Guanguan.com JD Logistics is grabbing more market share through recruitment expansion.
In early March, the newly revised "Express Delivery Market Management Measures" by the State Post Bureau were officially launched. Adjustments were made in seven aspects, including strengthening the regulation of express delivery services and strengthening market system management requirements. The market was suddenly in an uproar.
However, the introduction of new regulations has not affected the mentality of players on the market. Just as the industry is busy adapting to the new version of the "Express Delivery Market Management Measures", JD Logistics has launched a new round of employee recruitment.
Guandian New Media learned that JD Logistics has launched a "10,000-person recruitment plan" and is expected to recruit approximately 20,000 new employees in the first half of 2024, mainly focusing on supply chain, operations, management, sales and other directions.
In addition, JD Logistics will introduce a group of grassroots business employees through a series of recruitment projects, including grassroots managers, reserve management talents, front-line operators and other personnel.
Competition behind recruitment expansion
Specifically, JD Logistics’ recruitment project mainly includes three major sections: “BOSS Post”, “Frontline Operations”, and “Young Cadre Class”.
Among them, the "Young Cadre Class" is mainly to support regional business transformation and long-term business development. It only recruits fresh graduates of 2024 who graduated between October 1, 2023 and September 30, 2024. Logistics positions include comprehensive operations management, comprehensive operations management, and sales. On March 4, JD Logistics further launched the "New Star" program and is also recruiting fresh graduates. The targeted training cycle for new stars is two years. Previously, JD Logistics has recruited tens of thousands of college graduates through this program.
The "Boss position" is mainly the recruitment of front-line managers by JD Logistics. It is reported that in 2023, the maximum multiple of the year-end bonus for front-line Boss positions will exceed 20 times. After checking the recruitment information, Guandian New Media found that JD Logistics’ recruitment for the above two projects has begun in October 2023. The latest batch of positions was announced on March 5, with more than 15 positions, most of which are sales and supply chain positions.
Although this recruitment is huge, judging from the specific recruitment situation, the main manpower that JD Logistics wants to increase this time is focused on sales, express logistics planning and other businesses. Guandian New Media extracted some positions from the recruitment directory for analysis, trying to understand the changes in business details behind JD.com’s recruitment.
On March 1, JD Logistics put the express delivery planning position on the table, with the purpose of researching and optimizing the land transport transit model responsible for the express express network in some provinces and regions. Line planning and transportation resource coordination will follow up the integration planning of multiple network lines from a global perspective to improve the network's comprehensive capabilities; optimize the layout of major regional line networks; through network structure adjustment, reduce cargo transfers, increase line loading rates, optimize express express network structural costs, and formulate mid- and long-term route planning plans.
There are two key points in this recruitment requirement: first, the key points of land transportation include fast time, short mileage, and few links; second, the selection of transfer points, transportation methods, and transfer transportation costs must be reasonable, and the related costs can be controlled.
After JD Logistics acquired Deppon, its advantages in transit resources and other aspects have improved, but in order to further enhance timely services, it will invest another sum of money to obtain additional resources.
JD Logistics’s considerations are reflected in cost data. From the perspective of cost composition, JD Logistics’ outsourcing costs account for a relatively high proportion in 2023, which mainly include third-party transportation companies, express companies and other service providers for sorting, transportation, distribution and labor outsourcing services. The fees charged for this segment increased by 16.9% from 51.6 billion yuan in 2022 to 60.3 billion yuan in 2023. This was partly driven by the need for more outsourcing services due to business growth, and was also attributed to Deppon's consolidation increase throughout 2023.
From this point of view, JD Logistics still has a lot of room for optimization at the cost level, and the fundamental way to improve the cost problem is to start from the express delivery planning and execution level.
In addition, among the job requirements for product planning manager, JD Logistics requires 3-5 years of work experience in 3PL logistics (third-party logistics) planning, standard product promotion and other positions, and familiarity with experience in at least two industries in cloud warehouses, self-operated warehouses, cold chain, large items, and delivery warehouses.
When it comes to the 3PL logistics supply chain, it returns to the level of outsourcing costs. Judging from the above data, JD Logistics' investment in this cost has indeed increased compared with 2022. However, from a business development perspective, the increase in outsourcing costs and 3PL logistics has a positive correlation with JD Logistics' total revenue in 2023.
Salary increase behind increased revenue
In 2023, JD Logistics' total revenue increased by 21.3% to 166.6 billion yuan from 137.4 billion yuan in 2022. The announcement showed that the increase in its total revenue was driven by the increase in revenue from integrated supply chain customers and the increase in revenue from other customers.
Specifically, revenue from integrated supply chain customers increased by 5.2% from 77.4 billion yuan in 2022 to 81.5 billion yuan. "The increase in revenue from integrated supply chain customers is mainly attributed to the increase in revenue from JD Group; and driven by the increase in revenue from external integrated supply chain customers, which comes from the year-on-year increase in the average revenue of a single customer."
According to JD Logistics, the increase in revenue reflects customers’ recognition of its integrated supply chain solutions and logistics services. In fact, the recruitment of 3PL logistics-related positions stems from JD Logistics’ focus on the supply chain, especially the integrated supply chain. Last year, JD Logistics even deployed a number of logistics projects to support the development of its integrated supply chain, including Jingning Digital Logistics Park, JD Bayannur Sorting Center, Dengzhou Smart Logistics Port, Lanzhou New District JD Logistics "Asia No. 1", etc.
In JD.com's recruitment catalog, there are still some positions related to its self-operated distribution. Guandian New Media asked several people in JD.com's logistics and distribution services industry. They all said that the current distribution business has not been affected much by the new express delivery regulations, only whether there are new delivery personnel. "It is common for new people to come and old people to leave at express delivery sites. It is normal for new delivery people to come online."
The issue of salary increase was also mentioned, but there was no positive reply from the industry.
However, according to an article previously published by JD Recruitment, on February 5, JD Group announced that starting from February 1, 2024, more than 20,000 JD front-line customer service employees will achieve an annual average salary increase of more than 30%. Guan Guan New Media tried to ask JD Logistics customer service about the salary increase, and the answer was, "There has indeed been an increase, and it happens to be the salary increase last year."
Regarding JD Logistics' increase in labor costs, we can also observe from its operating costs in 2023. This data increased by 20.9% from 127.3 billion yuan in 2022 to 153.9 billion yuan, which is consistent with the growth trend of revenue during the corresponding period.
"Employee compensation and benefit expenses for employees involved in operations such as warehousing management, sorting, picking, packaging, transportation, distribution and customer service increased from 44.6 billion yuan to 55.3 billion yuan. This was partly driven by the increase in the number of operating employees, which is consistent with the continued growth of our business."
JD Logistics's consideration of salary increases is divided into several levels. Some analysts believe that JD Logistics's large-scale recruitment is intended to strengthen its strength in the field of direct logistics to cope with increasingly fierce market competition. In addition, choosing to raise wages before the year can also largely avoid the problem of losing some employees after the year. Furthermore, news of salary increases can also be used to attract a new wave of employees to face the pressure caused by the increase in express delivery orders after the year and the temporary shortage of some express delivery salesmen.
Data show that the express delivery industry will continue to maintain a steady upward trend in 2024. It is expected that the national express delivery business volume will reach 142.5 billion pieces in 2024, with a growth rate of about 8%. In addition, data released by the State Post Bureau showed that in January, the national express delivery business volume completed 14.70 billion pieces, a year-on-year increase of 84.8%.
Therefore, JD Logistics’ recruitment expansion is reasonable. At a time when competition is maintained and business volume is growing, supplementing relevant personnel is a top priority. As of the end of 2023, the total number of employees of JD Logistics has reached 457,000, including 436,200 operating personnel, accounting for 95.4%, and 10,000 sales and marketing personnel, accounting for 2.2%; the number of operating personnel involved in the "last mile" of its own distribution is close to 350,000, and it operates more than 19,000 distribution stations and outlets.
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