Cainiao's new smart warehouse powered by Robots, IoT

Alibaba's logistics unit, Cainiao, has just opened a new robotic warehouse, expanded its Internet of Things (IoT) systems and built out its platform's last-mile reach as it prepares for the annual 11.11 Global Shopping Festival.

Hoping to exceed last year's record of less than three days to deliver 100 million parcels, Cainiao's new smart warehouse in the city of Wuxi in Jiangsu Province, with 700 automated guided vehicles (AGVs), will play a crucial role.

The IoT technology in the warehouse can automatically direct AGVs to drive, load and unload. The system will plan the best routing for the AGVs to avoid collision and intelligently distribute parcels. 50% more orders can be fulfilled by the entire warehouse than that of a traditional one within the same time period.

Preparations this year also reflect the changing demands of logistics in the "New Retail" era. It will be the first time goods ordered during 11.11 are delivered directly from stores to customers during the Festival, sometimes within minutes. Short-distance delivery services will be available in over 280 cities.

"Cainiao is the logistics backbone of Alibaba's New Retail strategy," says Cainiao vice president Ben Wang. "We are providing an online and offline, cross-platform supply-chain solution to merchants and enabling them to cut inventory costs, while increasing operating efficiency, especially around 11.11, the busiest season of the year."

Cainiao Network is a business of Alibaba Group, dedicated to meeting the logistics vision of fulfilling consumer orders within 24 hours in China and within 72 hours anywhere else in the world.