Cainiao Smart Hub Reveals New Business Roadmap

Upgrades to Five Key Business Sectors to Deliver Greater Value-Add to the Ecosystem

Cainiao’s Hong Kong eHub

What is the Cainiao Smart Hub?

With big data and integration of social resources, the Cainiao Smart Hub is Cainiao’s smart infrastructure business comprising regional eHubs, global and domestic warehouses and industrial parks. It focuses on establishing an innovative logistics infrastructure network that leverages technology to streamline supply chain management and cross-border logistics. Located across multiple markets globally, these smart hubs are premium logistics facilities that offer comprehensive logistics, supply chain and asset management services, including investment, development, and property management, to deliver a one-stop smart logistics service for customers.

Cainiao Smart Hub’s 3 Core Business Values and 5 Key Service Sectors

Cainiao Smart Hub’s business roadmap was revealed during Cainiao Open Week 2022’s Smart Hub Day for several business service sectors. From investment, planning and construction, to leasing of facility spaces, a closed-loop infrastructure and business framework consisting of a global network and five business service sectors has been built from the ground up over the past nine years. Thus far, the scale of the asset has exceeded RMB 70 billion or approximately USD 10.38 billion.

Eric Xu, General Manager of Cainiao Smart Hub

Eric Xu, General Manager of Cainiao Smart Hub, said, “The business has always been driven by three core business values — great customer service, quality products, and worthy investment — and powered by technology and innovation.”

Upgrades to the five service sectors across domestic and global logistics, industrial parks, aviation ground services and digital asset management, will allow Cainiao to provide a full range of service capabilities spanning investments, construction, leasing, asset management, and logistics services, to build a digitally-savvy, one-stop service experience for the global logistics and supply chain ecosystem.

I. Streamlining Workflows Within Domestic Logistics Facilities

Presently, Cainiao Smart Hub has established a nationwide smart logistics infrastructure network, with more than 50 integrated logistics parks in major Chinese cities. As part of its core integrated service offerings, the parks offer mid- to high-end warehousing and one-stop distribution services for various types of businesses. Ultimately, the goal is to increase servicing levels across the supply chain to enhance overall accuracy and efficiency of the warehouses.

Cainiao’s Xiasha warehouse

Huang Guijun, Chief Marketing Officer (CMO) of Golinker, said, “Through our partnership with Cainiao’s Xiasha bonded warehouse, the efficiency of warehousing and transshipments has improved through the use of smart warehousing algorithms. Furthermore, we are now able to tap on Cainiao’s cross-border business network, allowing us to globalize and expand our business reach.”

II. Expanding the Smart Logistics Network to Boost Global Trade

Cainiao’s cHub in Long An, Vietnam

Over the past year, the Cainiao smart infrastructure network, consisting of cHubs and eHubs, successfully launched in Malaysia, Belgium, and Vietnam. The network has also been further extended to six smart logistics hubs globally, to include Hong Kong (China), Bangkok (Thailand), Jakarta (Indonesia), and more. These developments form the eHub regional smart infrastructure and cHub overseas warehouse networks, in order to facilitate trade and eCommerce activities around the world.

III. Generating Industrial Value with Quality Logistics Park Facilities and Services

Cainiao Smart Park [Under Construction]

With its industrial parks, Cainiao aims to make a difference in creating real industrial value within the ecosystem. To deliver more comprehensive capabilities, it will leverage Alibaba’s network of resources, including global customers and merchants, coupled with Cainiao’s innovations, sales channels, and supply chain capabilities, to establish a hub for industrial services and a demonstration facility for the global markets. Cainiao’s integrated service framework encompassing digitalization, resources, and the broader ecosystem will serve as the centers of excellence (CoE) for the new digital economy across eCommerce, technological innovation, and digitalization.

IV. Enhancing Cross-Border Trade with Aviation Ground Services

The Cainiao Smart Hub will provide highly efficient, reliable, and safe full-chain air cargo terminal operation services and aviation logistics parks. This facility is intended to provide customizable services, so that customers and merchants can export their goods overseas with ease.

V. Digitizing Asset Management Systems to Value-Add to Logistics Workflows

Through a series of innovations, such as the smart asset management system, smart logistics parks, and smart warehousing facilities, Cainiao Smart Hub will provide best-in-class, full-chain digitization capabilities for various assets along the supply chain. The adoption of this service applies to the expansion of logistics parks, construction, leasing of the space, investments, and internal operations, which translates to better customer services at its core.

Yang Quansen, General Manager of Sichuan Rentong Medical Company Co., Ltd., said, “Digitizing service management service systems has helped us consolidate our medical goods in a way that is more organized and efficient. Our operational efficiency has improved by 20 percent and energy usage has reduced by 50 percent since we began using Cainiao’s smart equipment.”

To hear Eric Xu’s full speech during the Cainiao Open Week, click here.

Follow Cainiao Network on LinkedIn to stay updated on the latest developments.

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