May 17, 2020

Hyundai Logistics sale to streamline ownership of wider group

Automotive
Asian logistics
South Korea
Hyundai
Admin
2 min
Upon completion of the sale, ownership and management structure will be made clear
Follow @SamJermy and @SupplyChainD on Twitter.Hyundai Group is expected to be able to streamline its cyclical ownership structure with the sale of its l...

Follow @SamJermy and @SupplyChainD on Twitter.

 

 

Hyundai Group is expected to be able to streamline its cyclical ownership structure with the sale of its logistics unit to be completed next week, raising market confidence in the cash-strapped conglomerate, corporate sources have said.

Insiders said the money generated by the sale of Hyundai Logistics to Japanese private equity fund Orix Corp will be used by Hyundai chairwoman Hyun Chung-eun and her family to purchase a 100 percent stake in Hyundai Global, the holding company for the entire conglomerate.

Hyundai Logistics will be sold for £352 million (600 billion won), of which 44 billion won will be used to allow the chairwoman to control the holding company.

This transaction and the purchase of shares that is expected to take place on Monday will resolve the "complicated" circular intra-group shareholding system employed by many of South Korea's key conglomerates such as Hyundai.

Under this structure, questions persist about the overall transparency of a business group's operations.

Once the cross-shareholding scheme is completed, the group's ownership will become "straightforward," with Hyun at the top, controlling the management rights of Hyundai Elevator Co. and Hyundai Merchant Marines (HMM) through Hyundai Global.

"The whole process will clarify the ownership structure of the Hyundai Group, that will be beneficial in conducting business down the road," another official at HMM said.

He added that of the 3.3 trillion won in funds that Hyundai Group pledged to raise late last year to deal with its obligations, the conglomerate has generated 2.7 trillion won, or 80 percent of the target.

Besides the logistics company, HMM sold off its LNG operations and certain port facilities while the sale of the group's brokerage firm will generate more cash.

Visit Yonhap News Agency for up-to-date information on Hyundai, here: http://english.yonhapnews.co.kr/news/2014/09/25/0200000000AEN20140925010500320.html?input=www.tweeter.com

Share article

Jun 17, 2021

Cainiao Network Launches Customer-Centric Logistics

Cainiao
Alibaba
Logistics
Tmall618
3 min
Cainiao will focus on the customer experience in Singapore and Malaysia during its Tmall 618 Mid-Year Shopping Festival

As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.

 

Who Is Cainiao? 

According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00. 

 

For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’. 

 

What’s Part of the Upgrade? 

Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments: 

 

  • Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions. 
  • Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture. 
  • Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency. 
  • Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311). 

 

Where is the Company Headed? 

From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’. 

 

Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’. 

 

 

Share article