OOCL Logistics Supports Warehousing Diversification Strategy of Cainiao P.A.T. Logistics Park

The logistics arm of Alibaba Group Holding Limited, Cainiao, found its anchor tenant to support the warehousing strategy of its logistics park. OOCL, leading global warehousing and supply chain provider, came forward to sign warehousing leases for the same. It would be in charge of managing Cainiao’s clientele, which includes TH True Milk, Vietnam’s leading dairy manufacturer; N Kid, Vietnam’s leading kids’ toy brand; and Kohnan Japan, a Japanese retailer. Considering the growing competitiveness, long-term operations, and growth prospects, Cainiao chose Long An as the first province for setting up its premium warehousing facility in Vietnam. 

Talking about this venture, Son, General Manager of OOCL Logistics Vietnam, said, “As a global company based in Asia, OOCL Logistics is exceptionally positioned to serve both international and domestic customers. Here in Vietnam, we aim to uphold our position as a leader in providing sophisticated transportation, warehousing and distribution services. Utilizing this warehousing space has enabled us to help other businesses operate and manage their storage needs in the country as well as in the region.”

When asked about the same, Xing Zhang, General Manager for Vietnam at Cainiao Smart Hub, said, “Traditionally, typical warehouse locations in southern Vietnam are witnessing increasing saturation, with higher leasing costs. There are limited warehouse suppliers and land space to cater to future expansion needs. These limitations add further stress to the already stretched supply chain in the event that the business needs to pivot or expand in the near future.”

Xing added, “Our new tenants, comprising both international and local leading businesses, have recognised the strategic importance of Long An and how a diverse warehousing strategy will improve their long-term resilience in the post-pandemic era. This is in line with industry trends, as 92 percent of senior global supply chain executives have made physical changes to their supply chain, and we are seeing businesses increasingly shift to a ‘just-in-case’ supply chain management approach to ensure more than sufficient inventory is available in the market. This revised approach brought to light the importance of warehousing solutions that are cost-effective and highly scalable, yet able to fit seamlessly into the broader supply chain flow via superior land, air, and sea connectivity.”

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