Cainiao Smart Logistics Network has unveiled big moves to speed up deliveries from China to South-East Asia in time for Alibaba Group’s ‘Global Shopping Festival’ online sales extravaganza this month.
Alibaba Group’s logistics unit claims it can now offer same-day deliveries from China to 11 countries in South-East Asia: Indonesia, Malaysia, Singapore, Vietnam, Thailand, Philippines, Pakistan, Nepal, Myanmar, Bangladesh and Sri Lanka. Customers in these countries can receive their goods on the day they place their order by leveraging locally stored inventory.
Cainiao has achieved this dramatic improvement by implementing an in-house technology system ‘Apollo’ that took six months to develop. It claims this enables a tenfold capacity increase at local e-commerce and logistics partners along with a 50% improvement in delivery accuracy and 10% reduction in average costs.
The Apollo system is designed to establish highly efficient standardized logistics operations by Alibaba Group business units as well as partners. The system analyses a vast quantity of data to optimise the parcel’s location and destination, cost factors and the efficiency of logistics partners.
Weicai Chen, Apollo project manager, explained: “Southeast Asia is a dynamic market which is home to a large number of e-commerce and logistics firms, but its overall logistics user experience needs improvements in order to remain competitive and efficient.
“We are committed to digitalising the whole industry by upgrading its logistics technology and infrastructure with our local partners. With Apollo, we will be able to drive the integration of logistics capabilities with e-commerce strategy to cope with the e-commerce boom in the region,” he said.
New Singapore freighter service
Meanwhile, YTO Cargo Airlines, a unit of Chinese logistics partner YTO Express, has launched three weekly freighter services between Hangzhou and Singapore’s Changi Airport. Cainiao will use capacity on the flights to transport e-commerce shipments from China to South-East Asia as part of its aim to speed up deliveries to the region.
YTO Cargo Airlines’ direct airfreight route between Hangzhou and Singapore will improve Cainiao’s stability and efficiency in achieving its goal of global delivery within 72 hours in Southeast Asia, amid a surge in cross-border e-commerce orders. It will also cater for the expected increase in air cargo demand during year-end online shopping festivals such as Singles Day on 11 November, according to Changi Airport Group (CAG).
Lim Ching Kiat, CAG’s head of Air Hub Development, commented: “We are pleased to welcome YTO Cargo Airlines to Changi’s family of airlines. In these challenging times, the additional capacity provided by YTO Cargo Airlines will help support global supply chains and facilitate the transfer of essential goods between countries. As an express carrier, YTO Cargo Airlines will enable fast air transportation of cross-border e-commerce shipments so that customers can benefit from timely deliveries, amid the rise of online shopping and disruptions in the aviation industry.”
David Su, YTO Cargo Airlines chairman, added: “We are delighted to launch our newest route to Changi Airport, together with our shareholder and core strategic partner Cainiao. Singapore is one of the key hubs in the Southeast Asia market, while Hangzhou is the cradleland of e-commerce in China. We are committed to responding to customer demands by providing five-star service and supporting bilateral trade between China and Singapore.”
Cainiao launches South Korea logistics service
Finally, Cainiao has also launched end-to-end logistics and supply-chain services for local businesses in South Korea. The Alibaba Group logistics unit said its first- and last-mile, warehouse management, international shipping, trucking and customs clearance services should reduce delivery times to 5-7 days from the current 10-13 days.
Cainiao is using both its smart logistics platform and technology to digitalize the entire value chain and over 15,000 square meters of strategically located warehouse space near airports and sea ports in South Korea to facilitate the movement of goods for import and export.
The logistics company will handle international shipping between China and South Korea with six ships and six cargo planes weekly.
