Cainiao Group (Cainiao) has announced a tailored offering to strengthen supply chain capabilities in the fast-moving consumer goods (FMCG) sector.

Chinese FMCG brand Bestore would be the first partner to adopt Cainiao’s offering in their global supply chain operations.

 [Source: Cainiao]

Cainiao said it would provide Bestore and upcoming partners with end-to-end support for the labelling of FMCG goods, from designing and production to distribution of labels.

Additionally, with the service operating in mainland China, Cainiao will reduce overall consolidation and value-added services costs by 10%, enabling its partners to pass the cost savings on to their customers.

It added that the service would increase their partner's shipping efficiency and reduce costs by up to 25%.

Cainiao explained that labelling and packaging FMCG goods pose a unique set of challenges for brands exporting globally due to the requirements for compliance with local laws and regulations and the need to meet the expectations and preferences of local consumers.

Due to this, companies need to keep abreast of requirements like mandatory packaging information that includes ingredients, allergens, nutritional facts, country of origin, expiration date, warnings, instructions, and more, which may further complicate the export process.

"To help brands navigate the complexities of local laws and regulations, Cainiao will provide its partners with end-to-end support for the labelling of FMCG goods, from designing and production to distribution of labels," it said in the announcement.

This is complemented by Cainiao’s capabilities in streamlining inventory and supplier management for FMCG companies, where suppliers can route the goods to Cainiao's warehouse for consolidation and labelling.

"Logistics needs for subsequent supply chain nodes such as distribution, first mile, customs clearance, and line haul shipping for exports to destination countries are aggregated, helping FMCG companies to increase shipping efficiency and reduce cost by up to 25% by reducing the Less than Container Load (LCL) occurrences," Cainiao said.

It added that they will play a key role in supporting Bestore's globalization strategy as they strive to expand the reach of Chinese food products to global audiences.

"Globally, FMCG companies are experiencing a significant hike in costs as they cope with unabated increases in prices of several commodities. As a supply chain partner, we notice that companies are looking for ways to streamline, optimize and innovate to drive down costs and maintain price competitiveness across brands and products," said Ricky Xue, general manager of Southeast Asia, Cainiao Group.

"With that in mind, our offerings are specially tailored for FMCG companies in order to help them better navigate complex local regulations, we well as inventory and supplier management while reaping cost savings at the same time," he added.