How Does Smart Green Logistics by Alibaba’s Cainiao Create Positive Impact on the Planet and Business?
E-commerce is booming, but it is also creating more waste and emitting more carbon dioxide.
Cainiao, Alibaba's logistics network, has adopted Smart Green Logistics strategy to achieve carbon neutrality.
They have also adopted various technologies including robots and driverless vehicles, smart and eco-friendly packaging, and machine learning to help reduce waste and carbon emission and increase efficiency in logistics.
According to CarbonStop, a carbon consultant and provider of carbon management software that partners with various organizations to calculate, analyze, manage, and report their carbon emissions, courier services account for 29% of carbon emission as a result of e-commerce in China, while packaging accounts for another 18%. The statistics led to Cainiao's initiatives and one of Alibaba's commitments to achieve carbon neutrality and halve their carbon concentrations in the supply chain by 2030.
One example of how Alibaba engaged their 4 million customers in their green logistics initiative is by promoting the recycle of packaging they received during the 11.11 Global Shopping Festival in 2011. Since then, this initiative has reduced carbon emissions by up to 53,000 tons.
To cope with this ongoing challenge, Cainiao has made a move to mitigate the impact by deploying smart warehousing, robots, and driverless vehicles to reduce their ecological footprints. The company has also measured the impact of various human activities on ecosystems by calculating the consumption and waste generated compared to the rate of ecological restoration.
In addition, Cainiao also uses "machine learning and predictive analytics to predict customer needs" with massive data sets. This strategy has allowed merchants to locate their network or warehouse operations to be closer to the end consumers and reduce delivery times. The shorter geographical distance has led to reduced carbon emissions and lower operating costs. It also enables the product bundling to maximize load capacity for maximum efficiency instead of delivering individual items to consumers from a central warehouse which are often located far away.
It is obvious that by adopting various smart technologies, Cainiao has been able to find a smoother and smarter way to manage their logistic operations. Their strategy has not only reduced the use of paper and plastics, but has also ensured that all of their existing businesses will become more sustainable in the long run.
For those interested in the logistics industry, don’t forget to follow the TILOG-LOGISTIX Blogs to get the latest updates and interesting trends for the digital transformation of your business. Logistics technology will become more intelligent at "TILOG-LOGISTIX 2023", the most comprehensive exhibition of logistics service providers and intralogistics technologies and solutions under the theme "Smart and Green Logistics for Sustainable Tomorrow” which will be held on 17-19 August 2023 at BITEC, Bangkok.
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