Alibaba Cainiao Initiatives in Air Cargo Logistics

Luhao (John) XIHead of Capacity Planning & ImplementationOutbound, Cainiao Global, AlibabaSept 7, 2018

资料来源：菜鸟

Cainiao Network is part of Alibaba Group

Alibaba Eco-system e-Commerce

DATA-

REFUEL

A data driven, social collaborative logistics platform to offer inclusive logistics solutions

DIGITAL MEDIA & ENTERTAINMENT LOCAL SERVICESCORE COMMERCE

SERVED BY PAYMENTS, FINANCIAL SERVICES, LOGISTICS, ADVERTISING, DATA MANAGEMENT & CLOUD COMPUTING

DATA-

DRIVEN

PAYMENT & FINANCIAL SERVICES

LOGISTICS

ADVERTISING DATA MANAGEMENT PLATFORM

CLOUD COMPUTING

资料来源：菜鸟

Cainiao is inaugurated in

Shenzhen

2013May 28

Entered a strategic alliance with 13 delivery firms in China to jointly establish a big-data logistics platform

2014May

Launched the first cloud-based logistics

platform in China

2015December Completed a RMB10 billion

round of financing from top sovereign fund investors including Singapore's GIC and Temasek, Malaysia's

Khazanah Nasional Berhad and China's Primavera

Capital Group.

2016March

2017March

2017November

Cainiao Milestones

2016

January

Formed the Cainiao Alliance with partners to jointly improve e-commerce

logistics in China

Announced the creation of the first overseas logistics hub in Malaysia

Announced the establishment of Cainiao

Green Alliance Foundation, China’s first

charity foundation dedicated to promoting green logistics with the

commitment of RMB300 million

During the 2017 November 11 Global

Shopping Festival, Cainiao processed 812 million

logistics orders

2017September

Alibaba made an additional investment

of US$803 million (RMB5.3 billion) to

increase its ownership of Cainiao to a majority

stake of 51%

Alibaba and Cainiao plan to invest RMB100 billion over the next five years on future global

logistics infrastructure

资料来源：菜鸟

Worldwide delivery

72-hour

China nationwide delivery

24-hour

Our Mission

资料来源：菜鸟

Superior consumerexperiences

Smart supply chain services for businesses

Technology andinnovation driven social collaborativeplatform

Our Vision

Consumers Businesses Partners

资料来源：菜鸟

Deliver cross border EC air cargo value chains

Visibility & Transparency

• Link data among players to break data isolated islands

• Connect capacity supply and network planning with demands

Compliance & Standards

• Transportation model

• Tracking & Trace

• Data access governance & exchange

• Li-battery & cold chain

Collaboration & Efficiency

• eHub to connect airlines, GHAs, Customs, and forwarders

• Streamlined process to improve efficiency and reduce cost

Serve global eCommerce businessthrough safe, reliable, flexible, and open air network

Alibaba Cainiao leverages the power of data and technology, to offer added values to air cargo eco-system

API standard: how we exchange

Web based data exchange is as old as the web (1991). Today the typical web API’s are RESTful and sophisticated token based security like OAuth is easily implemented

Data standard: what we exchange

In a global transport and logistics environment there can be no single common data standards; Using ontologies (digital dictionaries) to automatically interpret and translate data between parties

Access governance: whocan exchange

Access to the Internet of Logistics will be managed through distributed trust networks that will be managed by accredited governance entities

Visibility & Transparency: Initiatives to work with IATA Cargo on ‘OneRecord’ Program

Visibility & Transparency: Redefine the process

shipper

export forwarder

airlineimport

forwardergroundhandler

consignee

groundhandler

importcustoms

exportcustoms

from process focus

intelligence & collaboration

ConsigneeShipper

GSDP: Global Smart Delivery Platform

O/D

Linehaul management

MAWB, HWAB

Vol. & Flt

Allocation plan

Flt monitor

RFS & Trucking

AirlinesAllocation Palletizing Landed

Linehaul Process

TransferBooking

Truck Network

Dispatch

Sorting Center

Handover pre-alert

H/O Schedule

Flt schedule

Transaction Order;Logistics Order

Cargo Info.

Last Mile

Dispatch

Space mgmt

platform

Flt. Trucking

Volume ForecastBooking

ManagementFulfillment Monitor

Exception handling

Analysis & Optimization

Visibility & Transparency: Redefine the process

Compliance & Standard

• AI and algorithm to classify goods & merchants

• Trade compliance tools

• System integration & BC model innovation with Customs

• Goods description optimization & HS-code

资料来源：菜鸟

11

Collaboration & Efficiency: Global hubs to enhance collaborations

资料来源：菜鸟

Smart logistics will enter into accelerating stage in next 5 years

12

Big data decision making

Agile automation Open logistics platform

Optimized logistics brain

Past focus: efficiency of goods movingFuture focus: efficiency of data moving

Past focus: automationFuture focus: flexible, scalable automation

To build a data-driven, social collaborative smart logistics platform to improve efficiency and reduce cost

Leverage of big data and AI to optimize supply chain management and logistics decision-making process

THANK YOU