GEM and JD.com have reached a strategic cooperation to build a digital recycling platform to facilitate large-scale “old-for-new”
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Recently, GEM Co., Ltd. (hereinafter referred to as “GEM”), a leading company in the circular economy, signed a strategic cooperation agreement with JD.com. Professor Xu Kaihua, Secretary of the Party Committee and Chairman of GEM Group, and Chen Esheng, Vice President of JD Group and General Manager of JD Industrial Manufacturing Business Department, attended the signing ceremony. The agreement stipulates that the two parties will carry out in-depth cooperation in digital intelligence supply chain, digital recycling and consumer goods trade-in platform construction, e-commerce channels, closed-loop supply and consumption of green low-carbon recycling materials, etc. This move also marks that the two parties have reached a new height in cooperation in serving the real economy, smoothing the circular economy, and helping to create new productivity in the renewable resources industry.
Helping GEM’s digital and intelligent upgrade of global supply chain to reduce costs, increase efficiency and ensure supply
At present, promoting new industrialization has become a strategic direction for the upgrading of the manufacturing industry. The digital intelligence of the supply chain is one of the indispensable elements of new industrialization. This is especially true for GEM, the world’s leading company in the field of waste resource recycling.
GEM was founded in 2001. It has 19 waste recycling factories and new energy material manufacturing bases in 11 provinces and cities in China, as well as Indonesia, South Korea, South Africa and other places, with an annual output value of over 30 billion yuan. As a typical manufacturing enterprise, procurement is one of the most important aspects of GEM’s production and operation costs. However, with the growth of business scale, the complexity of the supply chain is increasing day by day, and the needs for cost reduction, efficiency improvement, and supply guarantee are becoming more and more prominent. In particular, the hidden costs distributed in all aspects of the supply chain have become a clear obstacle to companies reducing costs and increasing efficiency.
After cooperating with JD Industrial and relying on Taipu Digital Supply Chain Solution, GEM has realized full-link digitization from goods, procurement, contract fulfillment to operation in both domestic and overseas supply chains, not only optimizing commodity prices and inventory costs, It has also successfully carried out in-depth transformation of industrial collaboration methods, significantly reducing hidden costs such as time, management, and operations.
Domestically, JD Industrial has customized a front-end warehouse collaborative delivery cost reduction plan and a federated supply chain cost reduction plan for GEM’s 15 parks. Among them, the front warehouse is a new generation of infrastructure built by JD Industrial, which can be directly deployed near the GEM factory and equipped with dedicated personnel and vehicles for management and service. Every month, the front-end warehouse will analyze and predict the material consumption of GEM Park in advance, and re-plan the inventory in the warehouse. The materials involved will be sent to the front-end warehouse in advance for temporary storage. After the production line initiates a purchase demand, a dedicated person and a special vehicle will be dispatched as soon as possible. Delivered to the factory, greatly optimizing the procurement process and shortening the procurement cycle. The Fed Fed solution can use technology to break the traditional siled procurement model of each park and achieve an overall coordinated reserve/purchase plan, thereby achieving shared reserve and sharing of inventory, reducing duplicate reserves and excess reserves, and reducing overall supply chain costs. .
Overseas, JD Industrial can provide GEM with accompanying overseas services to help it achieve efficient supply guarantees in overseas parks. For example, GEM has built the Qingmeibang Park in Qingshan Industrial Park in Indonesia. Its main business is nickel ore hydrometallurgy. A large number of materials required for the park will be purchased centrally in China. After demand submission, domestic inquiry, approval, and shipping data review, After collecting the goods and other processes, complete the customs declaration at the domestic port and ship directly to overseas by sea. In the past, because every domestic purchase order required tedious processes such as clarification of product specifications and price comparisons, and three-party price comparisons, the entire procurement cycle lasted 38-57 days. In addition, due to qualification issues, export authorization cannot be provided for some products, and they cannot enjoy China’s export tax rebates and importing country tariff reductions, further leading to an increase in procurement costs.
After cooperating with JD Industrial, GEM Indonesia’s Qingmeibang Park has realized digital demand submission and inquiry for the first time. Some products can even be ordered directly, greatly shortening the communication and decision-making cycle; JD Industrial provides export authorization, which can also be enjoyed Export tax rebates to China and tariff reductions and exemptions in importing countries. Statistics show that relying on JD Industrial’s “accompanied overseas” service, the comprehensive procurement efficiency of GEM Indonesia’s Qingmeibang Park has increased by 30%, and the procurement cost of some commodities has been reduced by 18%.
Build togetherDigital recycling platform drive massconsumer goods“trade-in“implement
Another important part of the cooperation between GEM and JD.com is to jointly build a digital recycling and consumer goods trade-in platform. This is also an innovative attempt by both parties in the field of circular economy.
In recent years, with the rapid development of China’s automobile industry, Chinese automobiles, new energy vehicle power batteries, etc. will usher in a scrapping peak. Statistics from the National Automobile Circulation Management Information System estimate that by 2025, the actual number of scrapped cars in my country will reach 15 million to 20 million. In 2025, the amount of power batteries retired in my country will exceed 60GWh, and the market size will reach 10 billion yuan. Recently, the “Action Plan for Promoting Large-scale Equipment Updates and Trade-in of Consumer Goods” issued by the State Council proposed that by 2027, the recycling volume of scrapped cars will approximately double compared with 2023.
One of the difficulties in recycling scrapped cars lies in the establishment of a reverse logistics system. On the one hand, recycling users are relatively scattered and cover a wide geographical area. On the other hand, scrapped automobile parts, power batteries, etc. are special commodities and have high requirements for logistics professionalism. How to efficiently transport scrapped parts from the terminal to the recycling and disposal end is a problem that has long plagued the industry.
Through this cooperation, GEM will work with JD.com to build a digital recycling and consumer goods trade-in platform, focusing on lithium batteries, consumer electronics, electronic waste, scrapped cars and other valuable urban mineral resources, jointly build offline recycling outlets and provide digital Recycling services. Among them, JD Logistics will participate in the establishment of the reverse logistics system, and GEM will be responsible for the efficient dismantling, sorting and processing of recycled materials. On this basis, the two parties also plan to build an end-to-end green cycle system covering the entire life cycle of new energy battery production, storage, sales, transportation, after-sales and recycling, and explore innovative models for cost reduction and efficiency improvement in the logistics and new energy industries. .
Chen Esheng, vice president of Jingdong Group and general manager of Jingdong Industrial Manufacturing Business Department, said that if a company wants to develop into a chain owner, it needs to establish a digital and intelligent supply chain; only the raw materials and parts supplied by the upstream are produced with the highest efficiency and lowest cost. Cost, the most accurate fulfillment inventory and the least sluggish inventory operation can create strong competitiveness and sustainable development space. In the future, JD Group hopes to deepen cooperation with GEM, innovate the supply chain model, and jointly promote GEM to become an “open, linked, and shared” chain owner enterprise.
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