Cainiao Introduces Tailored Solutions to Enhance FMCG Supply Chains

Cainiao Group, the logistics arm of Alibaba Group Holding Limited, has unveiled a suite of customized services aimed at strengthening supply chain capabilities for the fast-moving consumer goods (FMCG) sector.

The newly introduced offerings include a goods labelling service and a consolidated B2B inventory and supplier management service. Leading Chinese FMCG brand Bestore is the inaugural partner to implement Cainiao’s solutions in its global supply chain operations.

Labeling and packaging FMCG products for global export present unique challenges, involving compliance with local laws and regulations and meeting the preferences of local consumers. These challenges extend to requirements such as mandatory packaging information, encompassing ingredients, allergens, nutritional facts, country of origin, expiration dates, warnings, instructions, and more.

To assist brands in addressing these intricacies, Cainiao offers comprehensive support for labeling FMCG goods, spanning design, production, and label distribution.

Operating within mainland China, the service reduces consolidation and value-added service costs by ten percent, allowing partners to extend these cost savings to their customers.

Cainiao complements its services with expertise in streamlining inventory and supplier management for FMCG companies. Suppliers can route their goods to Cainiao’s warehouse for consolidation and labelling, effectively aggregating logistics requirements for subsequent supply chain stages such as distribution, first mile, customs clearance, and line haul shipping for exports to destination countries.

This approach enhances shipping efficiency and lowers costs by reducing occurrences of Less than Container Load (LCL) by up to 25 percent.

Cainiao is set to launch these offerings in collaboration with Bestore, a prominent premium Chinese FMCG brand with a presence in over 30 international markets. The partnership will provide end-to-end supply chain services for Bestore’s food products, supporting their global expansion efforts and bringing Chinese food products to a broader global audience.

Ricky Xue, general manager of Southeast Asia at Cainiao Group, noted, “Our offerings are specially tailored for FMCG companies to help them navigate complex local regulations, inventory and supplier management, while achieving cost savings. In the face of rising commodity prices, these solutions aim to streamline, optimize, and innovate to reduce costs and maintain price competitiveness across brands and products.”

The post Cainiao Introduces Tailored Solutions to Enhance FMCG Supply Chains first appeared on Logistics Asia.

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