Daily CSR
Daily CSR

Daily CSR
Daily news about corporate social responsibility, ethics and sustainability

Cainiao and P&G Partner to Create AI-Powered, Sustainable Supply Chain


Cainiao Group, Alibaba Group’s logistics subsidiary, has entered into a partnership with Procter & Gamble (P&G), a consumer goods firm, to establish an AI-driven supply chain. The goal of the collaboration is to lower transportation expenses and carbon emissions by implementing a fulfillment algorithm that forecasts product demand and consolidates shipments bound for the same destination.

Cainiao is utilizing its technology to offer supply chain solutions and assist P&G in enhancing its fulfillment services, according to Shuai Yong, Vice President of Cainiao Group. Cainiao released its first social responsibility report last year to encourage consumers and business partners to adopt sustainable practices that benefit both people and the environment.

The delivery service has created a comprehensive green logistics system that spans from purchase to delivery, including paperless shipping labels, intelligent route planning, recycling, and solar-powered warehouses. These initiatives are part of Alibaba’s commitment to achieving carbon neutrality and reducing carbon intensity in its supply chain by 50% by 2030.

More businesses are scrutinizing the environmental impact of their supply chains. According to a study by research group CDP, up to 90% of an organization’s greenhouse gas emissions and 50% to 70% of operating costs can be traced back to supply chains. Retailers such as Unilever and Nestle have teamed up with Alibaba to overhaul their supply chain operations.

New Warehouse Cainiao and P&G, which own well-known household brands such as Pampers diapers and Gillette razors, are collaborating on other sustainability initiatives. The two firms recently announced the construction of their first joint front warehouse in Zhejiang, which serves as an intermediary between P&G factories upstream and consumers and retailers downstream.

By employing the newly revealed fulfillment algorithm, the company will be able to accurately forecast demand and swiftly fulfill it using Cainiao’s fleet of cargo vehicles. Yin Chao, Vice President of P&G Greater China Supply Chain Operations, stated that the two companies are laying the groundwork for a strong and enduring partnership.

During recent major shopping events such as 11.11, they have also worked together to reduce waste by using parcels and packaging methods.
To know more on Alibaba’s sustainability efforts, click here,