JD Auto and Continental Tires signed a cooperation-upgrading agreement on November 7 at the headquarter of JD.com, under which the two parties would co-build a socialized fulfillment network.
The fulfillment network will integrate Continental Tires’ dealer system with the warehousing and distributing system, using data to reduce the circulation times of tires to cut fulfillment costs while improving turnover efficiency. The network will also help dealers to mitigate overstock and shorten the sales cycle.
The two parties will share their inventory data in 25 Continental Tires front-end warehouses and consumers in Beijing, Shanghai, Guangzhou, and other major cities would enjoy one-hour delivery service.
JD will launch a full range of Continental Tires productions, making it the most comprehensive platform for Continental Tires SKUs. In addition, JD Auto’s over 1400 high-standard stores and 27000 third-party stores will also provide after-sale service for the German Brand.
Haifeng Chen, general manager of JD Auto thinks highly of the partnership noted that JD Auto’s supply chain and Continental Tires’ warehousing and distributing system are like two pieces of the puzzle, and the cooperation between the two sides will work out a perfect blueprint.
During JD’s Singles Day Grand Promotion up to the 7th of November, Continental Tires’ sales have grown 114% YOY.