Original link: https://www.latepost.com/news/dj_detail?id=1597
“LatePost” exclusively learned that JD Logistics is undergoing a new round of organizational adjustments: the establishment of four independent business divisions including supply chain, express delivery, express delivery, and international business. In addition to these four businesses, sales, products, operations and other functions also have independent departments to support business development; after the adjustment, the above functional departments will be merged into the four major business divisions, and there is no need for cross-departmental communication between them and the business , the synergy efficiency will be improved.
JD Logistics also canceled the regional organization model that was originally divided into seven regions. In the future, each province will become an independent business unit, and the person in charge of the province will have greater rights in business decision-making, management, and personnel appointment and removal, and will report directly to the head of the relevant business department at the headquarters.
For example, the reporting line of JD Logistics in the past was: headquarters-region-province-region-site. After this adjustment, the level of the region will cease to exist, and the reporting line will be transformed into headquarters-provinces-regions-stations. The reporting level between ordinary employees and JD Logistics CEO Yu Rui has been reduced from level 4 to level 3.
JD Logistics previously operated more than 1,500 warehouses in seven regional branches across the country, with more than 390,000 employees, including more than 370,000 front-line employees. Its core business mainly includes: large-scale express delivery and small and medium-sized express delivery services for individual consumers and enterprises; integrated supply chain solutions for enterprises, including business consulting, inventory optimization, national network planning, warehouse management, transportation and distribution A full set of supply chain services to returns and exchanges.
The last time JD Logistics underwent such a large-scale organizational change occurred in 2020. At that time, JD Logistics upgraded its organizational structure to 7 regions across the country, 8 front offices and 7 middle and back offices.
A year later, JD Logistics went public. Two weeks before the bell was ringing, at the logistics group’s internal management meeting, someone asked Liu Qiangdong, what is the biggest challenge for JD Logistics in the future? Liu Qiangdong, the founder of JD.com, answered two points: “The first is the implementation of the Big Boss management model; the second is whether we will be abandoned by technology, because we have not kept up with the development of technology and lost opportunities.”
The Big Boss management model is a management mechanism implemented by JD Group since the beginning of 2019. It was proposed by Liu Qiangdong. It intends to delegate power to the front-line team from the group level, so that grassroots organizations can make independent decisions and give full play to organizational vitality. In 2018, this mechanism was the first to be piloted in JD Logistics.
At first, in order to let the owners of the logistics sites better understand the Big Boss mechanism, the person in charge of the Central China region said to them when visiting the four provinces in Central China: “In the future, you will be like bosses. The better your business is, the more profits you will create for the company. The more you get, the more you will get.” For example, if a site earns 500,000 yuan a month, the webmaster’s income will exceed 10,000 yuan.
However, at that time, the person in charge of each province could not decide how to recruit people and how to set targets for the subordinate business lines, all of which required the final decision of the person in charge of the large region. Now that the heads of the provinces have these rights, the management efficiency and flexibility of each province will also be improved accordingly. A person from JD.com said that this organizational adjustment is precisely to further implement the group’s Big Boss mechanism.
According to “LatePost” understanding, this organizational adjustment does not involve the layoff of personnel.
A JD Logistics employee said that because the Provincial Headquarters did not have sufficient control over the business line, the coordination ability of the business line was not strong. Later operating costs are high. In the future, the province may be able to solve this problem after it has more operational decision-making power.
JD Retail also made similar organizational structure adjustments this week: the business group was cancelled, the head of the original business group will serve as the head of the business department, and the reporting level of ordinary employees is also reduced by one level. In addition, each business department under the control of the original business group will be divided into specific combat units according to subdivision categories, and the category leaders will be given more decision-making autonomy, including the right to appoint and remove personnel, so as to stimulate the enthusiasm of employees of small combat units. positivity.
At the end of last year, Liu Qiangdong carried out a series of actions after his strong return. He implemented the “low price” strategy in the retail business, and personally led the organizational structure adjustment of the retail and logistics business this time, which is also a further deepening of JD.com’s business philosophy. This is a top-down organizational change and business iteration, perhaps to answer a question: How can Jingdong, which has been established for 20 years, remain competitive in the next 20 years?
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