SINGAPORE, 16 September 2020 – Cainiao Smart Logistics Network, (“Cainiao Network”), the logistics arm of Alibaba Group Holding Limited, today announced the expansion of its last mile network in Singapore to shorten delivery time for cross-border eCommerce parcels and improve overall customer experience.
Through partnerships with logistics partners including Singapore Post, BEST Inc. Roadbull and Park N Parcel, the last mile network will comprise over 1,600 collection points, 600 couriers and 500 lockers island-wide. Singaporean consumers will benefit from a wider range of last mile service offerings, from home delivery to self-pick up at collection points and lockers.
Cainiao will also be leveraging its technological capabilities to digitalize last mile logistics. Each parcel will be tagged with an electronic shipping label to facilitate the ease of real-time tracking from the point of overseas dispatch to final local delivery. Cainiao’s Global Smart delivery Platform (GSDP) will be used to accurately and intelligently assign delivery tasks to the most suitable logistics partner by evaluating a range of metrics such as cost and service level, as well as the courier’s location and capacity. This will bring about greater efficiency and prevent asset underutilization.
Cainiao’s expansion and digitalization of last mile network aims to support Singapore’s rapidly growing eCommerce industry that is contributing 200,000 parcels daily. This US$2.4 billion[1] industry is projected to grow at 12 to 20 per cent annually over the next five years[2], which signals an immediate need to modernize the corresponding eCommerce logistics network.
“The expansion of last mile network is an organic extension to deliver an end-to-end logistics service that provides greater stability and quality assurance to our customers in Singapore. We believe that last mile delivery has the potential to positively impact customer experience, so we will continue to pursue diversification of service offerings that meet the unique lifestyles and needs of our customers. This is also part of our ongoing effort to support the Southeast Asia market by establishing win-win partnerships with local logistics partners. By driving the digital transformation of the entire industry, we are confident that logistics will continue to play an instrumental role in bolstering eCommerce growth in the region and serve as a key building block for the digital economy,” says James Zhao, General Manager, Global Supply Chain, Cainiao Network.
Together with Cainiao’s increased investment to build a global smart logistics network[3] and the recent launch of four weekly chartered flights between Singapore and China[4], the last mile network expansion in Singapore will create a more seamless cross-border eCommerce logistics flow which promises greater visibility and operational efficiencies. Consumers will ultimately benefit from more price competitive and faster deliveries – as fast as the next day upon customs clearance. This will help Cainiao to achieve its commitment to deliver globally within 72 hours.
[1] https://www.statista.com/outlook/243/124/ecommerce/singapore#market-globalRevenue
[2] https://www.mci.gov.sg/pressroom/news-and-stories/pressroom/2020/3/speech-by-mr-s-iswaran-at-the-mci-committee-of-supply-debate-2020-on-3-mar-2020
[3] https://www.alibabagroup.com/en/news/press_pdf/p200623.pdf
[4] https://www.alizila.com/alibaba-news-roundup-tmall-theme-store-kaola-luxury-upgrade/
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