Alibaba’s Logistics Arm Cainiao Invests HKD 5 Million to Keep Logistics Operations Flowing During Lunar New Year
- The investment will be used to keep the full-fledged logistics operations running in Cainiao’s warehouses, 170 collection points, partner and courier network, and customer service
- The plan is to expand the service to other regions in the near future
Cainiao Smart Logistics Network, (“Cainiao Network”), the logistics arm of Alibaba Group Holding Limited, today announced a HKD 5 million (USD 645,000) investment to keep logistics operations flowing during the upcoming Lunar New Year festivities, which typically spans 2 weeks. The launch of this value-added service means that businesses in Mainland China and Hong Kong will be able to continue their sales and deliveries even during the traditional Lunar New Year shutdown, and Hong Kong consumers will be able to enjoy their shopping without worrying about shipping delays. After the Hong Kong pilot, the plan is to expand the service to other regions in the near future.
This service would encompass a 1500-strong workforce across the full chain of logistics operations, spanning Cainiao’s warehouses, 170 island-wide collection points, partner and courier network as well as customer service.
With the latest Cainiao initiative, consumers in Hong Kong will be unaffected by the logistics service closures and be able to receive their parcels within three working days. Consumers will also receive additional protection with compensation for late deliveries that take more than three working days.
“With the pandemic, logistics has increasingly served as an essential service that connects people to goods, services and most importantly, their loved ones. During festivities such as this Lunar New Year, we hope that by keeping the logistics service running, we are creating opportunities for businesses to increase sales revenue and for consumers to connect with their loved ones by sending gifts across the border or to enjoy local produce without having to commute home. As Taobao and Tmall’s official logistics provider, we are always seeking new and better ways to deliver more value-added logistics services to benefit businesses and consumers,” says Ray Cheuk, Head of Operations (Hong Kong), Cainiao Global Supply Chain.
Traditionally, logistics services will be shut down for as long as three weeks, with services such as acceptance of orders and parcel deliveries closing as early as two weeks prior to the Lunar New Year, and only resuming on the seventh day of the lunar calendar. This meant that businesses will have to manage inventory, production timeline and shipping deadlines in order to ensure that they deliver to their customers successfully during the seasonal rush. The Lunar New Year shutdowns are usually followed by mass demand from businesses that need to make up for the two to three weeks’ worth of the delayed shipment.
This announcement comes after the recent launch of its reverse logistics channel between Hong Kong and Mainland China, as well as delivery guarantees to provide assurance and offer protection against late deliveries, damaged and lost goods.