Cainiao gives last-mile boost in Malaysia, expands into Japan

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Cainiao warehouse

Cainiao Network has partnered with Shanghai-based Yunda Express to strengthen last mile delivery efficiency in Malaysia via a comprehensive network of collection stations. It also aims to drive digitalisation through AI-powered smart sorting and IoT-enabled parcel management systems.

Alibaba’s logistics arm said there will be over 100 collection stations strategically located near communities and business districts across the country, with plans to expand to 500 stations to include West Malaysia by 2022. This will boost the total daily parcel handling capacity to about 100,000.

This will cater to customers’ diversified needs for pick-ups and drop-offs, and facilitate self-pickups within 24 hours for local e-commerce parcels.

Merchants ca tap on Yunda’s direct cross-border parcel network to access a wider overseas market in Singapore, China, Korea, Taiwan and Thailand. The end-to-end logistics service spans customs clearance, warehousing, and line haul shipping via sea or air.

“Yunda will be investing over RM 30 million to expand our coverage in Malaysia. Today, our local last mile logistics network comprises a 3000-strong team, 600 delivery vehicles, and 100 collection points which will be increased five-fold to 500 in the next two years. Most importantly, the use of cutting-edge technologies such as Artificial Intelligence (AI) and Internet of Things (IoT) allow us to leverage smart sorting and last mile parcel management respectively increase overall productivity, accuracy and reduce
operations cost,” says Dato Luke Low Choon Peng.

Cainiao recently launched its expansion into Japan, which is expected to reduce total shipping duration from 18 to 22 days to 11 to 13 days. The move aims to provide logistics and supply chain services to local businesses, spanning first and last mile, warehouse management, international shipping, trucking and customs clearance.

For air shipments, Cainiao’s B2C warehouses in Tokyo and Osaka are located within 10 kilometers from Narita International Airport and Haneda Airport, respectively.

The logistics operator is partnering with Nippon Express, 4PX, Sinotrans, and Hongyuan Group for first and last mile trucking services and to facilitate and expedite customs clearance in Japan and China.