80% of bonded warehouses are connected to Cainiao Direct Delivery, and imported goods can be delivered as soon as the next day

After several years of efforts, Cainiao is now able to provide full-domain and full-link solutions for the import market, better connecting buyers and sellers, and becoming the infrastructure of the industry. On July 29, during the Cainiao International Supply Chain and Freight Open Day, Ennet spoke with Sun Beibei, General Manager of Cainiao International Import Supply Chain, to discuss issues such as Cainiao's door-to-door delivery service, specific product delivery, and full-link delivery.  

80% of Cainiao bonded warehouses can provide door-to-door delivery services

Under the epidemic, many domestic consumers are unable to travel abroad, and the overall demand for imported goods has continued to increase. According to data from the General Administration of Customs, the total value of China's import and export of goods in the first half of this year was 19.8 trillion yuan, a year-on-year increase of 9.4%. Among them, the total value of imports was 8.66 trillion yuan, an increase of 4.8%. Cross-border imports maintained a growth trend.

In order to ensure consumers' shopping experience, this year Cainiao has focused on launching door-to-door delivery services for imported goods to further optimize logistics services. Sun Beibei introduced that we are very determined to deliver goods to the door, and will completely use the self-operated warehouse and distribution method (Cainiao direct delivery) to increase the door-to-door delivery rate. Now 80% of Cainiao bonded warehouses can provide high-quality door-to-door delivery services.

For Cainiao, one of the biggest challenges in home delivery is the epidemic. This year, sporadic outbreaks of the epidemic still occurred in China, and a large number of Hong Kong and international trunk lines were shut down, resulting in high logistics costs. Under such circumstances, Cainiao still maintained a relatively stable order volume. This is due to Cainiao's comprehensive promotion of the full-category warehouse business.

Sun Beibei said that the layout of the warehouse network is the key point to effectively solve the instability of the epidemic, and the specific operations should be done from the two aspects of distribution and allocation.

First of all, Cainiao has set up multiple warehouses for direct sales. If there is an epidemic in one place, it supports immediate delivery of national business from another warehouse. At present, many leading merchants use two-location warehouses or three-location warehouses to ensure the flexibility of their supply chain.

Secondly, distribution. Under the epidemic, the efficiency of self-operated distribution is higher. We started using Cainiao direct delivery to Shanghai in early May. In mid-May, direct delivery was undertaken by direct delivery for direct sales and brand merchants to Shanghai. Therefore, if this kind of self-operated network encounters an epidemic, it is nothing more than cooperating with more disinfection, but the overall logistics is smooth.

In the context of increasing demand for large items, Cainiao also provides door-to-door delivery services for large items. In Sun Beibei's opinion, some large items should be delivered to the door more than small items. And Cainiao will mark the front-end transaction terminal with a "compensation for failure to deliver to the door" label. If the consumer believes that the courier did not deliver the item to the door, he or she can file a claim, and the compensation fee is high.

The reason for making such a promise is Cainiao's confidence in its direct delivery network. It is understood that Cainiao's direct delivery system is self-operated from personnel to trunk networks, and small items at the end are also delivered by direct employees, which effectively guarantees the timeliness of delivery.

Launch exclusive bonded warehouses, imported goods can arrive as soon as the next day

In addition to direct delivery services, against the backdrop of diversified consumption, the demand for maternal and child products, beauty products, pet food, and other products is on the rise. In this context, Cainiao has also launched exclusive bonded warehouse services for some special categories.

It is understood that Cainiao has launched exclusive bonded warehouses for products with complex SKUs such as pet food, milk, and cosmetic contact lenses , which are located in many core cities across the country.

"Our current average transportation distance is about 1,000 kilometers. With such a long average transportation distance, the average delivery time is about 2.5 days, which is not significantly different from domestic delivery. For some time-sensitive imported products such as maternal and infant products, if merchants join our warehouse distribution project, when the transportation distance is less than 1,000 kilometers, our next-day delivery ratio will be very high." Sun Beibei said.

In the beauty and cosmetics category, which is another category with high demand, Cainiao has been working closely with brands to ensure delivery. According to Sun Beibei, Cainiao will directly serve more and more international brands and brands in the beauty and cosmetics category.

In fact, Cainiao has been promoting in-depth cooperation with global brands. Two years ago, it entered the Hainan duty-free market. Last year, Cainiao announced that it would jointly build a global digital supply chain demonstration zone in Hainan. In the future, Cainiao will introduce more import merchants and a large number of imported goods, focusing on building customized warehouses for medicines, fragrances, and cold chain products.

In addition, for commodities that require temperature control, such as chocolate, capsules, and probiotics, Cainiao bonded warehouses have also launched a constant temperature cold chain delivery service, equipped with special insulation packaging and constant temperature cold chain delivery, allowing consumers to enjoy delicious imported chocolate that does not melt even in the hot summer.

At present, Cainiao’s exclusive bonded warehouse has served more than 3,000 international brand merchants, duty-free and import sellers.

Cainiao's full-chain delivery helps merchants improve their performance

For these merchants, the exclusive bonded warehouses and door-to-door delivery services provided by Cainiao are both beneficial and have greatly contributed to the further growth of their business.

"After we connected to the door-to-door delivery service of Cainiao Direct, consumer satisfaction has increased significantly," said Ms. Xiong, supply chain manager of Leqi Network Technology Co., Ltd. Since the cross-border e-commerce company mainly sells a variety of imported milk powders such as Wyeth and Nestle, this kind of "urgent need" for mothers has high requirements for logistics timeliness and safety. The seamless connection between bonded warehouses and Cainiao Direct has solved this logistics pain point.

For merchants, improved consumer satisfaction can greatly increase store conversions, thereby improving sales performance. For Cainiao, the meaning of its existence lies in providing merchants with self-operated delivery services, helping merchants optimize consumers' logistics experience, and opening up new growth space for cross-border merchants with efficient logistics.

"The self-operated delivery service provided by Cainiao to merchants does not add any additional charges, and merchants can clearly see that they have promised to deliver the goods to the door during operations. If the goods are not delivered, they will be compensated. This will give consumers a better experience and further promote purchases." Sun Beibei said.

Cainiao is also working hard to provide a better experience for merchants.

Sun Beibei said that in the face of the uncertainty of the global epidemic, Cainiao will directly cooperate with large airlines and shipping companies in advance to lock in space, so when air freight rates fluctuate, Cainiao can ensure stable freight rates. Whether it is goods shipped from the United States or Europe, we now have cabins every week, which provides merchants with highly certain space and value.

At the same time, Cainiao's local advantages are also obvious, because Cainiao's bonded warehouse network covers more than 20 ports across the country, and has high flexibility in local customs capabilities and port-to-warehouse connections. For example, if our charter flight from the United States to Shanghai encounters a problem, it can be directly changed to Hangzhou, providing customers with more options, so flexibility and timeliness will also be higher.

Based on the mature logistics network, Cainiao can now provide full-domain and full-link solutions for the import market, allowing more cross-border goods to truly achieve worry-free cross-border transportation.

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