Reborn multinational giant

At the beginning of the year, Fang Zhe sent Huizhong, a senior backbone hired from SF Express, to Hangzhou to discuss with Alibaba and Santong Yida and other companies to discuss the establishment of a logistics network company.

Originally, before Huizhong intervened, Alibaba and Santong Yida and other companies had talked about it, but after Fang Zhe’s seven-point cheeky, three-point threat of negotiations, President Ma agreed to let Huizhong join.

With Fang Zhe’s ambition and appetite, it is impossible to be satisfied with a few percent of the participating stocks. Therefore, Santong Yida and other investors such as Yintai Group, Fosun Group and others that have negotiated earlier can only pinch their noses. Negotiate with Ali and Huizhong.

After three months of negotiations, several major investors finally finalized the investment amount and equity agreement for the upcoming Cainiao Network.

Alibaba invested 3.4 billion to account for 34% of the shares, Huizhong Investment 2.6 billion to account for 26% of the shares, Yintai Group invested 2.2 billion to account for 22% of the shares, and Fuchun and Fosun each invested 700 million to account for 7% of the shares.

In addition, the three links and one Datong plus SF Express will each invest 100 million yuan, accounting for 1% of the shares. In total, the major investors have invested a total of 10 billion yuan in Cainiao!

10 billion yuan, this amount has doubled the investment amount agreed upon by the big investors when Huizhong intervened three months ago, and under Huizhong’s bold negotiations, the big investors could only grit their teeth and let them go. Shares, while adding investment amount.

At the Hangzhou International Conference Center, guests and media reporters gathered at the venue. On the podium, the organization took the lead in the establishment of Cainiao Network, who is also the top shareholder of Cainiao Network's largest shareholder Alibaba, and talked freely.

"First of all, on behalf of Alibaba, on behalf of the investors of Cainiao Network and the upcoming Cainiao Network, I welcome all the guests, friends, and media reporters.

Since the first day of establishment, Alibaba has been dealing with express delivery, logistics, Taobao, Tmall, and Chinese e-commerce, from scratch, from a small seedling to today’s towering tree, behind this It is inseparable from the express industry and the contribution of millions of couriers and truck drivers in the logistics industry.

The growth of e-commerce has nurtured the growth of the express delivery and logistics industry, and the growth of the express delivery and logistics industry, in turn, has improved the delivery services and efficiency of e-commerce. The two complement each other and are indispensable.

Today, China's e-commerce industry is already a large market of trillions, and the logistics industry has also achieved a market size of hundreds of billions.

However, while affirming this achievement, we should also see its shortcomings.

More than a decade ago, China only had one state-owned China Post that was engaged in logistics and express delivery services. After the policy was liberalized, many express delivery companies and logistics companies sprang up across the country.

Until today, there are thousands of large and small express delivery companies and logistics companies across the country. Many of them are local logistics companies. The assets of the entire company may add up to a dozen vehicles, and the business scope is basically only Within a city or even a county.

This has also led to the low efficiency of express delivery in our entire logistics industry today, and the lack of information. Many customers complain to us Taobao and Tmall about the slow delivery of express delivery, complaints about damage to express delivery, etc. The problem occurred.

This matter has always caused headaches for me and all Ali people, because I said before that we, Ali, don’t know how to do logistics, and we won’t enter the express industry to grab food with the current express companies.

To this day, I still stick to this sentence.

And this time, the Cainiao network established by several of our investors in cooperation with Santong Yida and SF Express is not a pure, heavy asset logistics company like how many trucks and airplanes are there, but a coordinating and deploying and optimizing express logistics data. s company.

An express delivery is delivered from the seller’s mobile phone until it is finally delivered to the customer. It may circulate thousands of miles, more than a dozen provinces, several transfer stations, and the hands of several people. What Cainiao Network has to do is to transfer The entire process is informatized and standardized, and continuously improves express delivery efficiency and distribution efficiency.

For example, if you want to send a courier from a seller in the southernmost Shenzhen market to a customer in Qiqihar, the northernmost, it must be transferred at least 5 times.

The first time the seller delivered the express to the courier who received the goods, the second time the courier delivered the express to a unified centralized distribution station, and the third time was from the distribution station directly to Qiqihar. Of course, in the current domestic logistics In the system, the third link is difficult to achieve in one step, and there may be several transfers in the middle, but we only count once.

The fourth and fifth time is to repeat the previous two steps in reverse. The fourth step is to unload the goods at the distribution station in Qiqihar area. The fifth and final step is to pick up the goods from the distribution station and deliver them to the customer. in.

There are a total of five steps, which are the most basic five steps for most express delivery. What Cainiao Network has to do is to informationize each link, make statistics and understand the time of express delivery in each link, and the logistics process that it handles. People, etc., and then optimize the efficiency of the entire express circulation based on this centralized information.

For example, we found that in Qiqihar and the entire Northeast region, the number of toothpaste and toothbrushes and other products purchased online every month is about 1 million. Then we can establish a storage system in the Northeast in advance, and periodically Add 500,000 to 700,000 toothpaste and toothbrushes, so that the customer's express delivery distance is directly shortened by one third.

Nowadays, in fact, many merchants on Taobao and Tmall are already using their own warehousing systems to do this, but because Ali does not do logistics warehousing, each merchant is fighting each other, the information is scattered, and the delivery efficiency is very low. What Cainiao Network has to do is to cooperate with several major logistics companies to integrate these resources.

For another example, we found that it only took two hours for the delivery from the warehouse in the northeast to the distribution station in Qiqihar, but after the express arrived at the distribution station, it took two hours for the courier to pick up the goods and start the delivery.

We will understand that the Qiqihar distribution station’s human resources are insufficient and the courier needs to be supplemented, or the courier’s current delivery route is not optimized, and a lot of delivery time is wasted. In this way, we will base on the address information of the courier and the distribution station’s Human resources to optimize the best and best distribution plan.

If things go on like this, with a little bit of optimization and a little bit of improvement, the delivery time of the entire express delivery will continue to shorten.

According to the data estimation model we have made before, through warehousing optimization and distribution optimization, three to five years after the establishment of Cainiao Network, the delivery time of most express delivery will be shortened to less than half of the current one!

Within 10 years, the express delivery will be delivered within 24 hours in most cities above the third tier in China!"

Wow, fierce applause resounded throughout the venue like a tide!