Cainiao Smart Logistics Network, the logistics arm of the Alibaba Group, has announced its launch into the Japan market citing how the country has always been a key market for their operations.
In a statement, the Alibaba Group logistics unit said the move aims to provide diversified end-to-end logistics and supply chain services to local businesses, spanning first and last mile, warehouse management, international shipping, trucking and customs clearance.
The service will bring about a 40% improvement in shipping efficiency, reducing total shipping duration from 18 to 22 days to 11 to 13 days, it added.
"As a smart logistics platform, Cainiao will be digitalizing the entire value chain to deliver greater visibility and transparency, while aggregating industry leaders to provide a comprehensive service for businesses’ import and export needs," Cainiao said.
It added that businesses will also benefit from secured cargo shipping space and warehouse pre-stocking ahead of massive sale events, as well as an additional peace of mind with insurance compensation of up to 1.5 million yen (US$14,346) which will be paid out in two working days in the event of damages.
Role in export-import between China, Japan
Cainiao said the establishment of a full suite logistics service between Japan and China will play an instrumental role in supporting the country’s export and import industry.
Data from World Bank showed that China is Japan’s largest export and import country at US$144 billion (19.51%) and US$173 billion (23.20%) respectively
“Japan has always been a key market for us. Our launch in Japan will allow us to provide a stronger logistics infrastructure to support Japanese businesses’ in their export and import needs and to leverage technology to bring about greater efficiency and a more seamless operation,” said James Zhao, general manager of Cainiao Global Supply Chain.
“This will ensure that regardless of business size, resources and overseas presence, Cainiao will be able to provide customized end-to-end logistics and supply chain solutions to facilitate international trade and increase revenue streams for businesses,” he added.
Japan facilities
Cainiao noted that in terms of B2B warehousing, the central warehouse in Yokohama spans 10,000 square meters while the one in Kobe is over 19,000 square meters. Both B2B warehouses are strategically located within 15 kilometres from the nearest port.
The Yokohama warehouse is also a smart warehouse located near the port that leverages the warehouse management system (WMS) and supports quality control management, processing and packaging prior to exportation or distribution within Japan.
Cainiao’s B2C warehouses in Tokyo and Osaka span 20,000 and 13,000 square meters respectively. Both warehouses are located within 10 kilometres from Narita International Airport and Haneda Airport respectively.
"The warehouse locations were strategically selected to ensure close proximity to nearby airports and port for superior connectivity to improve delivery efficiency and facilitate the movement of goods for import and export," it said.
For international shipping, Cainiao’s services include both air and sea freight. Currently, there are 10 weekly cargo ships running Yokohama and Kobe in Japan to Ningbo and Shanghai in China. Cargo flights also operate daily between Japan and China to ensure air freight stability.
Cainiao is partnering Nippon Express, 4PX, Sinotrans, and Hongyuan Group for their trucking resources for first and last-mile delivery and to facilitate and expedite customs clearance in Japan and China.