August 16, 2017

APICS, JD.com to build benchmarking model supporting omnichannel distribution

Expanded relationship to provide JD suppliers with tools to measure performance.

By DC Velocity Staff

Supply chain group APICS and Chinese retailing giant JD.com said today they have expanded their relationship in order to develop a benchmarking system for omnichannel distribution supporting the burgeoning flows of global and regional e-commerce.

By combining APICS' SCOR operations reference model and JD's IT platform, the benchmarking system will provide JD's major suppliers with real-time comparisons to their competitors and their respective industries at both the regional and global levels, APICS and JD said in a joint statement. In addition, APICS and JD will establish an omnichannel benchmarking group to develop best practices from their cooperation on global e-commerce supply chains, they said.

"Supply chain management has become increasingly complex as consumer demand has shaped omnichannel retail experience expectations," said Abe Eshkenazi, APICS' CEO, in a statement. "We have a unique opportunity to work with the largest retailer in China, JD.com, to set standards, identify best practices, elevate supplier performance and then share the resulting knowledge with supply chain organizations around the world."

"Smart supply chain is a strategic imperative for JD's growth, and our work with APICS is an important step in that," said Yongli Yu, JD's president of supply chain R&D, in the same statement. "We are focusing on opening our capabilities to suppliers and partners to further the development of AI-powered, technology-driven smart supply chains. This strategic partnership will provide insights derived from real-world surveys, allowing us to deliver a performance-driven measurement and improvement platform for real-world solutions."

APICS and JD said the agreement, which builds on a partnership entered into last March, can further both organizations' roles as leaders in omnichannel supply chain management and cultivate an international supply chain community focused on performance improvements.

APICS' mission is to advance supply chains through benchmarking, performance improvement, process management, and talent development. JD.com operates the largest retail supply chain in China, serving more than 236 million customers. JD operates an in-house logistics network spanning all of China.

Earlier this month, JD said it had formed an alliance with more than 20 logistics providers and retail brands, including retail giant Wal-Mart Stores Inc. and online auctioneer eBay Inc., in an effort to improve its practices for importing e-commerce goods to China.

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