JD.com and Saudi Electricity Company Announce Strategic Partnership to Enhance Logistics and Supply Chain Management

June 6, 2024 -- JD.com (also known as Jingdong) announced a strategic partnership with Saudi Electricity Company (SEC), the largest producer, transmitter, and distributor of electrical energy in the Middle East and North Africa. This collaboration aims to transform the logistics and supply chain management across the region through in-depth cooperation in intelligent logistics and digital supply chain solutions.

Signed in Riyadh, the collaboration leverages advanced integrated supply chain services and extensive international logistics capabilities of JD Logistics, JD.com’s logistics arm. This includes the implementation of state-of-the-art automation technologies in dozens of SEC’s warehouses, all designed to meet the stringent demands while enhancing safety, environmental sustainability, and low-carbon standards. JD will assist SEC in digitally and intelligently upgrading its Warehouse Management System (WMS) and Warehouse Control System (WCS). Applying cutting-edge technologies such as AI and IoT, this upgrade will facilitate multi-device collaborative operations and ensure real-time, automated inventory management.

A JD Logistics’ self-operated warehouse in the Middle East

Managing over 10 million SKUs, JD.com maintains a industry-leading 29-day turnover rate. Leveraging its advanced digital supply chain solutions, JD will support SEC in strengthening centralized scheduling and management while enhancing collaboration and resource sharing across a national warehouse network. Utilizing JD’s intelligent supply chain control tower system, the initiative will also explore innovative solutions in logistics intelligent warehousing management systems and intelligent predictive replenishment. These efforts aim to comprehensively improve operational efficiency, enhance cost control, and optimize overall management standards.

Inside a JD Logistics automated warehouse

JD Logistics will also provide SEC and its affiliates with services including warehousing and distribution, based on its local warehouse network and fulfillment capabilities, for raw materials, semi-finished and finished products, documents, daily necessities, and more. Currently, JD.com operates over 120 bonded, international direct mail, and overseas warehouses globally.

Yan Cheng, Head of JD Logistics Technology Business, said, “Partnering with Saudi Electricity Company marks a milestone in setting new benchmarks in logistics and supply chain management. This partnership is a testament to our dedication to using our global logistics expertise to drive significant enhancements in efficiency and sustainability.”

Khalid AlGhamdi, Executive Vice President of Technical Services, said, “JD’s proven track record in delivering exceptional logistics solutions makes them an ideal partner for SEC as we continue to innovate and improve our supply chain operations. This strategic partnership is a key component of our vision to modernize our logistics frameworks and enhance service delivery across the region.”

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