Agility and its digital innovation arm, Shipa, have signed a memorandum of understanding with JD Logistics, the supply chain and fulfillment arm of China’s largest retailer, JD.com, to collaborate on logistics in fast-growing e-commerce markets.
Agility and JD Logistics will work together to make it easier for consumers in some of the world’s fastest growing markets to get access to JD’s product range and products offered by JD Logistics’ merchant partners. The new agreement focuses on cross-border logistics, and procurement and retail. It covers markets in Southeast Asia, the Middle East, Europe and Africa.
In Southeast Asia, Agility will act as a cross-border business-to-consumer (B2C) trunk service provider, utilizing its strong air and ocean freight capacity, and will also act a local business-to-business (B2B) warehouse provider.
In the Middle East and Africa, Agility will act as JD’s primary logistics service provider and will handle terminal customs clearance and delivery services for its B2C line, helping JD Logistics improve its local logistics system and build a more complete transportation service network. Jointly, Agility and JD Logistics will build door-to-door cross-border and local B2C services.
In addition, Agility and JD will also cooperate in retail and procurement by promoting high-quality products made or assembled in the Middle East and Africa to Chinese sourcing merchants, and creating more sales channels for Chinese merchants. Agility will also help strengthen JD’s international supply chain.
Henadi Al-Saleh, chairperson of Agility, said: “Agility has a long record of providing specialized services in emerging markets. By partnering with JD Logistics, we will leverage our respective strengths to make it easier to connect the businesses looking to tap the consumer demand in fast-growing markets such as ASEAN and the Middle East with the vast supplier base in China.”
Zhenhui Wang, CEO of JD Logistics said: “JD Logistics is committed to bringing China's leadership in e-commerce through modern supply chain systems, technology and operations, and management experience. By partnering with Agility, we will provide customers with a variety of transportation services for ocean, land, air and rail, helping us design the optimal logistics solution to reduce costs and increase efficiency for customers."
The MOU was signed at JD Logistics’ 4th Global Supply Chain Summit in Beijing. The summit focused on the impact of advanced technologies on the global industrial economy and examined how artificial intelligence, big data, cloud computing and blockchain will affect economic and social development.