August 9, 2022

Boosting ecommerce shopping festivals with technology and green logistics innovations

William Xiong, Main Strategist and Basic Supervisor for Export Logistics, Cainiao: ‘Technology plays an instrumental purpose in fostering a greener ecosystem and the sustainable co-existence of logistics and ecommerce.’

The COVID-19 pandemic has revealed vulnerabilities in the logistics and provide chain ecosystem, while at the exact same time, lose light-weight on its essential and infrastructural importance to financial advancement and trade flows. In 2020, the logistics sector grew by 27%, mainly led by the ecommerce growth during the pandemic. The very last two a long time have witnessed accelerated technological innovation and sustainability techniques to align with shopper expectations, and this development is below to keep. 

The world-wide source chain disruptions and delivery delays have demanded a more effective and clear source chain, a single that optimises technological innovation-enabled and sustainable techniques to obtain a additional inclusive and collaborative cross-border logistics network. At the similar time, client demand from customers for sustainable ecommerce has grown better as environmentally friendly consumerism gains traction about the planet. World wide ecommerce sale activities this sort of as the 11.11 World Purchasing Pageant of 2021 served as a litmus examination – by utilizing technologies to show the viability of a tenable co-existence and progress of ecommerce logistics and sustainability. By way of the adoption of new technologies, improvements in our offer chain functions, and bigger standardisation in previous-mile logistics, we are operating to reinforcing the total benefit chain to become much more resilient and agile. 

Setting up a strong good logistics community globally 

The ecommerce logistics sector is seeing a surge in shopper desire, with an estimated 8.6% compound once-a-year growth amount between 2020 and 2025. Good logistics will enjoy an ever more pivotal job in allowing companies to produce charge-helpful e-fulfilment while continuing to increase their attain to a world consumer base. In this regard, Cainiao has recognized wise hubs near critical transportation nodes these kinds of as global airports, ports, and rail networks, to develop a seamless regional logistics network. These clever hubs serve as gateways into the respective locations to enhance air freight stability. Products could be moved instantly to the hub to shorten all round processing and cross-border shipping and delivery time. 

To streamline cross-border logistics services and speed up distribution flows for the area, we not long ago released a regional intelligent hub in Kuala Lumpur Intercontinental Airport in Malaysia, the Cainiao Aeropolis eWTP Hub, to reinforce the region’s logistics ecosystem. This interprets to additional effective clearance techniques and an increase in air cargo quantity, smoothening the over-all supply processes of ecommerce purchases inside of Asia–Pacific. Ecommerce merchandise selected for Southeast Asia can be first transported to the KL eHub just before they are despatched to the respective nations in the region. This course of action streamlines air freight and will increase the steadiness of cross-border logistics companies. 

In planning for the 11.11 purchasing festival of 2021, we secured further cargo place in in excess of 1,350 flights with a total capability of 4,500 tons, 210 sea freight trips with 1,170 containers, and 150 vans totalling 700 tons, to assistance cross-border deliveries for buyers in Southeast and North Asia for the overall month of November. 

We also executed wise purchase consolidation in our warehouses, a proprietary data intelligence technologies that identifies many ecommerce buys made by the very same client and teams them into a one package for cross-border transport. 

This properly leverages economies of scale to allow expedited transport providers without having additional expenses for customers and retailers. Only set, the much more products the buyer buys, the more rapidly their deliveries. Right now, above 3.8 million parcels are processed each day using Cainiao’s smart purchase consolidation, involving more than a billion final decision-producing processes which culminated in the formulation of just about 200 final decision-producing frameworks centered on numerous cross-border logistics scenarios. 

Furthermore, to minimise disruptions, all parcels are affixed with electronic shipping labels, which supply comprehensive-chain, real-time visibility to detect anomalies and let swift responses from the ground. 

Inexperienced logistics 

Past operational efficiency enhancements and price tag personal savings, technological innovation performs an instrumental purpose in fostering a greener ecosystem and the sustainable co-existence of logistics and ecommerce. We continually embrace technologies to pave the way forward for sustainable logistics and supply chain management that supports ecommerce advancement. Cainiao adopts a highly nuanced technique to driving green logistics initiatives and implementing technology innovation at a variety of factors of the value chain. Digital transport labels were affixed on 1.6 billion parcels throughout the shopping pageant of 2021, which minimized the use of paper and saved an equal of 3,700 sq. meters of forest spot. 

At the very same time, clever packaging algorithms make it possible for us to form merchandise into appropriate-sized containers and minimise waste from overpacking. We have also embraced eco-welcoming packaging – just about 100% of the packages transported from our warehouses had been biodegradable. For the duration of the searching pageant, the clever packing algorithm was equipped to decrease up to 15% of packaging elements for 250 million parcels in China. More than 90 million eco-friendly offers have been shipped out from Cainiao warehouses as very well, which include parcels in first boxes, plastic-totally free ‘zipper boxes’, biodegradable and recycled packaging, which saved the use of 84 million meters of plastic tape. 

With the exact and personalized implementation of inexperienced know-how, we reduced potential carbon emissions by 53,000 tons all through the 2021 searching pageant and amassed a total of 1.8 billion eco-pleasant steps from merchants, shoppers, and the provide chain pipeline. All in all, we have been in a position to harness the attempts of our retailers and people to successfully produce a ripple effect for our inexperienced initiatives. 

The 2021 version of the competition marks a new chapter for 11.11. The achievement of the eco-friendly initiatives implies potent willingness from individuals, retailers, and associates throughout our ecosystem to change to sustainable ecommerce with the aid of technological innovation – which is certainly practical for the sustainable co-existence and development of ecommerce logistics. 

This editorial was initial printed in our Cross-Border Payments and Ecommerce Report 2021–2022, which faucets into the rapid-growing cross-border industry and provides a complete overview of developments and developments that are pivotal in this place, becoming the ultimate supply of info for ecommerce businesses intrigued in expanding globally. 

About William Xiong 

William Xiong is Cainiao’s Chief Strategist and Typical Manager for Export Logistics, responsible for strategic organizing, worldwide enlargement, and supply chain innovation. He is committed to developing the worldwide smart logistics community, aiding world-wide merchants to improved provide abroad consumers. He has over 18 many years of practical experience in strategy progress and transformation in worldwide logistics and provide chain, masking small business portfolio scheduling, globalisation, digital supply chain, innovation, and company progress. 

About Cainiao 

Founded in 2013, Cainiao Community (Cainiao) is a world wide wise logistics organization and the logistics arm of Alibaba Group. As part of its dedication to produce customer worth, it adopts a collaborative tactic to logistics that aims to boost performance and consumer encounter for all players together the provide chain. It carries forward Alibaba’s mission of generating it quick to do small business everywhere by aiming to deliver any place in China inside 24 hrs, and throughout the world within 72 hours.