FRIDAY, March 29, 2024
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Alibaba unit aims for logistics efficiency

Alibaba unit aims for logistics efficiency

CAINIAO - Alibaba Group Holding’s logistics offshoot, has pledged to lower significantly China’s logistics costs by offering data-enabled smart solutions to handle the rapidly rising number of parcels driven by the country’s booming online-shopping demand

Zhejiang Cainiao Supply Chain Management Co said on Monday that its long-term vision was to lower the proportion of logistics expenditures in the country’s gross domestic product from the current 16 per cent to 5 per cent.
Tong Wenhong, Cainiao’s chief executive officer, said the vision to lower China’s logistic cost was in line with her company’s business plan for the next 10 years.
“Logistics cost accounts for 6 per cent of GDP in the United States, which delivered 12.7 billion parcels last year. China delivered 20.6 billion parcels last year. A bigger scale can further reduce cost. That is why we believe it is possible to lower China’s logistics costs to 5 per cent of the country’s GDP,” she said on the sidelines of the “Global Smart Logistics Summit” held in Hangzhou, Zhejiang province.
“Once we have a unified standard in terms of geographic location, data and services, the logistics industry can develop in a smart way and all the industrial participants can share the infrastructure and resources with each other to improve efficiency and cut cost,” she said.
Jack Ma, executive chairman of Alibaba, said China’s logistics industry was expected to be delivering 300 million parcels a day 10 years from now.
Gao Hongfeng, head of the China Express Association, said: “With the rising cost in labour, it is impossible for the industry to expand further in the traditional way. It is high time to use smart solutions.”

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