TIANJIN, China, July 10, 2014 /PRNewswire/ — The Tianjin warehouse center of Dangdang was formally put into use on 3rd July. In the meantime, Dangdang announced its service commitment of “111 super speed delivery” has covered 400 cities in China. On the same day, Dangdang also signed strategic agreements with some of the largest logistics corporations in China to improve nationwide delivery speed and service.
“111 super speed delivery” means “orders placed before 11 a.m. will be delivered within 12 hours, orders placed before 1 a.m. will be delivered within 24 hours.”
Dangdang adopts the mode of “self-built warehousing plus external logistics cooperation.” This mode can eliminate the disadvantage of separate management and form a coordinated process of logistics, data and management in order to achieve faster speed and lower cost than self-built logistics.
Dangdang speeds up: 16 new warehouses will be built in 2014
According to Dangdang’s warehousing manager Ren Qiang, Dangdang has completed 29 warehouse centers. By the end of 2014, the number will reach 45 in seven areas of China.
In addition to speeding up warehouse building, Dangdang improves the efficiency of the supply chain by opening its independently developed FDC pre distribution center to upstream suppliers, providing nearby delivery, centralized storage and value-added services of nationwide unified delivery.
According to data display, the FDC pre distribution center can improve 60 percent of timeliness of arrival and reduce 66 percent of the out of stock rate. At present, suppliers joined the FDC system accounted for 50 percent of total suppliers of Dangdang.
At present, the Tianjin new warehouse center is the biggest self-built warehouse center covering an area of more than 31 hectares. The total planned warehouse area is 200,000 square meters. 100,000 square meters has been put into use, and another 100,000 square meters will be constructed in the future.
Dangdang speeds up: the intercity transportation in 1-2 days
Dangdang promotes the efficiency of intercity transportation and express delivery by cooperating with large transportation and logistics enterprises in order to achieve faster speed and a wider range than self-built logistics.
Speaking of the acceleration of intercity logistics, Dangdang speeds-up the intermediate and long-range transportation by adhering to the strategy of openness and alliance and fully integrating social logistics resources such as express bus, aviation and high-speed rail.
According to the director of Dangdang’s logistics service department, Duan Yu, at present, the average delivery time can be shorted by 1.1 days by cooperating with large courier companies, which have mature and convenient trans-provincial bus system.
In the area of aviation, Dangdang already has close cooperation with major airlines in order to meet remote and fast requirements by providing special hours’ air freight.
In the meantime, Dangdang will realize its “111 super speed delivery” commitment for trans-provincial delivery with lower costs by carrying out an e-commerce special cooperation with China Railway Corporation and making use of the more than 1,000 lines of high-speed rail. For example, orders delivered from Beijing to Guangzhou by CRE in less than 24 hours are expected to cost more than 10 percent by air.
Dangdang speeds up: cooperates comprehensively with courier giants
Speaking of the citywide logistics, Dangdang strengthened the cooperation with large-scale third party logistics companies at the beginning of the year for the purpose of promoting the delivery speed and service upgrade. In this way, Dangdang’s service, “111 super speed delivery,” which has covered 400 cities, is a fundamental shift from the traditional outsourcing logistics with low efficiency.
One of the most important steps is the cooperation between Dangdang and large express companies. Dangdang breaks through the logistics value chain, let the couriers enter warehouses and sort orders, and realize a coordinated process from warehousing to delivery. Currently, the number of the delivery cities surpasses 1,800.
Dangdang’s vice president Yao Danqian stressed, “The mode in the past year proves that openness is better than isolation, cooperation is superior to competition. Openness and coordination between E-commerce industry and logistics industry is the general trend. Dangdang will further play the advantage of this pattern, deliver faster than self-built logistics, and accelerate the market expansion of the 3rd and 4th tier cities.”
On the scene, express delivery giants such as Shentong, Yuantong, Zhongtong and Yunda signed strategic cooperation agreements with Dangdang to increase preferential policies, optimize processes, open data and improve collaborative management, compelling the service “111 super speed delivery” to cover more cities and accelerate delivery speed. At the same time, all the parties will cooperate closely with Dangdang on the aspects of individuality service standards, customer delay compensation, logistics sharing between vendors, and mobile technology development.