Alibaba is carrying out this operation through its green logistics arm, Cainiao. More supply chain companies in Asia will focus on green logistics in the coming years.
The outbreak of Coronavirus in China has intensified with a death toll of around 1300. The virus is also rapidly spreading to nearby nations; at least 43,000 cases have been reported worldwide, most of them from China’s Hubei province. The WHO has declared a global health emergency and announced that a vaccine for Coronavirus could be available in 18 months.
Meanwhile, Alibaba, China’s leading e-commerce player, has stepped up to fight the deadly epidemic with green logistics. The company has launched an e-commerce platform to connect medical suppliers worldwide with thousands of Coronavirus victims in China. This special B2B platform will source medical supplies from retailers worldwide and provide the supplies to organizations working towards treating the disease.
Alibaba’s green logistics arm, Cainiao, is ensuring that the necessary drugs and medical equipment are shipped to the needy in the most efficient and eco-friendly way. So far, Cainiao has more than 150 suppliers and has delivered medical supplies from over 15 countries in 18 hospitals across the country.
‘Green Logistics 2020’ is Alibaba’s green e-commerce initiative that aims to implement eco-friendly practices of material recycling, green packaging, effective route planning, and delivery methods throughout its global supply chain. This is a joint mission across several entities within the Alibaba Group, including its online retail stores Tmall, Taobao, Xianyu, as well as its on-demand food delivery site Ele.me.
The demand for sustainable logistics is only increasing, pushing supply chains worldwide to embrace similar ways of doing business. While sustainable development has been a focus for corporates in developed nations, there has been a significant shift toward eco-friendly business practices, especially green logistics in developing countries across Asia.
Companies are taking effective measures in this regard; such as using eco-friendly packaging materials that can be reused and recycled, choosing vehicles that have low carbon emissions, load optimization to ensure efficient vehicle utilization for shipments, and route optimization in order to save travel costs by taking the shortest routes, thereby reducing fuel consumption significantly.
The importance of eco-friendly practices in modern-day supply chains cannot be overlooked. Logistics operations hugely impact the environment in several ways. Implementing sustainable transport and logistics strategies can reduce the environmental impact caused by logistics activities including transportation, warehousing, inventory management, packaging, raw materials handling and forward and reverse shipment services.
2020 and the years to come will see more Asian companies in retail, e-commerce, 3PL and distributor services embrace green logistics. In fact, green logistics might become a key differentiator for enterprises in Asia’s supply chain in the near future.
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