ABSTRACT

Yihaodian (YHD) is a leading Business to Consumer (B2C) e-commerce company in China. This chapter introduces the company's supply chain strategy and its innovations on supply chain models. It focuses on supplier logistics centers, pallet pooling services, aggregated supplier delivery, and cross docking logistics. Due to its advanced supply chain design, Yihaodian accomplishes eighteen inventory days-on-hand and 8% stock-outs leading the e-commerce retailers. For retailers, regardless of what the front-end looks like, how the products are presented, whether it is online or offline, and what marketing methods are deployed, the core business of retail is to deliver a desired product to the customer at a certain time and location while ensuring its quality. On the other hand, Tmall and Jingdong Mall (JD) takes building its own supply chain system even more seriously. With the rapid development of e-commerce and the constant expansion of online product offerings, online retailers are increasingly under pressure to expand their warehousing capacity.