Cainiao’s 3 Key Business Pillars in 2022 — Operations, Globalization and Digitalization
2022 is undoubtedly another challenging year for the logistics industry as disruptions and bottlenecks continue to plague the supply chain. Yet at the same time, this year also presented new opportunities to improve, expand, and accelerate.
Amid new operating environments and rising demands, Cainiao CEO Wan Lin’s speech at the company’s Open Week 2022 emphasizes Cainiao’s continued commitment towards the development of a strong and sustainable logistics organization, with a focus on globalization and long-termism.
With a technology- and customer-centric approach, the company will focus on five business areas to ensure quality growth and create value for stakeholders across the value chain.
These include enhancing domestic customers’ delivery experience, improving supply chain services for featured business-to-business (B2B) and business-to-consumer (B2C) sectors, strengthening cross-border end-to-end fulfilment strategies, leveraging smart logistics and local area network (LAN) to boost rural revitalization, as well as amplifying environmental, social, and governance (ESG) initiatives.
Operationalizing community resources to enrich customer experiences
Cainiao prides itself on delivery experiences for domestic customers. As one of China’s largest logistics providers, a key differentiation in offerings would be the quality of doorstep delivery services and its corresponding user satisfaction.
To meet rising customer expectations, a myriad of initiatives has been introduced. This includes the expansion of doorstep goods delivery to encompass both Tmall Supermarket and Tmall International, the extension of last mile logistics services to include doorstep delivery for Cainiao Post stations in communities and university campuses in over 200 Chinese cities, as well as the launch of a pilot in selected cities to allow customers to select their preferred mode of delivery upon check out, without additional fees for doorstep deliveries.
Globalizing trade and democratizing technology solutions to spur growth
For supply chain management in featured B2B and B2C sectors such as furniture assembly, heavy goods and large appliances delivery, cold chain management, FMCG, and beauty products, Cainiao will heighten efforts for value-added services. The goal here is to enhance overall logistics services and standards in these key areas to improve merchant and partner experience.
To ensure seamlessness and quality fulfilment processes for B2C and B2B businesses, Cainiao’s supply chain will integrate logistics offerings for merchants by providing eCommerce delivery services for end consumers, and logistics services to deliver inventory to offline stores and warehouses respectively.
As Cainiao strives to upgrade its international logistics and supply chain management, its international cross-border end-to-end logistics services will be upgraded to ensure quality and timeliness. Together with AliExpress, Cainiao will be introducing logistics commitment with guaranteed services such as USD5 10-day delivery, with compensation for late deliveries. Express offerings such as USD10 five-day delivery will also be expanded, with the goal of achieving three-day delivery in key export markets such as South Korea.
Digitalizing logistics infrastructure to streamline supply chain processes
Cainiao’s new-generation RFID recognition technology achieved new breakthroughs, with an accuracy of 99.97 percent. This RFID label has since been widely adopted by various organizations in their supply chains to improve the accuracy and speed of recognition, successfully replacing barcode identification methods.
The RFID labels are also used within Cainiao facilities in key growth regions in domestic and international cities, such as Thailand, Indonesia, and Vietnam in Southeast Asia, as well as Hong Kong. These facilities, known as eHubs and cHubs, are regional connectors, effectively easing trade and technology use for the merchant and partner ecosystem.
Besides boosting its capabilities in key growth regions, Cainiao is also advancing rural revitalization in mainland China, facilitating the flow of trade, technology, and other resources to rural provinces and towns. By digitalizing warehouses located in rural regions, Cainiao has managed to double the efficiency of deliveries. As part of Cainiao’s ESG strategy, this initiative to automate warehouses and logistics services in rural areas contribute to sustainable growth as well.
Last but not least, Cainiao’s ESG efforts will spotlight green logistics initiatives and emergency logistics, with the goal of cultivating community spirit and wellbeing, fostering sustainable growth, and increasing market competitiveness.
To find out more about Wan Lin’s speech during Cainiao’s open week, you can watch the playback here.