Alibaba to invest over 100 bn yuan on smart logistics

Chinese online retailing giant Alibaba Group has announced an investment plan of 100 billion yuan for building smart logistics network to boost the company's efficiency and delivery reach to customers.

 

Executive Chairman of Alibaba Group, Jack Ma made the announcement at the 2018 Global Smart Logistics Summit in Hangzhou, China.

 

The new network being planned is aimed to ensure 24-hour product delivery across China and 72-hour delivery to the other countries, the company said in a statement.

 

Moreover, the smart network plans to cut down the delivery costs to less than 5 per cent and increase the profit margins for the manufacturing industry and logistics sector.

 

"This network is not only national but global. This is what we will work closely with our partners to achieve and bring benefits to all," said Ma.

 

Alibaba claims that its logistics affiliate, Cainiao Network has reduced cross-border shipping time to less than 10 days for some countries along with same-day and next-day deliveries within China and over 1,500 other counties and districts.

 

"Today, the industry can process 100 million packages a day. In the future, we will need to process one billion packages a day. The logistics industry needs to get prepared for that with a robust infrastructure," Ma added.