Cainiao delivers same-day boost across 11 Asian countries

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Alibaba Group’s logistics arm, Cainiao Smart Logistics Network, unveils new logistics technology enabling same-day delivery from China to 11 Asian countries.

Cainiao has now fully implemented its ‘Apollo’ proprietary logistics technology across 11 Asian countries, enhancing the parcel processing capacity nearly 10-fold during peak periods when hundreds of millions of parcels are processed. Customers in these countries will be able to receive parcels from China as soon as the same day when an order is placed.

The system has now been adopted by e-commerce and logistics partners across 11 Asian countries including: Indonesia, Malaysia, Singapore, Vietnam, Thailand, Philippines, Pakistan, Nepal, Myanmar, Bangladesh and Sri Lanka, with the estimated coverage of one billion users.

The full implementation leads to 50 per cent increase in delivery accuracy as well as 10 per cent reduction in the average cost through its smart order splitting, route optimisation and pricing technologies.

Developed and implemented by Cainiao, the Apollo system was launched to establish a highly-efficient logistics network and operations standardisation across different businesses of the Alibaba Group and its partners.

The core algorithm can be constantly re-iterated and optimised based on changing business needs and environment, the logistics company says.

Cainiao notes the development process spanned six months, and involved a team comprising 600 developers and engineers. The Apollo team’s digitalisation initiative leveraged big data and intelligent algorithms to optimise various objectives based on parcel location, destination, cost considerations and partner logistics efficiency.

As one of the fastest growing e-commerce markets in the world, Southeast Asia is projected to achieve a 23 per cent compound annual growth to reach USD 53 billion in 2023 according to Forrester Analytics.

But, inadequate local logistics infrastructure often results in a long delivery time and high cost. A survey by iPrice Group shows some 34 per cent of consumers in Southeast Asia are unsatisfied with their current delivery services. Cainiao notes that because customer satisfaction is a key factor for customer retention, optimising the delivery experience is crucial to improving customer lifetime value.

Weicai Chen, project manager of Apollo says: ”Southeast Asia is a dynamic market which is home to a large number of e-commerce and logistics firms, but its overall logistics user experience needs improvements in order to remain competitive and efficient.

“We are committed to digitalising the whole industry by upgrading its logistics technology and infrastructure with our local partners. With Apollo, we will be able to drive the integration of logistics capabilities with e-commerce strategy to cope with the e-commerce boom in the region.”

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