Cainiao Smart Logistics Network, the logistics arm of Alibaba Group Holding Limited, announced it has entered a partnership MOU agreement with Korea SMEs and Startups Agency (KOSME) to officially serve as the logistics partner for SME export business South Korea. The MOU aims to promote bilateral trade and foster multi-faceted collaboration to spearhead the expansion and development of the e-Commerce industry between South Korea and China. This is a major milestone for Cainiao as it extends its logistics services to merchants outside the Alibaba ecosystem in South Korea to make it easier for them to tap into the overseas markets.
In line with the MOU, Cainiao will be KOSME’s official logistics partner for their logistics subsidy program, which will provide up to 15 million won in subsidies per company to cover approximately 70 per cent of their export expenses, such as e-Commerce logistics. The objective is to help SMEs tide over this uncertain economic situation by accessing the Chinese market.
Last year, the program has facilitated the logistics for over 3.7 million online exports and reduced SMEs’ export logistics cost by an average of 48 percent or up to 82 per cent when benchmarked against Express Mail Service (EMS)’ market rate (across 10 major countries).
As part of the agreement, SMEs will be able to leverage Cainiao’s one-stop logistics management system, which provides real-time insights and support across warehouse inventory, order fulfilment, delivery status, billing, and any forms of anomalies for immediate rectification.
“SMEs are the growth engines of the economy. We are honoured to be selected as KOSME’s official logistics partner to support millions of South Korean SMEs in their expansion into new markets to establish business resilience. As a trusted partner to KOSME and Korean SMEs, our goal is to make cross-border logistics as seamless as possible by taking care of the digitalized full-chain, including order fulfilment, local and overseas B2B and B2C warehousing, international shipping, customs clearance as well as first and last-mile logistics. This will offer SMEs a greater peace of mind to better focus on their sales and growth strategies,” said James Zhao, General Manager for Global Supply Chain, Cainiao Network.
This news comes after Cainiao’s official launch in South Korea last year to provide end-to-end logistics services for businesses’ import and export needs. This includes over 15,000 square meters of warehouse space in South Korea, sea and air freight – six cargo ships and six cargo planes weekly, and various logistics partnerships that provide first and last-mile delivery and facilitate customs clearance in South Korea and China. This full-chain service has brought about up to 50 percent improvement in shipping efficiency, reducing total shipping time from 10 to 13 days to just 5 to 7 days.
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