{"id":1157,"date":"2016-07-06T11:51:52","date_gmt":"2016-07-06T09:51:52","guid":{"rendered":"http:\/\/en.advancedfleetmanagementconsulting.com\/?p=1157"},"modified":"2016-07-06T11:51:52","modified_gmt":"2016-07-06T09:51:52","slug":"how-logistics-contributes-to-alibabas-outstanding-success","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2016\/07\/06\/how-logistics-contributes-to-alibabas-outstanding-success\/","title":{"rendered":"How logistics contributes to Alibaba\u2019s outstanding success"},"content":{"rendered":"

\"How-logistics-contributes-to-Alibabas-outstanding-success-1\"<\/a><\/p>\n

Last November -a month of global sales- Chinese ecommerce giant Alibaba<\/a><\/strong><\/span> raised as the unquestionable conqueror. In just one day \u2013the Single\u2019s Day annual event- they hit a record sale of US$ 14 billion, more than Cyber Monday and Black Friday combined<\/a><\/strong><\/span>.<\/p>\n

Consultant and experts agree that the secret of Alibaba\u2019s success lies in its business model, because the company is able to provide a customized sales experience for every buyer, irregardless if\u00a0they are in China, US, Africa or South America. In fact, Alibaba\u2019s founder, Jack Ma, stands<\/a><\/span><\/strong> that his company puts \u201ccustomers first, employees second, and shareholders third,\u201d and he also aims towards long-term value, instead of short-term profits.<\/p>\n

Our proposition is simple: we want to help small businesses grow by solving their problems through Internet technology. We fight for the little guy. Since our founding in 1999, we have helped millions of small businesses to achieve a brighter future.\u201d<\/em><\/p>\n

Jack Ma, Alibaba\u2019s founder<\/a><\/em><\/span><\/strong><\/p>\n

According to the Harvard Business School<\/a><\/span><\/strong>, \u201cAlibaba dominates China’s Internet and logistics<\/a><\/strong><\/span> space with over 600 million subscribers, and nearly a quarter trillion dollars of annual transactions. A combination of Amazon<\/a><\/strong><\/span> and eBay<\/a><\/strong><\/span>, it holds an 80 percent share of the e-commerce market in the world’s second largest economy.\u201d<\/p>\n

Also, in the last few years, its growth rate has been mostly impressive. \u201cIts net income for 2013 was four times more than in 2012. Its products and services lie at the core of an extraordinary transformation of China today from a low-cost, export-driven economy to one that is driven by consumers.\u201d Harvard<\/a><\/strong><\/span> adds.<\/p>\n

\"Portada1\"<\/a><\/p>\n

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Desc\u00e1rgate gratuitamente este completo y pr\u00e1ctico e-book, que desarrolla como gestionar cualquier flota de veh\u00edculos a trav\u00e9s de todas sus actividades y factores clave.<\/p>\n

Descarga\u00a0<\/a><\/strong><\/span><\/p>\n<\/div>\n

<\/h4>\n

The supply chain<\/a><\/span> model<\/strong><\/p>\n

As with\u00a0any ecommerce model, Alibaba\u2019s logistics<\/a><\/strong><\/span> plays an important role in their business strategy, and it significantly contributes to Ma\u00b4s company success. It started in 1999 as a platform for B2B businesses, to connect eastern suppliers with western buyers.<\/p>\n

On one side, Alibaba offers online platforms (Ali Express.com<\/a><\/strong><\/span>, Taobao.com<\/a><\/strong><\/span>, and Tmall.com) where retail buyers and sellers can meet each other in the same space to do business and have the chance to enter in new markets, and also are supported with business intelligence, SEO and keyword management in order to maximize their possibilities to be reached by buyers or sellers.<\/p>\n

On the other hand, Ma\u2019s company also offers a big online platform (Alibaba.com) for wholesale buyers and sellers. As in\u00a0retail, they get business intelligence benefits due to the fact that Alibaba \u201cruns marketplaces and has a huge customer base, the amount of business that flows over its sites dwarfs that of other e-commerce companies,\u201d Wall Street Journal<\/a><\/strong><\/span> explains.<\/p>\n

\u201cAlibaba\u2019s meteoric rise can be attributed to its focus on growing its enormous supplier base, which targets Chinese and other Asian sellers that Amazon and other marketplaces don\u2019t,\u201d ecommerce company Handshake<\/a><\/strong><\/span> stands.<\/p>\n

\u201cIn other words, Alibaba\u2019s B2B marketplace \u2013Handshake<\/a> <\/strong><\/span>adds- has acted like a gateway to China and the growing economy\u2019s enormous capacity to produce goods that the world wants.\u201d<\/p>\n

So, what role does\u00a0logistics and supply chain management<\/a><\/span> play in this successful business model?<\/strong><\/p>\n

\u00a0The key is integration at the service of the client. Firstly, Alibaba offers the possibility to search, find, negotiate with the manufacturer, close a business deal, and agree payment options.<\/p>\n

But also, market players can agree on delivery options, negotiate time and methods, choose shipping rates, and even program deliveries. All of it, at very convenient prices (probably due to the huge amount of deliveries and shipping that they do everyday).<\/p>\n

In addition, Alibaba \u201cdoesn\u2019t own any of its own assets for lastmile delivery or even fulfillment; they are an online virtual e-commerce platform that tenders orders, more like an eBay. The company will either sell consignment inventory provided by vendors, or goods will be shipped from a vendor warehouse or location. Alibaba\u2019s role is essentially to coordinate track-and-trace logistics, giving coordinate information for delivery, tendering the funders and clearing it\u2014much like what Amazon does when they sell goods for a third party,\u201d Industry Week<\/a> <\/span><\/strong>explains.<\/p>\n

Some Alibaba Key numbers:<\/strong><\/p>\n

– US$ 25 billion<\/strong> was the Alibaba\u2019s global IPO in 2015, the world\u2019s largest IPO ever.<\/p>\n

– 231 million<\/strong> active buyers.<\/p>\n

– 11.3 billion<\/strong> orders flowed through the company\u00b4s ecommerce platform in 2013.<\/p>\n

– 49 purchases<\/strong> done an average by each buyer every\u00a0year.<\/p>\n

-Alibaba has B2B and B2C suppliers In more than 20 countries<\/strong>.<\/p>\n

(Sources: https:\/\/www.handshake.com\/blog\/alibaba-b2b-wholesale\/<\/strong><\/span>)<\/a><\/p>\n

How do you evaluate the shipping experience that Alibaba.com provides? Do you think that its supply chain management <\/strong><\/span>is setting a course for next ecommerce businesses? Share your opinion.<\/p>\n

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\"FranciscaWriten by\u00a0Francisca Howard<\/h4>\n<\/div>\n<\/div>\n
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Francisca is a commercial engineer by University Adolfo Iba\u00f1ez. She worked 10 years in the retail industry and the last few months she has been working as a business developer for\u00a0Drivin<\/a><\/strong><\/span>, a\u00a0SaaS solution that allows to distribution companies to reduce its transport costs as well as increase the service quality of their final clients.<\/p>\n<\/div>\n<\/div>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Last November -a month of global sales- Chinese ecommerce giant Alibaba raised as the unquestionable conqueror. In just one day \u2013the Single\u2019s Day annual event- they hit a record sale of US$ 14 billion, more than Cyber Monday and Black Friday combined. Consultant and experts agree that the secret of Alibaba\u2019s success lies in its…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[32,5,50],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/1157"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=1157"}],"version-history":[{"count":0,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/1157\/revisions"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=1157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=1157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=1157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}