Alibaba seeks to expand logistics business

(ATF) Alibaba’s delivery arm plans to quadruple flights and halve delivery times among plans to increase the tech giant’s logistics portfolio.

Cainiao Network said it would ramp up investment to double cross-border air-freight efficiency. It’s hoping to tap into a surge in online shopping that was set in train by the coronavirus lockdown, which shuttered millions of people in their homes for two months earlier this year

The announcement is Cainiao’s latest initiative to build its global logistics infrastructure since Alibaba Group increased its stake in the company last year.

It plans to deliver packages throughout China within 24 hours and within 72 hours elsewhere in the world.

It will do that by increasing its chartered export flights from 1,260 from 260 over the next nine months, halving air-freight times to 3-5 days from the current 7-10 days.

The logistics firm will also expand its overseas warehouse network to more than 2 million square metres in the next three years from a million square metres across 30 facilities. Small and medium-sized enterprises will be able to pre-stock their goods in these overseas warehouses, allowing 90% of cross-border orders to be fulfilled within 72 hours in 100 cities.

“Today, logistics has become a game changer and key differentiator that sets one business apart from another,” said Cainiao President Wan Lin. “Our investment to establish a global smart logistics network, including international shipping routes and warehousing facilities, will provide businesses with greater operational efficiency, cost savings, transparency and accuracy in their supply chain management.”