Alibaba’s logistics subsidiary Cainiao Smart Logistics Network has upgraded its technology and capabilities in preparation for this year’s 11.11 Global Shopping Festival, known as Singles’ Day.
According to the company, recent enhancements have equipped it to handle even more orders than the 812 million it received during last year’s event.
“It was only five years ago that parcel orders surpassed 100 million for the first time. Back then
it took nine days to deliver the first 100 million parcels,” said Ben Wang, vice president of Cainiao. “Last year, it took less than three days to deliver the same number of parcels. Consumers increasingly want faster, better delivery, so that’s what we’re doing. This year, we’re striving to achieve a new high, leveraging the beauty of scale and technology.”
One major upgrade is the recent opening of a new smart warehouse in Wuxi in Jiangsu province. The facility is the largest robotic warehouse in China and features 700 automated guided vehicles that are capable of loading and unloading automatically, being guided around the space by an Internet of Things system. The warehouse can fulfil 50% more orders than a traditional one.
Another enhancement making use of IoT technology is Cainiao’s Sky Eye programme, a cloud-based video-monitoring system which taps into cameras in logistics stations across the country to help delivery firms identify idle resources and abnormalities in the logistics process. Status updates are sent to human operators in real time. Sky Eye will be used by logistics partners Deppon, ZTO Express, YTO Express, STO Express, Best Express and Yunda Express for this year’s Singles’ Day.
To help international brands facilitate faster deliveries, Cainiao and its partners have prepared bonded warehouses covering over 1 million square metres across China, more than 80% more than 2017, in order to store the right goods at the closest location to consumers in advance of November 11, substantially cutting delivery times.
Cainiao has also chartered 51 flights to transport goods to Western Europe, Russia and Southeast Asia, as well as approximately 1,000 containers that will take goods by sea to Southeast Asia and other destinations. This will be the first time that goods ordered during 11.11 are delivered directly from stores to customers during the festival itself.
“Cainiao is the logistics backbone of Alibaba’s New Retail strategy,” said Wang. “We are providing an online and offline, cross-platform supply chain solution to merchants and enabling them to cut inventory costs, while increasing operating efficiency, especially around 11.11 – the busiest season of the year. Ultimately, consumers will enjoy a brand-new shopping experience, as delivery service will always be on-demand.”
Alibaba Group’s logistics vision is to fulfil consumer orders within 24 hours in China and within 72 hours elsewhere in the world.
