Cainiao - Tmall’s Inbound Logistic Service

Introduction

This presentation is based on Alibaba’s document: Overview of Cainiao Cross Border Inbound Logistics

Content

1.  Cainiao Partners

2.  Cainiao CBT B2C Inbound Networks

3.  Cainiao CBT B2C Inbound Services – FTZ Bonded Model

4.  Cainiao CBT B2C Inbound Services – Overseas Consol Model

5.  Induction for New Merchants

1. Cainiao CBT B2C Inbound Networks

2. Cainiao CBT B2C Inbound Networks - Domestic

Cainiao FTZ hubs

Cainiao Inbound Gateways

Guangzhou

Ningbo Hangzhou

Shanghai

•  3 FTZ hubs with 50k sqm warehouse space, ready to expand to 100k sqm

•  Another 2 FTZ hubs in Shenzhen and Shanghai started operation by Q2 2014

Shenzhen

2. Cainiao CBT B2C Inbound Networks - Global

•  4 hubs in the US, 1 in Germany and 1 in Australia •  Taiwan hub operational by Dec 2014, UK and Korea hub by Q1 2015

Operation Consol hubs Planned Consol Hubs

3. Cainiao CBT B2C Inbound Services – FTZ Bonded Mod

Overseas merchants ship the cargo in bulk by themselves or Cainiao assigned forwarder to Cainiao designated Free Trade Zone (FTZ) bonded warehouse. The safety inventory and replenishment is based on historical sales and volume forecast as well as the marketing initiatives associated. Once Tmall Global platform generate B2C orders, Cainiao bonded warehouse will process orders by picking & packing and declare it to customs as overseas personal purchase so as to enjoy China import VAT exemption.

3. Cainiao CBT B2C Inbound Services – Overseas Consol Model

Overseas merchants receive the orders from Tmall Global and confirm the orders in Cainiao OMS or through its own ERP (system integration with Cainiao). Merchants fulfill the orders and send the parcels to the nearest Cainiao overseas consol hub. Cainiao will consolidate parcels from different merchants and ship by air to various China destination gateways like Hangzhou and Guangzhou . Cainiao will declare parcels on behalf of customers to customs as overseas personal purchase so as to enjoy China import VAT exemption.

5. Induction for New Merchants

FTZ Model

Consol Model

A digital link to your business in China

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