4.6 Article

Strengthening supply chain resilience during COVID-19: A case study of JD.com

Journal

JOURNAL OF OPERATIONS MANAGEMENT
Volume 69, Issue 3, Pages 359-383

Publisher

WILEY
DOI: 10.1002/joom.1161

Keywords

COVID-19; operational strategy; supply chain resilience

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The COVID-19 outbreak has severely affected global supply chains, including the retailing supply chains in China. However, JD.com has effectively responded to the exceptional demand and logistical disruptions through its comprehensive intelligent platforms and integrated supply chain structure. The joint efforts of multiple firms, the government, and the entire Chinese society have also played a crucial role in controlling the market situation in China.
The coronavirus/SARS-CoV-2 (COVID-19) outbreak has caused severe supply chain disruptions in practically all industries worldwide. Online e-commerce platforms, which interact directly with various industries and service numerous consumers, have become remarkable interfaces to observe the impacts of the pandemic on supply chains. Using quantitative operational data obtained from JD.com ., this study analyzes the impact of the pandemic on supply chain resilience, summarizes the challenging scenarios that retailing supply chains experienced in China, and presents the practical response of JD.com throughout the pandemic. To summarize, the pandemic caused exceptional demand and severe logistical disruptions in China, and JD.com has handled well its supply chain management in response based on its integrated supply chain structure and comprehensive intelligent platforms. In particular, the existing intelligent platforms and the delivery procedures were modified slightly but promptly to deal with specific disruptions. Moreover, the entire market scenario in China was effectively controlled through the joint efforts of multiple firms, the government, and the entire Chinese society. Our study provides an example of using practical operational indicators to analyze supply chain resilience, and suggests firms pay attention to operational flexibility and collaboration beyond supply chains to deal with a large-scale supply chain disruption, such as the COVID-19 outbreak.

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