Cainiao establishes a direct Malaysia-China e-commerce logistics service

Cainiao establishes a direct Malaysia-China e-commerce logistics service

Cainiao Smart Logistics Network, the logistics arm of Alibaba Group Holding Limited, has announced a partnership with BEST Inc., an integrated smart supply chain solutions and logistics services provider from China, to launch an end-to-end logistics service between Malaysia and China to shorten delivery time for cross-border e-commerce parcels and improve overall customer experience.

Cross-border sea freight shipping duration will be reduced to as fast as six days after departing China, and thereafter customers can receive their parcels as soon as the next day upon clearing customs in Malaysia.

The cross-border logistics service will span first and last mile, sea freight forwarding, overseas warehousing and customs clearance, which means that e-Commerce parcels will be picked up from
China for international shipping to Malaysia where they will be delivered directly to customers.

Cainiao will be leveraging its technological capabilities to improve delivery efficiency and transparency. Each parcel will be tagged with an electronic shipping label to facilitate the ease of real-time tracking from the point of overseas dispatch to final local delivery.

In the near future, merchants in Malaysia will benefit from a seamless end-to-end logistics service that will facilitate their overseas expansion to reach a bigger Chinese market. This is in line with the Malaysian government’s National e-Commerce Strategic Roadmap1 that is aiming to future-proof businesses by supporting their globalization efforts

“The establishment of a direct Malaysia-China e-Commerce logistics service is continued affirmation of our investment into the region. Following the launch of Alibaba’s first overseas electronic World Trade Program (eWTP) hub2 in Kuala Lumpur in 2017, this initiative will go towards supporting SMEs that are looking to engage in cross-border trade. With a direct logistics service, Malaysian SMEs can look forward to selling goods to China via the Malaysian Pavilion3 on, while consumers in Malaysia will benefit from better customer experience when buying from Chinese merchants,” says James Zhao, General Manager, Cainiao Network.

“The China-Malaysia e-commerce logistics service is a great example of how BEST leverages technology and innovation in order to empower our business partners and enrich the lives of
consumers, with efficient delivery services. Southeast Asia has been a key focus area of BEST’s global strategy.

Through investment in automation, information technology and logistics networks, we have developed express delivery networks in five markets in the region, providing customers with speedy,
reliable, and cost-efficient services, while facilitating the growth of local SMEs and cross-border ecommerce,” said Johnny Chou, Chairman and CEO, BEST Inc.

Currently, BEST’s logistics network in Malaysia comprises over 100 last-mile service stations, with plans to operate 270 stations and seven sortation centers in the next three years. This includes the plan to establish a flagship smart sortation hub in Kuala Lumpur to leverage cutting-edge technology to facilitate high-speed automatic sorting and scanning. In the first half of 2020, BEST delivered a total of 25 million parcels in Southeast Asia.

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