Cainiao opens South Korea distribution centre

Alibaba-owned Cainiao Network has announced the launch of its first South Korean distribution centre and trucking line haul route. The logistics giant says that this will enhance cross border delivery services for AliExpress, its parent company’s online marketplace.

Parcels coming from mainland China will be delivered in as few as three working days, and on average five working days. At the same time, Cainiao plans to extend its last mile delivery network by adding more courier partners and to establish a comprehensive nationwide logistics network outside of Seoul.

The Cainiao distribution centre is within an hour’s drive of South Korea’s capital. The 1500 square metre site is also close to the local customs checkpoint to further improve the efficiency of cross-border trade. Thanks to automation the site aims to save more than 12 hours in processing and handling time for inbound parcels from China.

“To accelerate delivery time, Cainiao has also established a trucking line haul route with daily capacity of 1 ton that is connected to the distribution centre. Once packages are sorted and packed, they can be brought directly to the nearest courier station to be dispatched via last mile delivery.

“The launch of this distribution centre and trucking line haul route is another key milestone for Cainiao’s business in South Korea, where we witnessed a 50 percent increase in sales volume over the past year. The localised logistics network, along with a cost-effective logistics solution, will enable cross-border merchants to continue meeting consumer demands and improve their overall shopping experience,” said Shawn Louis, Executive General Manager for Cainiao Global.

“By expanding our partner ecosystem and implementing smart logistics in the distribution centre, we are able to optimize the efficiency of the entire value chain. We look forward to achieving its full potential during the upcoming 3.28 sale, when a surge in parcel volume is expected,” Shawn added.

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