Cainiao launches $76m open tender for logistics services

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Cainiao Smart Logistics Network, the logistics arm of China’s largest e-commerce platform, Alibaba Group, launches its 2021 open tender for logistics services. Aimed at strengthening its global logistics network, the global open tender – valued at RMB 500 million (USD 76.4 million) – encompasses all key markets including North Asia, Southeast Asia, Europe, Middle East, ANZ, and the US.

The open tender is segmented into B2C and B2B logistics services, and will also be used to expand its network of Cainiao-certified third-party logistics (3PL), partners. The deadline for submission is 15 December 2020.

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Cainiao’s strong focus on technology means that for consumers and manufacturers in China, a typical, 1kg package can be sent anywhere in the country within 24 hours for around US 30 cents. Its goal is to deliver this same 1kg package anywhere in the world within 72 hours for USD 3.0.

Far from a typical logistics company, Cainiao describes itself as an open digital logistics platform that allows for collaboration currently with 3,000 logistics partners and three million couriers – including the top 15 delivery firms inside China and 100 operating internationally. “Cainiao adopts a collaborative approach by integrating existing industry logistics resources and empowers connected partners with an innovative and open data platform which improves efficiency along the entire value chain,” the company says.

In the B2C area, Cainiao says it will be curating a list of Cainiao-certified 3PL partners to provide full suite end-to-end logistics services for merchants, spanning overseas parcel collection, international line-haul, import customs clearance, and last-mile delivery.

It is also looking to select partners for its global fulfillment warehouse network to support overseas warehouse management (storage and inventory management), quality inspection, picking, and packing; global consolidation warehouse network for consolidation of B2C parcels.

“The goal is to reinforce resources across the entire value chain to deliver greater stability and efficiency to support cross-border eCommerce businesses for both Alibaba (Taobao, Tmall, and Kaola) and non-Alibaba merchants,” Cainiao says.

In the B2B area, Cainiao will be strengthening its warehouse and trucking network to support businesses’ import and export needs.

These overseas warehouses will have to be located near ports to facilitate efficient transportation and are able to provide services for pre-stocking, storage, and serve as a container freight station (CFS), the company says. Partners supporting the trucking network will also have to be well-equipped with resources such as lorries and container trucks to handle the transportation of goods between warehouses and ports.

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