Cainiao: This partnership is a step forward in enhancing China-Korea cross-border logistics

Cainiao: This partnership is a step forward in enhancing China-Korea cross-border logistics

Cainiao Network, the logistics arm of Alibaba Group Holding Limited, has  partnered with South Korea’s CJ Logistics, a subsidiary of CJ Group whose business spans across four major industries, namely food and beverage, biotechnology, logistics, and entertainment and media, to streamline and optimise cross-border logistics services between China and South Korea.

In addition, both parties are in the midst of discussions with AliExpress to establish fulfillment centers in South Korea to further safeguard logistics services for local consumers.

 This partnership aims to enhance customer experience and quality of services by accelerating deliveries between China and South Korea to as fast as three days, with deliveries even on Sundays. This will be achieved by combining CJ Logistics’ expertise and range of logistics offerings in South Korea with Cainiao’s cross-border logistics capabilities in areas such as domestic warehousing, line haul transportation and first mile network.

 CJ Logistics has an extensive infrastructure with strong logistics capabilities in South Korea. Of which, it owns and operates a mega logistics hub in Gonjiam since 2018, with a total area of over 300,000 square meters and daily parcel handling capacity up to 1.7 million. It also has more than 274 distribution centers covering major cities across South Korea.

 Shin Young Soo, CEO of Parcel E-Commerce Business Unit at CJ Logistics, said at AliExpress’ South Korea press conference in March: “Establishing partnerships with global leading e-Commerce partners such as AliExpress and Cainiao create opportunities for us to deliver greater value and better customer experience. In the future, we will continue to optimise cross-border fulfillment services and partnership framework to achieve mutual growth and to offer new overseas shopping services for consumers.”

 Wang Ke, Asia Pacific regional manager of Cainiao International Express, commented: “The partnership with CJ Logistics marks a step forward in enhancing China-Korea cross-border logistics experience for merchants and consumers. Here, Cainiao will be able to further optimize the logistics efficiency of the entire supply chain, especially when it comes to safeguarding delivery timeliness during major shopping festivals. This will enable us to deliver a customer experience and shipping guarantee that is on par with local eCommerce.”

 Last year, China launched various initiatives to strengthen cross-border logistics between the two countries, such as the launch of a distribution center and trucking line haul service in South Korea to expedite AliExpress deliveries from China. These helped to reduce operating costs by 10 percent and save more than 12 hours in processing and handling time for South Korean-bound deliveries.

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