Cainiao Group (Cainiao), the logistics arm of Alibaba Group Holding Limited, has unveiled tailored offerings to strengthen supply chain capabilities for the fast-moving consumer goods (FMCG) sector. The new offerings consist of a goods labelling service and a consolidated B2B inventory and supplier management service to provide greater optimisation and cost savings for unique order dispatches. Leading Chinese FMCG brand Bestore has been announced as the first partner to adopt Cainiao’s offering in its global supply chain operations.
Labelling and packaging FMCG goods pose a unique set of challenges for brands exporting globally due to the requirements for compliance with local laws and regulations and the need to meet the expectations and preferences of local consumers. Companies must keep abreast of requirements like mandatory packaging information that includes ingredients, allergens, nutritional facts, country of origin, expiration date, warnings, instructions, and more, which may further complicate the export process.
To help brands navigate the complexities of local laws and regulations, Cainiao will provide its partners with end-to-end support for labelling FMCG goods, from designing, production, and distribution of labels. Additionally, with the service operating in mainland China, Cainiao will reduce overall consolidation and value-added services costs by ten per cent, enabling partners to pass the cost savings on to their customers.
This is complemented by Cainiao’s capabilities in streamlining inventory and supplier management for FMCG companies, where suppliers can route the goods to Cainiao’s warehouse for consolidation and labelling. Logistics needs for subsequent supply chain nodes such as distribution, first mile, customs clearance, and line haul shipping for exports to destination countries are aggregated, helping FMCG companies to increase shipping efficiency and reduce cost by up to 25 per cent by reducing Less than Container Load (LCL) occurrences.
Cainiao is poised to launch its offerings through a partnership with Bestore, a leading premium Chinese FMCG brand with a presence in over 30 overseas markets, to provide full-chain supply chain services for its food products. This will play a key role in supporting Bestore’s globalisation strategy as they strive to expand the reach of Chinese food products to global audiences.
“Globally, FMCG companies are experiencing a significant cost hike as they cope with unabated prices of several commodities. As a supply chain partner, we notice that companies are looking for ways to streamline, optimise and innovate to drive down costs and maintain price competitiveness across brands and products. With that in mind, our offerings are specially tailored for FMCG companies to help them better navigate complex local regulations and inventory and supplier management while reaping cost savings simultaneously,” said Ricky Xue, General Manager of Southeast Asia, Cainiao Group.
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