Alibaba’s logistics arm Cainiao to speed up delivery times to meet boom in online shopping

Cainiao Network Technology, the logistics unit of Chinese internet giant Alibaba Group Holding, announced a three-year initiative to ramp up efficiency so it can deliver packages within 24 hours in China and 72 hours globally.

The affiliate of the country’s largest e-commerce player said the company will invest at least 1 billion yuan (US$141 million) in its logistic network to increase chartered flights, build out warehouse facilities and expand partnerships with customs authorities around the world.

“Logistics is no longer an afterthought. Today, logistics has become a game changer and key differentiator that sets one business apart from another,” Cainiao president Lin Wan said in a statement. “Our investment to establish a global smart logistics network, including international shipping routes and warehousing facilities, will provide businesses with greater operational efficiency, cost savings, transparency and accuracy in their supply chain management.”

To benefit its merchants running 100,000 online stores, Cainiao plans to quadruple its chartered flights to 1,260 from 260 over the next nine months while airfreight delivery time will drop to three to five days from the current seven to 10.

In addition, Cainiao will double the floor space of its overseas warehouses over the next three years to 2 million square metres so that Chinese merchants can store their goods closer to customers, which will further speed up delivery times.

The company also said it will double down on its 72-hour delivery commitment for merchants using its warehouse network by optimising the logistics supply chain in over 500 counties and in 21 Chinese provinces.