Alibaba unit expands Lazada's logistics facilities to accelerate cross-border shipping

LAZADA customers in Singapore, Malaysia, Thailand and the Philippines are now able to receive their parcels as quickly as three days thanks to new distribution centres introduced by Alibaba's logistics arm, Cainiao Network.

In a press release issued on Thursday, Cainiao Network announced it had enhanced the cross-border logistics efficiency of Lazada, which was acquired by Alibaba in 2016, by 50 per cent with the launch of the distribution centres in China's export-focused cities of Yiwu, Shenzhen and Quanzhou.

The newly-launched distribution centres will offer merchants services that include doorstep pickup, distribution and cross-border shipping services where shipment status is synced in real time through Cainiao's parcel-tracking system.

According to Cainiao, this new process will help Lazada merchants to save up to 10 hours for the first-mile delivery and avoid up to three days of delay during peak shopping seasons.

As part of the accelerated service, Cainiao said in April it introduced community-based parcel consolidation stations to support 11,500 small to medium-sized enterprises (SMEs) across 20 cities. The initiative enables SME merchants to deliver goods to nearby stations, where the consolidated parcels would then be transported by Cainiao to one of its distribution centres.

The company said this will also help to reduce time and improve efficiency in first mile deliveries, while improving workflow for merchants and business.

"This year we have commenced trial operations for cross-border express delivery services in Southeast Asia with a focus on Singapore, Thailand, the Philippines and Malaysia, to enable consumers to receive their parcels in as fast as three days," said Shawn Louis, executive general manager for Cainiao and chief logistics officer of LazGlobal, the cross-border selling service of Lazada.

"We believe that an efficient and comprehensive logistics network is key to facilitating global trade and supporting small businesses and online merchants to tap on a booming Southeast Asian market," he added.