Alibaba’s logistics arm Cainiao Network has fully implemented its Apollo proprietary logistics technology to enhance parcel processing capacity by 10-fold in 11 Asian countries during peak periods when hundreds of millions of parcels are processed.
What this means, Cainiao explains, is Alibaba customers in these 11 Asian countries can receive parcel from China as soon as the day they were ordered.
Apollo is now adopted by e-commerce and logistics partners in Indonesia, Malaysia, Singapore, Vietnam, Thailand, Philippines, Pakistan, Nepal, Myanmar, Bangladesh and Sri Lanka, with an estimated coverage of 1 billion users.
Cainiao’s complete implementation is expected to lead to 50 percent increase in delivery accuracy and 10 percent cut in average cost with smart order splitting, route optimisation and pricing technologies.
Developed and implemented by Alibaba’s logistics arm, the Apollo system was launched to establish a “highly efficient logistics network and operations standardisation” across different Alibaba business units and partners.
Cainiao says the algorithm can be constantly reiterated and optimised based on changing business needs and environment.
The logistics company noted the development was done within 6 months, and saw 600 developers and engineers leverage big data and intelligent algorithms to optimise various objectives based on parcel location, destination, cost considerations and partner logistics efficiency.
With one of the fastest growing e-commerce markets in the world, Southeast Asia is projected to reach US$53 billion in 2023, growing at a rate of 23 percent, Forrester said.
But long delivery times and spiked costs have caused trouble for parcel orders, with 34 percent of consumers in Southeast Asia unsatisfied with current delivery services, according to iPrice.
Cainiao said “customer satisfaction is a key factor for customer retention and optimising the delivery experience is crucial to improving customer lifetime value.”
“Southeast Asia is a dynamic market which is home to a large number of e-commerce and logistics firms, but its overall logistics user experience needs improvements in order to remain competitive and efficient,” expressed Weicai Chen, Apollo project manager, in a statement.
“We are committed to digitalising the whole industry by upgrading its logistics technology and infrastructure with our local partners. With Apollo, we will be able to drive the integration of logistics capabilities with e-commerce strategy to cope with the e-commerce boom in the region,” he added.