As such, logistic firms such as Cainiao look into plans with a digitalisation facet to reap benefits from the growth, as a majority of warehouses worldwide (80%) today continue to lack core automation capabilities that could impede ideal growth rates. Cainiao has been prioritising its innovation efforts to digitalise the entire value chain for over eight years, with artificial intelligence (AI), cloud, and automation in smart warehouses as a core focus to support the exponential rise in demand and parcel volume, especially during global shopping festivals such as the famed 11.11 sales.
Cainiao Network, Alibaba’s logistic arm, announced the launch of its enterprise smart warehouse plan, in a bid to accelerate digitalisation momentum for the industry and mitigate the Covid-19 pandemic-induced supply chain disruptions, which is expected to last through 2022.
At a global level, the smart warehousing market is expected to grow from US$14.8 billion in 2021 to US$25.4 billion by 2026, nearly doubling in size at a compound annual growth rate (CAGR) of 11.5%.
