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Cainiao reveals ambitious plan to support booming demand in Hainan
In this contributed article, Cainiao Smart Logistics Network (Cainiao), the logistics arm of Alibaba Group Holding Limited, outlines its strategic plan to implement global smart supply chain technologies in Hainan to meet the surging growth in consumer demand.
Alibaba’s logistics arm Cainiao (Cainiao Smart Logistics Network) has launched cross-border logistics services to support the import and export needs of merchants in Hainan’s free trade zone. Currently, there are seven weekly flights connecting Singapore and Hainan’s free trade zone, comprising five weekly chartered flights between Singapore and Haikou, and two weekly flights between Guangzhou, Sanya and Singapore. Both routes aim to provide cross-border logistics services for global beauty and luxury brands to enter Hainan, and also to help export domestic ecommerce goods to Singapore, enhancing trilateral trade between Singapore, Hainan Province and China’s Greater Bay Area (GBA).
State of the art logistics and supply chain management: Cainiao’s smart warehouse in Hainan
Cainiao will be working with various clients ranging from brands, agents, suppliers, to retailers in Hainan and duty free licence holders, etc. This will also be an opportunity for brands that have not made their debut in Hainan or even China to tap into the growing consumer demand. The launch of direct chartered flights has helped to accelerate the movement of products and the sales process, saving time by streamlining the overall import procedure for brands and retailers. Goods will be able to arrive in Hainan from Singapore within three hours, and be ready for sale in duty free shops within 12 hours after clearing customs and dispatched from the warehouse. After the cargo flight lands in Hainan, Cainiao is able to provide full-chain logistics services including customs clearance, warehousing, restocking of goods for duty free shops and parcel collection and delivery to pick-up points at ports, airports and train stations in Hainan.
Before these direct flights were launched, it normally took two to three days to import goods to Hainan as they had to first land in Shenzhen or Guangzhou, before being transported to Hainan via truck and ferry. Cainiao helps save shoppers time as well. As a tech-enabled digitalized logistics company, Cainiao has developed a system that optimizes the operation path and processing actions for pickup points by leveraging its advanced algorithms. The system is able to cut waiting time by -50% to within 70 seconds. Cainiao will launch its first smart warehouse for duty free goods in a bonded area in Hainan in early May, in which delivery robots (AGVs) will be sorting and moving goods within the warehouse to achieve maximum efficiency and accuracy.
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The Moodie Davitt eZine Issue 295 | 18 May 2021
The Moodie Davitt eZine is published 15 times per year by The Moodie Davitt Report (Moodie International Ltd). © All material is copyright and cannot be reproduced without the permission of the Publisher. To find out more visit www.moodiedavittreport.com and to subscribe, please e-mail sinead@moodiedavittreport.com