China e-commerce giant spearheads new logistics network

By Freddie Pierce
Follow @Ella_Copeland The Alibaba Group, which runs Chinas largest e-commerce platforms, has partnered with a number of companies to invest the first 1...

The Alibaba Group, which runs China’s largest e-commerce platforms, has partnered with a number of companies to invest the first 100 billion Yuan ($16.08 billion) into a project to build a countrywide logistics network, according to a local newspaper reporter.

According to reports by a Beijing News, the 'China Smart Logistics Network', will be capable of delivering products across China within 24 hours, with other reports claiming that the network will be  support up to ten trillion Yuan ($1.6 trillion) worth of transactions a year.

Reports suggest that the Alibaba group is spearheading the project in co-operation with industry partners, which comprises of private equity firms, express companies and a bank. The project will be chaired by Jack Ma, founder and chairman of Alibaba Group, with the aim to complete the network within eight to ten years.

Alibaba have yet to formally confirm or deny the reports, however a spokesperson released the following statment by email to Reuters: "…the logistics is a key industry bottleneck for e-commerce growth in China and that everyone involved in this sector needs to work together to drive rapid development.”

Alibaba, the owner of China’s largest e-commerce platforms by transaction volume; Taobao Marketplace and Taobao Mai, offer platforms to sell everything from imported almonds to precious jade from millions of virtual storefronts. The company exceeded 1 trillion Yuan  in revenue for the first time in January-November 2012. 


Featured Articles

Accenture supply heads probe value chain resilience

Accenture's Maria Rey-Marston & Stephane Crosnier say best way to achieve supply resilience is real-time dynamic visibility, with people at its heart

Weekly news round-up across supply, logistics & procurement

CIPS chief in supply cash-flow warning; Women do better in large firms - Gartner; Accenture Euro chief's Ukraine advice; Dell supply head's green goals

UST webinar on managing supply risk available on-demand

Global CPO David Loseby and UST's Jonathan Colehower share insight on using technology, both to mitigate supply chain risk and to gain supply visibility

Global land, sea and air logistics news round-up


Comfort zones the enemy of sustainability - CIPS economist


Women in supply fare better in large firms - Gartner report

Digital Supply Chain