JD.com signs agreement to handle Unilever logistics in China

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Chinese eCommerce company, JD.com, said it has signed an agreement with Unilever to distribute goods for the latter across China.

JD.com said in a statement that it will henceforth distribute Unilever products such as Lipton’s tea and Lux soap between warehouses across China.

“JD will now help us bring our most popular products to the most hard-to-reach communities in China, securely and quickly,” Rohit Jawa, executive vice president of Unilever North Asia, said in the statement.

China’s JD.com has sought to differentiate itself from bigger rival Alibaba by running all its own logistics, operating over 500 warehouses, and fleets of vehicles, promising it can deliver over 90 percent of orders on the same or next day.

“JD.com knows that they need to increase the density of shipments within their network and they know it is a way to create a strategic and competitive advantage,” said supply chain consultant Brittain Ladd.

“Once a brand is available in China and customers are buying their products, the big challenge is replenishment and warehouses,” the company said.

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