Last mile delivery automation

1. Autonamous automation in
last mail delivery

2. Bringing the Power of AI and Robotics to
Last-Mile Delivery (LMD)

3. JD.COM – Who Are We?
A Technology and Service Enterprise
with Retail at Our Core
 China's largest retailer, online or offline by revenue
 World’s third largest internet company by revenue - $67.2 bn in 2018
 More than 330 million active shoppers
 Renowned zero-tolerance policy against counterfeits
 JD Logistics – Self-operated nationwide logistics network with unparalleled reach, speed and
customer service – down to the Last Mile!

4. LMD: Challenges and Opportunities
Challenges Opportunities
 Expense: Last-mile delivery costs are
substantial – up to 53% of total
shipping costs*
 Complexity (infrastructure, routing,
traffic, lack of control, other
complications)
 Security
 Customer satisfaction – missed
deliveries tarnish the brand
* Business Insider report 5/2018
 Incentive to build integrated
fulfillment networks
 Create optimum operating
model for delivery
 Technology innovation
 Delighted customers will buy
more

5. Fast and Efficient LMD
哈尔滨
长春
呼和浩特
银川
兰州
石家庄
太原
大连
济南 青岛
郑州
济宁
宿迁
南京
合肥
杭州
台州
南昌
长沙
贵阳
昆明
南宁
柳州
茂名
厦门
深圳
重庆
天津
潍坊
襄阳
绵阳
海口
苏州
南通
宁波
金华
汕头
佛山
唐山
固安
福州
北京
沈阳
武汉
西安
成都
上海
广州
南充
自贡
Nationwide Logistics Networ乌鲁
k
木齐
 More than 650 warehouses
including 25Asia #1
logistics parks
 Fast delivery in 2 hrs
 Same-day and next-day delivery
 Covering a population of 1B
 90% of orders
Technologies and Innovations
 Big-Data-driven logistics
network development
 Real-time delivery planning
 LMD automation
Small to
Medium
Oversized
Cold Chain
 RDC, FDC, TDC, DS
 Optimized inventory placement

6. AI has created value for retail and logistics
$3.5~5.8 trillion
Annual value across sectors created by AI
Source: McKinsey & Company
The potential value of AI by sector
Aggregate dollar impact ($ trillion) Impact as % of industry revenues
Retail 3.2-5.7
4.9-6.4
Transport &
logistics
0.4-0.8
0.4-0.5

7. A3I – Application-Driven Agile AI
Smart devices
Supply Chain
Customer experience
Marketing
Logistics
Last-Mile Delivery

8. Global Leader in Logistics Innovation
World’s 1st e-commerce company
to commercially deploy drones
Pioneering urban delivery with
autonomous delivery robots
Leader in warehouse
automation

9. Intelligent and Efficient HMI
Directions for Intelligent LMD System R&D
Social & Computation Robotics
Knowledge and Data-Driven
Planning and Control
Multi-modal Self-Adaptive
Perception
HMI
You first!
Intelligent System
Prediction
Perception Planning
Control

10. Autonomous Delivery Robot
Large-Scale Simulation
Adaptive Control
Perception & Localization
Intelligent Planning
Mapping Service

13. Opening up: From empowering JD to empowering others

23. eGrocery's percentage of total
grocery spending
2017
2016 2018
3.4%
4.5%
5.5%
22%
Online sales in 2017
and projection for 2022
0
100
200
300
400
2017 2022
$150b
$334b
2x

24. Change
in
EBIT
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
5% 20% 25%
15%
Online penetration
Impact of online growth in grocers' profits
Impact of online grocery shift on total EBIT (earnings before interest and taxes) by level of incremental sales.
10%
75%
50%
25%
0%
Industry is here