Global Intelligent Logistics

New battlefield: an "aircraft carrier", three networks, the top four in the world, rookie "copy" rookie

On June 10, the Global Intelligent Logistics Summit was held. Wan Lin, CEO of Cainiao, announced that for the future, Cainiao Network is positioned as a global industrial Internet company driven by customer value. Obviously, globalization is still the key word for rookies' future direction.

In the article "Announcement of Important Strategies of Cainiao Network", logistics news also said that about Cainiao, through this year's Global Intelligent Logistics Summit, we saw four keywords: deepening, careful, outward, and combination of weight. Among them, outward refers to globalization.

So, what efforts have rookie made in globalization? What achievements have been achieved? This article shares some insights from logistics.

In 2020, China's economy can be said to be "the scenery is unique", and the foreign trade economy is even more booming. Among them, cross-border e-commerce is also growing rapidly. According to the data of the General Administration of Customs, China's cross-border e-commerce exports of 1.12 trillion yuan in 2020, an increase of 40.1%. Since the beginning of this year, it has maintained high growth. Take Yiwu as an example. As the world free trade center for small commodities, the cross-border e-commerce retail export volume reached 19.665 billion yuan in the first quarter of 2021, an increase of 21.05 percent year-on-year.

Against this background, rookies have also increased their relevant layouts. Following the launch of preferred warehouses in Weihai, Dongguan and Hong Kong, Cainiao and AliExpress launched the Yiwu local preferred warehouse network project in May this year. The preferred warehouse is located in the largest hub of rookie export logistics in East China. It is the first preferred warehouse in East China. It is both an industrial warehouse and a central warehouse. According to the introduction, the preferred warehouse can bring value in terms of improving timeliness and reducing costs.

Time limit: Preferred warehouse can be regarded as the "front warehouse" of cross-border logistics lines, which is usually located near domestic customs clearance ports, such as Yiwu warehouses, only 1.5 kilometers away from the customs clearance center. Yiwu merchants enter the warehouse nearby, and then send it from Hangzhou Port to all parts of the world through the rookie global parcel network. The logistics time limit can be increased by more than 48 hours.

Cost reduction: Compared with merchants who deliver their own goods, preferred warehouse delivery can save more than 20% of warehouse rent and labor costs. In addition, the preferred warehouse is located in China, and the stocking cost will be much lower than that of overseas warehouses, which can greatly reduce the financial pressure on small and medium-sized merchants.

In addition, for incoming merchants, rookies can also provide a series of enabling services. The person in charge of rookie's relevant business told the logistics that the preferred warehouse can provide "full logistics custody" service for the resident merchants. The merchant only needs to prepare the goods here, and the subsequent delivery, customs clearance and performance will be completed by Cainiao and AliExpress. In addition, in addition to the integrated warehouse integration solution, it will also provide merchants with interest support such as explosive incubation, supply chain planning, fully automatic order fulfillment, worry-free logistics global distribution, etc.

In fact, this series of services can already have a glimpse of rookie's ability to accumulate in international logistics.

As we all know, the international logistics chain is long and has many links. Take rookie as an example, a cross-border package can reach the recipient's hands after at least four links: Section A, receives the rookie warehouse from the merchant warehouse and completes customs declaration; Section B, the trunk distribution link, corresponding to sea, air, rail and container transportation; Section C, after transshipment to the rookie overseas logistics hub, through Pass the ground processing, carry out customs clearance, etc., complete the allocation and transshipment, connect the ground card network; Section D, and finally carry out the distribution of the terminal destination.

Long links bring lag in timeliness. Take China to Brazil as an example. In the past, the logistics time limit even lasted for more than 90 days, and buying winter goods in summer is not a joke. This timeliness not only affects the shopping experience of consumers, but also brings financial pressure to merchants. That's why Alibaba proposed "72 hours international reach". In order to achieve this goal, Alibaba has also matched a variety of measures with rookies in recent years. For example, the concept of eWTP is proposed to build an information cooperation platform through coalition governments, non-governmental organizations and enterprises to provide one-stop solutions such as logistics, customs clearance, payment and finance.

Among them, as the top-level design at the eWTP logistics level, eHub will mainly assume the functions of logistics hubs and cooperate with local logistics enterprises to provide one-stop logistics services. Through eHub, users can get real-time freight quotations, online ordering, second-level customs clearance and cargo tracking. At present, the first six major eHubs, including Kuala Lumpur, Hong Kong, Dubai, Hangzhou, Moscow and Liege (Belgium), have achieved certain results: in Kuala Lumpur eHub, the rookie system can directly connect to Malaysian customs, elevating offline manual declaration to online declaration, 99.9% of online pre- The declared package has obtained second-level customs clearance, reducing the customs clearance time by nearly 10 million hours for small and medium-sized enterprises every month.

At this year's Global Intelligent Logistics Summit, logistics news noticed that in terms of international logistics, Cainiao has built three networks: global supply chain network, global freight network and global parcel network.

Global freight network: Through the network of more than 2,000 overseas warehousing, customs, land transportation and other partners in 921 cities/ports around the world, Cainiao provides end-to-end international comprehensive logistics services for customers around the world, and realizes digital visualization throughout the whole process. Customers can track freight price changes online.

Global supply chain network: It mainly serves Tmall International, Koala and other imported cross-border e-commerce platforms, and provides full-link logistics platform services for large global brands. At present, the rookie global supply chain has achieved the global TOP20 cities on the 5th by improving efficiency and reducing inventory, helping sellers save 20% of the overall supply chain cost.

Global parcel network: covering more than 200 countries and regions around the world, composed of domestic collection network, international trunk network, overseas trunk network, overseas distribution network and logistics brain behind it.

In short, Cainiao is building an international logistics infrastructure that can provide warehousing, distribution, customs, trunk lines and end-to-end logistics solutions. Yiwu Preferred Warehouse is a small component of this infrastructure. A series of services behind Yiwu Preferred Warehouse can be launched, and they are also backed on this infrastructure.

As the industry knows, cross-border e-commerce is undoubtedly ushering in a golden age. Some institutions predict that the size of the cross-border e-commerce market may increase from 2 trillion to 8 trillion in the next five years, with an average compound annual growth rate of 30%. Just as SARS accelerated the development of the domestic e-commerce market and thus driven the express delivery boom, the COVID-19 epidemic is also accelerating the onlineization of cross-border consumption, corresponding to the strong demand for cross-border logistics.

In fact, Alibaba's international 72-hour delivery is not available on the market, but it is mainly commercial express delivery. The high price makes commercial express not suitable for the needs of cross-border e-commerce. Although the UPU network is cheap, it cannot meet the needs of cross-border e-commerce. Not only that, the diversification of categories in cross-border e-commerce has also led to different logistics needs, such as not only dedicated lines, but also overseas warehouses. To this end, the global cross-border parcel network built by Cainiao hopes to provide low-cost and time-effective services. In addition, relying on three networks to provide diversified products and services to meet cross-border logistics needs.

According to the available information, taking export business as an example, rookies can provide online delivery services such as economy, simple, standard and fast according to different characteristics - product stratification can meet different levels of needs. In addition, at this summit, Cainiao has repeatedly emphasized its products such as "5 USD 10" and "2 USD 20 days" - relatively low prices, which can also allow Chinese merchants to communicate with more competitive prices around the world.

It is not difficult to understand that the prosperity of e-commerce is inseparable from two factors, price and service. A sufficiently low logistics cost will further improve the price advantage of e-commerce, and relatively high-quality service will improve user stickiness. For cost performance and good service, rookies summarized them in one word: inclusive. How to guarantee inclusive? One of the answers given by rookies is technology, such as smart combination.

Of course, the international logistics environment in the past year or two has been special. It has become the norm for cargo owners and sellers who also need to find deterministic services. Everyone wants to solve all kinds of problems by increasing transportation capacity. But the fact is that the upgrading of production tools takes time and does not meet expectations in the short term.

When the capacity cannot be added, the problem can only be solved in a more flexible way. On the one hand, Cainiao has cooperated with more partners through digitization and other means, and on the other hand, it has also increased its own expansion. A rookie-related business leader said that in the past year, his team has used one day as three days and worked for three years a year. According to the data, by the end of 2020, Cainiao had a storage area of more than 1.5 million square meters and more than 1,500 land and sea routes around the world. It is expected to open more than 800 international cargo flights by the end of this year.

At present, rookies still maintain the posture of accelerating running, including localized infrastructure construction in various countries and regions. Earlier, Cainiao announced the official opening of the Middle East transshipment center in Dubai. After the opening of the center, cross-border parcels sent by Chinese merchants to the Middle East will first arrive in Dubai by rookie charter flights, and then transport them to Saudi Arabia, Oman, the United Arab Emirates and other countries through the transshipment center. Thanks to the accumulation of partners such as rookie and Sino-foreign transportation, the overall time limit for the delivery of cross-border parcels in China and the Middle East has been reduced from the past 45 days to 20 days.

In addition to Liège, Belgium, Madrid, Spain and other ports, Cainiao has recently opened three new ports: Budapest, Hungary, Amsterdam, the Netherlands, and Paris, France. In addition, 8 new countries have been added to the smart order, covering a total of 32 countries, including Russia, Spain and France.

In China, Cainiao will jointly build a global digital and intelligent supply chain demonstration area in Hainan, including fully participating in the construction of duty-free logistics infrastructure on Hainan's island and outlying islands, Hainan global supply chain center, supporting the upgrading of Hainan's global freight network, and building a Hainan free trade port merchant service center.

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As mentioned above, the international logistics chain is long and large-scale. Cainiao has made a lot of layout in this regard, and there is still more work to be done. The above combing is only part of it.

[Summary a few thoughts at the end of the article]:

1. In terms of international logistics, the status of Chinese logistics enterprises does not match the status of Made in China. As a world factory, Made in China's position as a global manufacturing industry is obvious. However, in terms of going to sea, Made in China is often dominated by overseas logistics companies. One manifestation is whether it is sea or air transportation. In the list of the world's top 10 enterprises, except for individual enterprises such as Chinese and foreign transportation, there are very few Chinese enterprises. In the long run, with the upgrading of China's status and Made in China, Chinese enterprises are bound to usher in a period of development opportunities in international logistics.

2. As an integral part of export trade, cross-border e-commerce is undoubtedly ushering in a golden age, thanks to the policy promotion brought about by domestic policies and international agreements, and because the accelerated online consumption of the COVID-19 epidemic. However, the development of cross-border e-commerce needs to be matched with payment, logistics and other infrastructure. In this regard, we can review the domestic e-commerce after SARS. The difference is that cross-border e-commerce is more complicated than domestic e-commerce. But in any case, cross-border logistics is ushering in a phase of explosive growth. Moreover, unlike traditional foreign trade, in terms of cross-border e-commerce, domestic manufacturers, brands, including sellers, have a greater say in choosing logistics companies, which also brings opportunities for Chinese logistics enterprises.

3. From the supply side, cross-border logistics links are long and many links. On the one hand, it tests the professionalism of relevant enterprises. On the other hand, it also requires stronger coordination ability - it is difficult for an enterprise to complete all logistics services from beginning to end, but now the shippers/merchants need a one-stop service of the full link - this It is necessary for relevant enterprises to be able to integrate resources, cooperate with each other, and give full play to their respective advantages.

4. From the perspective of demand, in addition to the one-stop service of the whole link, under the epidemic, shippers have also shown a desire for deterministic services, requiring logistics service providers to have more flexibility, flexibility, efficiency and global service capabilities. In addition, compared with the attributes of goods in traditional trade, e-commerce goods have small batches, high-frequency and personalized attributes, which also brings different logistics needs. All of the above put forward new competency requirements for participants in cross-border logistics, such as digital innovation capabilities, ecological synergy capabilities and infrastructure capabilities.

The advantage of Cainiao is that it relies on many cross-border e-commerce platforms of Alibaba, has business flow demand upstream, has platform operation experience, and accumulated digital innovation, ecological coordination and other capabilities. With demand, experience and technology, coupled with its own status and capital strength, it is natural for rookies to make a difference in international logistics.

Cainiao's actions not only provide logistics and delivery facilities for the development of cross-border e-commerce, but also allows Cainiao to find a new incremental market. According to the disclosure, in fiscal year 2021, after excluding Alibaba's related revenue, Cainiao's external revenue was 32.7 billion yuan, with an annual growth rate of 68%. According to the news, most of this revenue comes from smart supply chains and international logistics. Moreover, in March 2021, the average daily cross-border parcels of Cainiao Global Parcel Network exceeded 5 million, ranking among the top four in the world, alongside the three giants such as FedEx.

At the summit, Wan Lin said, "This is the era of rookie navigation. Cainiao's cash flow was positive last year, which proved to be profitable, but what rookie needs now is not profit, but more investment and several more aircraft carriers. Obviously, international logistics is becoming one of the "new aircraft carriers" of rookies.