(Yicai Global) Nov. 22 -- The logistics platform under Chinese e-commerce giant JD.com Inc. [NASDAQ:JD], JD Logistics, will offer its services for a Chinese subsidiary of multinational food firm Danone SA [EPA:BN] and build a shared warehouse to improve the company's distribution efficiency, JD.com said on social media.
JD Logistics struck the deal with Danone Waters China, under which it will offer up its nationwide logistics infrastructure and warehousing services to the drinks firm. The pair will also team up to build a shared warehouse in Chengdu, in the southwestern province of Sichuan, to store and distribute Danone's products.
"Danone Waters China will allow Danone's products to cover more consumers in China and reach consumers faster by relying on JD.com's powerful supply chain," said Lv Hanvin, head of supply chain at the drinks company. "The shared warehouse in Chengdu is an explorative innovation of both parties into logistics."
The cooperation between JD Logistics and Danone Waters China has greatly improve the latter's inventory management in the field of fast moving consumer goods, said Tang Wei, vice president of JD.com. "In future, JD Logistics will build an open platform to share its infrastructure, technology and service capabilities and seek further cooperation."
Danone currently has seven factories, six sales regions and nearly 300 sales offices in China, spanning a huge chunk of the country, the statement said. JD Logistics covers seven major regions with more than 12 million square meters of infrastructure, more than any of its competitors in the country.