CJ Logistics agrees to partnership with Alibaba

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CJ Logistics agrees to partnership with Alibaba

CJ Logistics is teaming up with Cainiao, a logistics subsidiary of China’s e-commerce giant Alibaba, to boost online trade between Korea and China.

According to CJ Logistics on Wednesday, it inked a memorandum of understanding with Cainiao to expand the supply chain for products delivered from Korea to China. Better logistics is expected to boost online commerce between the two countries, CJ said.

On the same day, Cainiao opened its global fulfillment center in Gimpo, Gyeonggi.

Cainiao’s 11,570-square-meter (124,500-square-foot) center will process Korean goods purchased by Chinese customers. It will handle the entire logistics process, from inventory management and packaging to customs clearance and air transport. The fulfillment center in Gimpo is the fifth that the company has opened globally.

The center will be managed by CJ Logistics and has been fitted with the Korean company’s technology.

The so-called intelligence scanner system, which can track products’ weight and volume by scanning them while they move rapidly on a conveyer belt, and smart packaging system, which automates the packaging process depending on products’ volume, are two of CJ’s systems that will be used in the center.

The new center enables Korean exporters to more conveniently send products to China for Alibaba customers. Chinese customers will also experience a smoother delivery process with tracking available through the fulfillment center.

“The new Global Fulfillment Center is a meaningful expansion of Cainiao’s global logistics network,” said Guan Xiaodong, general manager of Cainiao Global. “We expect [the partnership] will help Korean exporters offer their products to Chinese customers in a timely manner.”

According to CJ Logistics, direct purchases of Korean goods through China’s online platform amounted to roughly 90 billion won last year and the amount is expected to expand to 190 billion won ($169 million) by 2020.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]

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