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Why is cross-border logistics getting faster and faster?

Why is cross-border logistics getting faster and faster?

by YCPress

Rookie launched the world’s largest charter flight plan, locking in more than 700 charter flights, ensuring that Tmall Double Eleven 90% of the export package air direct

According to the monitoring data of the State Post Office, on December 21, the annual business volume of express delivery in China exceeded 80 billion pieces for the first time, setting a new record for the annual business volume of express delivery again.

An endless, efficient and convenient express delivery network has been inseparable from the daily life of consumers, and is known as the “second high-speed rail network”.

Behind the strong growth rate of express business volume is the strong consumption of residents’ online shopping. In the first 11 months of 2020, the national online retail sales volume has exceeded 10.5 trillion yuan, accounting for nearly 30% of the total retail sales of consumer goods in the same period.

Online shopping consumption is not limited to domestic. In recent years, cross-border e-commerce has gradually entered public life. Especially since the epidemic, people’s demand for interconnection and communication with overseas markets has increased instead of decline.

Cross-border logistics has made people experience the efficiency and intelligence of shopping, and has also witnessed the strong consumption potential of China and even the world after the epidemic.

“Logistics is the second vein of the economic body, and cross-border logistics is directly related to the recovery of the global economy and the stability of the supply chain.

The Chinese government and enterprises are working hard to unblock cross-border logistics.” Jia Jinjing, assistant dean of the Chungyang Institute of Finance of Renmin University of China, told Lookout Oriental Weekly that the logistics industry holds the production end and connects the consumer end with the other, closely connects the upstream and downstream, playing an important role of two-way catalysis, and promoting the accelerated operation of the supply chain industry chain.

Install eyes and brains for Southeast Asian logistics

On the eve of Double Eleven this year, the smart logistics platform Cainiao announced at the end of October that it would help 11 countries in Southeast Asia prepare for the Double Eleven with the brand-new logistics middle platform to support the Double Eleven promotion of 12 countries around the world.

This large-scale and new technology system transformation, named “Apollo Project”, is led by Alibaba Rookie, and combines multiple e-commerce platforms in Indonesia, Malaysia, Singapore, Vietnam, Thailand, the Philippines, Pakistan, Nepal, Myanmar, Bangladesh, Sri Lanka and other countries, nearly 100 express companies and Small and medium-sized sellers work together, and the new system can cover a population of 1 billion.

A series of figures created by the logistics platform represented by rookies also lay the footnote on the recently signed Regional Comprehensive Economic Partnership Agreement (RECP) from one side — ASEAN countries have not only become the hot land for the investment layout of Chinese enterprises, but also have potential for emerging industries, especially cross-border electricity.

Commercial and cross-border logistics bring great promotion effects.

Behind the gorgeous transformation of Southeast Asia’s logistics system for six months, it is actually the result of long-term deep cultivation and patient operation of rookies. Chen Weicai, technical director of rookie global logistics, led a team to visit Indonesia in December 2019. In Chen Weicai’s view, the state of Southeast Asian e-commerce logistics in the pre-digital era is a bit like China 15 years ago.

For example, the upstream and downstream status of e-commerce and logistics is inconsistent. The downstream of express delivery has signed parcels, but the backstage of e-commerce is still displayed in transit. The rookie Apollo program is to build a unified logistics technology middle platform, and install eyes and brains for Southeast Asian logistics.

As a result, for the first time, merchants, express logistics companies, warehouses, transit centers and consumers in various countries in Southeast Asia were connected by the unified logistics middle platform. In the past, Southeast Asia Express relied on manual ordering, but now it is intelligent automatic ordering. In the past, couriers used to find a way in complex and crowded streets by means of memory and navigation, but now they use the intelligent path planning of rookies.

In the past, the weight and volume of merchants’ shipments were estimated, and now there are algorithms to accurately measure them. In the past, logistics determination The price is manually operated. Now it is intelligent pricing and one-click adjustment. Relying on the rookie core system, for the first time, Southeast Asian e-commerce platforms can comprehensively consider factors such as income, cost, timeliness, investment rate and total turnover, and adopt differentiated operational strategies in different cities to help turn losses into profits.

In the operation of the new logistics technology in China and Taiwan for more than half a year, the probability of e-commerce and logistics information mismatch in Indonesia, Thailand, Malaysia, the Philippines, Vietnam and Singapore, the six core countries in Southeast Asia, has been reduced by 98%, and the average cost of package delivery has been reduced by 20%.

Chen Weicai said, “We hope that through the upgrading of logistics technology, logistics can become the core competitiveness of the e-commerce platform.”

An industry expert who has long been concerned about logistics in Southeast Asia told Lookout Oriental Weekly, “The new market in Southeast Asia has attracted a large number of e-commerce and express delivery players, and many companies compete for the market by competing for prices.

But what this new market needs is an e-commerce enterprise that is really willing to invest in helping Southeast Asian logistics upgrade its underlying technical architecture.

At the height of the epidemic this year, rookies have also made contributions to the global fight against the epidemic.

In the process of fighting the epidemic, under the condition that international flights are basically suspended, Cainiao Network relies on the global intelligent logistics backbone network to quickly open up a stable green channel for the global anti-epidemic struggle.

In January, rookie opened a green channel to help global medical assistance reach Wuhan. Cainiao delivered 69 million tons of medical assistance from 39 countries and regions to Wuhan.

When the epidemic in China was brought under control, the focus of rookie’s work changed to the delivery of materials, increasing the number of chartered flights from 260 to an alarming 1,260, making up for the capacity gap caused by the suspension of airlines in time.

Rookie has transported 250 million pieces of medical protection equipment to more than 150 countries and regions around the world. The epidemic has tested the rookie’s ability and promoted a lot of progress and improvement.

In addition to transporting medical supplies through its own efficient and scientific logistics system, rookies have also played an active role in stabilizing the global supply chain as the epidemic gradually eases.

In order to stabilize foreign trade, rookie has intensively opened new intercontinental routes in the past two quarters, increasing the number of charter flights used every month from 40 to nearly 150.

The relevant person in charge of China International Cargo Airlines told Lookout Oriental Weekly that this is the first time that China Airlines has opened charter flights with cross-border e-commerce logistics enterprises.

The advantages of rookie in the field of cross-border e-commerce logistics form a good complement to the passenger and cargo aircraft network of domestic cargo flights to the world.

In terms of promoting ports, Cainiao focuses on expanding the central warehouse network, increasing nearly 20 times a year, and 46 warehouses cover major ports in China.

By this quarter, the rookie import center warehouse began to connect to more e-commerce platforms to support overseas merchants to send “one plate” to China, and then distribute it through rookie on multiple platforms.

According to the data, the average daily cross-border package processing volume of Cainiao International has been comparable to that of the three express giants in Europe and the United States, forming a new pattern of cross-border logistics of “the new four new global”.

The epidemic has brought major challenges to the entire world economy. As the world’s second largest economy, China’s export market share in the international market has also steadily increased, which is an important link in the supply chain of the international industrial chain.

Now China has taken the lead in showing the recovery momentum, which is great benefit to ensure the good operation of the international industrial chain supply chain. The smooth flow of cross-border logistics will ensure the stability of the supply chain and be beneficial to better connectivity between the domestic and international markets.

Next growth point

At present, as the first large country to achieve positive economic growth under the epidemic, a large number of small and medium-sized export enterprises can’t wait to sell their products to overseas markets.

The smooth flow of international logistics is the basic condition. Enterprises with international logistics and transportation capabilities such as Cainiao Network are playing a key role.

And small and medium-sized enterprises are very sensitive to logistics prices. After the epidemic, the rise in international logistics prices has also brought great pressure to relevant enterprises — air transportation prices once rose about fivefold.

In order to help stabilize foreign trade, the Ministry of Cainiao Export Logistics has comprehensively reduced export logistics costs in late June.

The price of routes in some key European countries has been reduced by nearly 30%, and it is expected that the cross-border transportation costs of 150 million yuan will be saved for small and medium-sized enterprises in the next month.

Relying on this logistics system, many small and medium-sized enterprises have achieved counter-trend growth.

For example, BioloMix, a kitchen appliance brand in Dongji, is entering a period of rapid growth after the epidemic.

At a time when many exporters are hit, BioloMix still achieved a year-on-year growth of more than 160% in the first quarter of this year.

Previously, its cooperation warehouse in Europe was inefficient, and it took 48 hours from order order to delivery, and the whole delivery process was 3-5 days long. Logistics became the bottleneck of the enterprise’s export. In April this year, BioloMix began to settle in rookie warehouses in Poland and Spain, realizing full hosting of European logistics.

After European consumers place orders, the two overseas warehouses arrange delivery to the buyer, and the logistics timelinesss are increased by at least 40%.

Faster logistics has attracted more consumers to place orders. In the past three months, the conversion rate of stores has increased 17 times, and the monthly sales volume on AliExpress platform has increased by 30%.

International trade under the epidemic is like a microcosm of the future situation: some traditional B2B overseas traders’ access is blocked, the penetration rate of overseas e-commerce market has increased, and B2C export traders have shown strong resilience.

It can be foreseen that these enterprises will play a more important role in international trade, but they also urgently need to build a reliable, efficient and inclusive international logistics infrastructure.

The compression of logistics costs and the improvement of timeliness have once again reflected the advantages of Made in China. It is reported that at present, Cainiao has begun to add logistics hub facilities in Thailand, Russia, Spain, the United States and other places, and plans to add 1,000 additional export charter flights in the next nine months.

In the next three years, it will prepare goods for small and medium-sized enterprises to sea through nearly 2 million square meters of overseas warehouses.

At present, Cainiao International has built a global intelligent logistics backbone network integrating cross-border package network, overseas warehouse network and cross-border supply chain network, covering more than 220 countries and regions around the world. Most of the cross-border logistics distribution of AliExpress is undertaken by Cainiao International.

Rookie International (i.e. Cainiao’s cross-border logistics business team) has thus become the four new global cross-border parcel networks juxtaposed with UPS, FedEx and DHL. The average daily cross-border logistics orders processed exceed FedEx and DHL, approaching UPS.

Unlike the general impression that only high-value goods can take charter flights, rookie has also taken chartered flights through intelligent order technology to provide a brand-new export logistics plan for small and medium-sized businesses through intelligent order technology, such as mobile phone cases, toothpaste extruders, toilet covers, etc.