It turns out that the delivery of the first bulky good order on Tmall "Double 11" shopping spree was done by Goodaymart Logistics for three consecutive years，which cost less than 20 minutes. Initially being Haier' logistics company, Goodaymart Logistics accepted Alibaba's investment and began to create its logistics system in the end of 2013, and developed to be a leading company in the bulky logistics area, how did Goodaymart make it?
1. Three Key Differences behind "Fastness"
Small vehicles, low-cost coverage of all counties. Goodaymart Logistics' delivery system of bulky household commodities covers 2,915 counties nationwide, which cannot be made possible by traditional way of distribution and storage due to their extremely high costs of fixed asset investment and management. Yet, Goodaymart Logistics launched the project of "small vehicles" in 2014, the project allows eligible social vehicles, service centers of home appliances and logistics companies to be independent business entities by means of crowdsourcing. Through random distribution of orders by the system and competition-based answering by the deliverymen, Goodaymart Logistics has addressed the problem of last-mile delivery, which is the most difficult part in terms of e-commerce logistics. For now, Goodaymart Logistics has a total of 900,000 vehicles across China, with 70,000 deliverymen online on peak.
2. Cloud warehousing and sharing inventory guarantees nearest delivery.
At present, distributed warehousing has been the standard configuration of e-commerce, and yet in terms of bulky goods, there are few logistics companies with multi-level warehouses and corresponding distribution systems nationwide. Goodaymart Logistics has established a three-tiered cloud distribution and warehousing system, which bears the following hallmarks: First, it lays out a cloud system of supplier warehouses (10 front warehouses), regional warehouses (5 CDC warehouses and 31 RDC warehouses) and urban warehouses (100 TC transfer warehouses), which works together with 6,000 hubs for bulky goods stocked by businesses in advance, and thus overnight delivery can be guaranteed; second, different tiers of warehouses enjoy inventory sharing, which means the system will select the nearest warehouse to deliver goods based on order information, and hence the distribution efficiency has been improved, while minimizing the damage caused to the goods by repeated transshipments; third, the warehouses enjoy smart management, with the introduction of unmanned intelligent warehouse and electronic order processing technology, the commodity storage, shelving, access and delivery are all accomplished by automated equipment under the guidance of algorithm, which has substantially ratcheted up the efficiency and accuracy of the warehouse operation.
3. Big data makes smart operation possible.
The satisfactory delivery services provided by Goodaymart Logistics has been empowered and enabled by such technologies as big data, information systems and Internet of Things. First of all, the prediction of consumer behaviors by big data serves as the key to make distributed warehousing possible, especially to the peak management during shopping sprees. Take "Double 11" as an example, based on the pre-order information, goods can be accurately transported to the nearest warehouse even before the shopping spree kicks off. Secondly, eight on-cloud management systems, such as OMS, TMS, WMS and App guarantee the network operation of the whole logistics system. With the aid of algorithm, the system carries out warehouse distribution, planning of delivery path and automatic management of delivery capacity. In the end, automatic identification, GPS and other Internet of Things techniques provide bottom-line support and lay a foundation for achieving unmanned operation, vehicle monitoring, order tracking and other smart applications.
1. Systematically Optimized User and Business Experiences.
The customer side adopts "eight-pronged" standards. In terms of consumer experiences, there is an essential difference between logistics for bulky household goods and ordinary express delivery. For common online shopping, consumers are most concerned about delivery efficiency, while for consumers of bulky household goods, efficiency is merely a basic factor and consumers are more focused on whether they can enjoy door-to-door services, on-site installation and punctual delivery, etc. In 2016, Goodaymart Logistics, in conjunction with the Standardization Association of China, made the first service standard for the whole process of bulky household commodities logistics, incorporating "warehouse, main line transport, delivery, installation, canvassing, identification, repairing and visiting", which is abbreviated as "eight-pronged" standards, and further classify the consumer experiences into 25 indicators. On that basis, Goodaymart Logistics made extensive innovations with tangible results on such three fronts: First, on time delivery. Due to the fact that bulky goods cannot be placed in the express cabinet and some even need to be installed, thus consumers must receive the delivery on their own. Goodaymart Logistics provide such services as on time delivery and night delivery, thus making the office workers out of trouble; second, as for installation, especially in term of air-conditioners and other household electronical appliances, the present industry practice separates delivery and installation and an appointment must be made after the commodity delivery is completed. Yet, the integrated services of delivery and installation provided by Goodaymart Logistics was ground-breaking in the industry; third, the optimization of return and after-sale services. Goodaymart Logistics provides after-sale services for businesses, which lowers the after-sale costs of businesses and mitigates consumers' worry about after-sale service.
2. Business side access supply chain services.
For businesses, Goodaymart Logistics crafted differentiated solutions for them based on furniture, household appliances, fitness and travels with the aid of the "small and micro businesses" incubated on their platform. Take the "Double 11" shopping spree in 2017 as an example, Goodaymart Logistics has made a total of 16 strategic plans with multiple highlights, ranging from "how to improve sales of sellers, operation strategy and logistics". First, seven warehouses cover the entire China. Compared with the traditional nationwide coverage by 31 warehouses, as efficiency lags only one day behind, it significantly allays the distribution pressure of sellers and lowered their costs of direct selling; second, Goodaymart Logistics adopts a total of 18 warehouses to achieve two-way coverage, i.e., urban warehouses can make a reverse replenishment to their upper-level warehouse, and such a model can lower the shortage rates to 5%-10%; third, capacity control. Based on the last-mile delivery and installation capacity of each region and county, they control the required delivery date of the front-end users, so as to control the capacity of daily delivery of bulky goods. fourth, a visualized system was established through which sellers can have a clear look at the shipment rate of every commodity transportation routes and order fill rate. In addition, they also made some improvements in commodity warehousing, multi-warehouse operations, downward inventory distribution, electronic orders and so on.
Goodaymart Logistics has gone through three such stages as "enterprise logistics, logistics enterprise and logistics platform". At present, they endeavor to build an open platform for entrepreneurship by on the concept of "platform-based businesses, customized programs and scene-based services", and proceed to create a logistics ecology. In October this year, Goodaymart Logistics initiated the Alliance of Trusted Logistics Brands for Bulky Commodities, joined by branded suppliers, service providers, logistics companies, technology and capital entities. In the declaration of the Alliance, they made eight promises including "speedy delivery, all-coverage delivery, punctual delivery, overtime compensations, in door delivery, village delivery, professional services and installation for free". In the context of consumption upgrading, the proportion of bulky household appliances has seen a rapid rise. Prior to 2014, the portion of bulky goods during the "Double 11" on Taobao and Tmall only accounted for 4%-5%, which exceeded 20% in 2016. According to industry projections, up to 40% of bulky goods sales will be generated online by 2020. With same service philosophy, industry standards, data exchange and resource sharing in the logistics ecology, Goodaymart Logistics is poised to serve and brace the booming online market of bulky household commodities.