation: Qing Run)