Cainiao Smart Logistics Network, the logistics arm of Alibaba Group, has announced its plan to implement global smart supply chain technologies in Hainan to meet the growth in consumer demand.
In a statement, it noted that the initiative will allow Cainiao to provide a strong logistics infrastructure to support the needs of Hainan’s Free Trade Zone. It would also serve consumers and merchants across the globe with its digitalized full-chain logistics solutions.
"As one of Cainiao’s core logistics hubs, Hainan will connect to its eHubs in Hong Kong, Kuala Lumpur, and Liege, and playing a pivotal role in driving global trade and e-commerce across Asia and Europe," Cainiao said in a statement.
800 international cargo flights by end 2021
Cainiao noted that the plan also includes the expansion of international cargo routes connecting Hainan and key countries such as Japan, South Korea, Australia, New Zealand, and Europe, with the goal to launch over 800 international cargo flights in Hainan by the end of 2021.
There will also be development of Hainan’s largest smart warehouse designated for cross-border and bulk goods as well as future inbound duty-free goods.
Cainiao said this digitalized warehouse will be equipped with over 100 AGV robots, and automated logistics arms and forklifts, and will bring about an 80% uplift in operational efficiency by reducing staff’s walking time and manual sorting of goods in the warehouse.
The warehouse system is also integrated with the digitalized customs clearance system for a more seamless and efficient logistics flow.
The project will also increase warehousing space in Hainan’s bonded zone to 150,000 square meters in the next three years.
Cainiao noted that its first digitalized logistics system will expedite logistics processes by 50%. Through Cainiao’s full-chain tracking and real-time review function, the entire process can be completed within 70 seconds compared to the previous processing time of 3 minutes, with an accuracy rate of 100%.
"This strategic plan to create a comprehensive full-chain logistics service tailored for the unique needs of Hainan demonstrates our commitment to actively participate in the development of the Hainan Free Trade Zone," said James Zhao, Cainiao’s General Manager of Global Supply Chain.
He noted that leveraging Cainiao's global smart supply chain capabilities, the logistics firm aims to provide a stable and highly efficient logistics network across the Greater Bay Area (GBA), Hainan, and Southeast Asia.
"Smart logistics and supply chain will continue to play an instrumental and fundamental role in facilitating global trade and e-commerce, and the work we are doing in Hainan will evidently help us to pioneer more comprehensive services and solutions to benefit tens of millions of consumers and merchants globally," he added.
In April, Cainiao announced its plans to launch seven weekly chartered flights designated for shipping international goods from Singapore to duty-free shops in Hainan’s Free Trade Zone via its traveling hotspots in Sanya and Haikou.
Both routes will provide cross-border logistics services for global beauty and luxury brands to enter Hainan, and also help to export domestic goods such as fish fries, tropical fruits, and e-commerce goods to Singapore, enhancing trilateral trade between Singapore, Hainan, and the Greater Bay Area (GBA).