Cainiao Launches International Express Courier Services as Part of its Efforts to Upgrade End-to-End Logistics Solutions
Key cities in Europe and the US to achieve deliveries in as fast as five days
The rise of eCommerce has facilitated direct interactions between brands/manufacturers and end consumers. This has allowed brands and manufacturers to gain a better understanding of consumer needs and demands, which in turn translated to a shortened R&D and manufacturing process, as well as warehousing and delivery, marketing, gathering of customer feedback and market sentiments etc. In short, this has reduced a typical customer lifecycle and reinforced the need for a flexible supply chain.
Cross-border e-commerce logistics is characterized by small parcel sizes, high frequency and also high fragmentation. Furthermore, social media and short videos platforms have created new sales channels and marketing strategies which add new complexities to order fulfilment — one that is already faced with nuanced logistical challenges and myriad of local compliances varying across geographies. Brands today need to navigate increasing complexities in cross-border eCommerce, logistics and supply chain in order to successfully tap on the overseas markets.
Taking the two popular overseas categories of beauty and fashion as example, beauty products face many restrictions for direct shipping due to local compliance and policies requiring special declarations and approvals, has a high damage rate, and requires stringent management for overseas pre-stocking; in the fashion category, apparels requiring returns or exchange services are often expensive to process and often experience high demand fluctuations subjected to promotional events. This creates a higher inventory risk for this product category.
Upgrading of Global Logistics Network to Support Cross-Border Trade and eCommerce
With the rise of a global economy and a booming eCommerce landscape, Cainiao has earmarked globalization as one of its top three key pillars this year. As part of its globalization initiatives, Cainiao has launched its international express courier services to upgrade end-to-end logistics solutions for merchants and continue its efforts in strengthening global logistics infrastructure development.
“The pandemic spotlighted the importance of stable and efficient cross-border logistics services, as more merchants shift online to tap on a wider overseas consumer base. Brands underwent an evolution to keep up with online demands, whether it’s traditional sectors or new and emerging businesses. In order to expand overseas, there is a need to streamline and digitalize logistics capabilities and services, as well as the cross-border supply chain,” said James Liu, General Manager of Cainiao Export Logistics. “Cainiao will continue its commitment in building a global logistics infrastructure and enhance end-to-end global fulfillment services to better support export merchants in their cross-border businesses.”
At present, Cainiao has six smart logistics hubs around the world that encompass over 3 million square meters of warehousing space, and has more than 240 chartered planes for line haul transportation every month. It also partners over 50 customs clearance facilities to introduce digital customs clearance systems in order to create a superior and highly efficient global logistics network.
At Cainiao’s Open Week event, Liu commented that in order to help brands to sell globally with ease, Cainiao needs to continue its efforts to build a global logistics infrastructure, upgrade international logistics end-to-end fulfillment services to provide international express delivery services, international supply chain and full-chain logistics solutions for international freight. Together, these initiatives will expand international logistics channels for Chinese brands exporting to the rest of the world.
In the area of international express delivery, Cainiao’s service will focus on key countries in Europe and the United States, namely the United Kingdom, Spain, France, Germany and the United States, to deliver in as fast as five working days to overseas consumers. Together with Alibaba’e eCommerce platform AliExpress, Cainiao will continue to optimize its inclusive logistics offerings such as USD10 5-day delivery and USD5 10-day delivery, and introduce additional logistics guarantees such as compensation for late deliveries in order to enhance cross-border logistics experience.
In the area of international supply chain, Cainiao’s overseas warehouse network covers more than 30 countries and regions in Asia, Europe and the United States, with 14 official overseas warehouses in Europe alone. In US, there are multiple overseas warehouses covering the core areas of the east and west coasts, and provide one-stop full chain service including first mile pickup, export customs declaration, international line haul, import customs clearance, multi-modal inventory sharing, local distribution and other services.
In area of international freight, Cainiao provides logistics solutions for air, sea, land and multimodal transportation to achieve end-to-end integrated services, covering door-to-door collection, port allocation, cargo terminal operation, transfers etc.. It also offers services catering to oversized and special cargo that taps on the advantages offered by wide-body aircraft. The new service launched by Cainiao will solve the problems of sorting and prioritizing goods by leveraging smart logistics technology, and to enable express delivery of selected goods.
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