Alibaba logistics arm Cainiao aims to slash delivery time

Cainiao Smart Logistics Network, the logistics arm of Alibaba Group Holding Ltd, announced on Tuesday it will ramp up investment in its network to improve efficiency and significantly slash delivery times over the next three years.

To benefit both consumers and merchants running 100,000 online stores by speeding up deliveries, Cainiao will increase its chartered flights, build out the number, size and coverage of its warehouse facilities and expand its partnerships with customs authorities around the world.

The courier aggregator said it will increase its number of chartered flights to 1,260 from 260 in the next nine months. That means air-freight time should drop to 3-5 days from the current 7-10 days.

"Logistics is no longer an afterthought. Today, logistics has become a game changer and key differentiator that sets one business apart from another," said Wan Lin, president of Cainiao, during a cloud-based smart logistics conference.

"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."

The announcement is the latest initiative from Cainiao to build up its global logistics infrastructure since Alibaba Group increased its stake in Cainiao in 2019, aimed at hitting ambitious goals set several years ago to deliver packages in China within 24 hours and in 72 hours elsewhere in the world.