Cainiao has partnered with Chinese FMCG snack brand Bestore to manage its export needs to ensure compliance to local laws and regulations, as well as cost savings for unique order dispatches.
The new offerings consist of a goods labelling service and a consolidated B2B inventory and supplier management service. Cainiao will provide end-to-end support for the labelling of FMCG goods, from designing, production, to distribution of labels.
“Labeling and packaging FMCG goods pose a unique set of challenges for brands exporting globally, due to the requirements for compliance with local laws and regulations, and the need to meet expectations and preferences of local consumers,” Cainiao explained.
“Companies need to keep abreast of requirements like mandatory packaging information that include ingredients, allergens, nutritional facts, country of origin, expiration date, warnings, instructions, and more, which may further complicate the export process.”
Cainiao said it will also reduce overall consolidation and value-added services costs by 10 percent.
The company noted that its capabilities in streamlining inventory and supplier management for FMCG companies allow suppliers to route the goods to the warehouse for consolidation and labelling. Logistics needs for subsequent supply chain nodes, such as distribution, first mile, customs clearance, and line haul shipping, for exports can be aggregated. This will help FMCG companies to increase shipping efficiency and reduce costs by up to 25 percent by reducing the Less than Container Load (LCL) occurrences.
“Globally, FMCG companies are experiencing a significant hike in costs as they cope with unabated increase in prices of several commodities,” said Ricky Xue, general manager of Southeast Asia at Cainiao Group.
“As a supply chain partner, we notice that companies are looking for ways to streamline, optimize and innovate to drive down costs and maintain price competitiveness across brands and products.
“With that in mind, our offerings are specially tailored for FMCG companies in order to help them better navigate complex local regulations, we well as inventory and supplier management while reaping cost savings at the same time,” said Ricky Xue, general manager of Southeast Asia at Cainiao Group.