New Cainiao logistics facilities boost Lazada distribution capabilities in Southeast Asia

SOUTHEAST ASIA. Cainiao Network, the logistics arm of Alibaba, announced this month that it has enhanced the Alibaba-owned Southeast Asia online shopping platform Lazada’s cross-border logistics efficiency by +50%. It has launched a raft of logistics facilities to support local exporting SMEs.

Lazada’s LazMall is the region’s largest virtual mall, housing over 32,000 international and local brands.

Growing distribution network: The Cainiao warehouse in the Chinese city of Yiwu

Using the accelerated logistics channel, customers in Thailand, Singapore, Malaysia and the Philippines are now able to receive parcels in as quickly as three days after placing an order on Lazada’s platform.

“We believe that efficient and comprehensive logistics network is key to facilitating global trade and supporting small businesses and online merchants to tap on a booming Southeast Asian market” – Cainiao Executive General Manager and LazGlobal Chief Logistics Officer Shawn Louis

The speed of delivery is being achieved through the launch of distribution centres in China’s export-focused cities of Yiwu, Shenzhen and Quanzhou. Each offers doorstep pick-up, distribution and cross-border shipping services to support merchants’ needs.

The shipment status will be synced in real-time through Cainiao’s parcel tracking system. Prior to this, merchants had to deliver the goods to warehouses on their own, which involved time-consuming activities such as queuing and scanning products.

The new process will help merchants to save up to ten hours for the first mile delivery, and avoid up to three days of delay during peak shopping seasons such as Double 11, Cainiao said.

Cainiao also introduced community-based parcel consolidation stations earlier this year to support 11,500 SMEs in 20 cities. The initiative allows local SMEs to deliver goods to the nearby stations where the consolidated parcels can then be transported by Cainiao to one of its distribution centres.

Cainiao community-based parcel consolidation stations are spread across 20 Southeast Asia cities 

Cainiao Executive General Manager and LazGlobal Chief Logistics Officer Shawn Louis said: “Today, consumers have greater expectations when it comes to logistics efficiency, especially for trendy products popularised by social media and influencers.

“This year, we have commenced trial operations for cross-border express delivery services in Southeast Asia, with a focus on Singapore, Thailand, the Philippines and Malaysia, to enable consumers to receive their parcels in as fast as three days.”

He added: “We believe that efficient and comprehensive logistics network is key to facilitating global trade and supporting small businesses and online merchants to tap on a booming Southeast Asian market.”

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