Alibaba’s Unique Global Supply Chain Solutions
Picture source: http://org-results.com/
INDUSTRIAL ENGINEER – VOLUME 46, NUMBER 10
China’s e-marketplace known as Alibaba has potential to be the largest retail platform in the world by the end of 2015 and might could bigger than Wal-Mart. Alibaba sells product from around the world and it makes Alibaba has control of setting it to be global retail. Many retailers, consumer products companies, wholesaler, distributors and third-party logistics providers (3PL) might get knocked by Alibaba’s approach to U.S. e-commerce.
Originally, Jack Ma as the founder of Alibaba, never thought that it could be a logistics company. But, as time goes by the business has developed and his vision about Alibaba was changed.
Now Alibaba’s difficulties are to confront the four continent which are China, Southeast Asia, globally and so in United States. It plans different ways to handle the supply chain for each difficult. The solutions are not the same for each problem, like for example Alibaba should confront an enormous amount of inadequate carriage and bad storage competence. But, Alibaba already has solved those difficulties. The answer to fix those difficulties is by posses the 49 percent of china smart logistics network or Rookie Network. Rookie Network is a brilliant organization, which it is not related to China’s logistics present-day. Improving the needs of core contentment in China, which are adequate carriage and good storage competence is one of Alibaba’s job.
The development of Alibaba can be seen by its progress over purchase a 10 percent stake in Singpost. Singpost is a company of international shipping goods from Singapore that having a very-good service, particularly in Asia Pacific. Alibaba is hoping to build infrastructure and logistics international working with Singpost. By cooperating with Singpost, Alibaba e-commerce hopes to control markets in Southeast Asia.
As a company developing rapidly, Alibaba must use new method in the system. The development of Alibaba it can also be seen by buying 39 percent of the shares of ShopRunner. ShopRunner is a logistics delivery company derived from U.S. That way, process of shipping of the U.S. to China will continued by using Rookie Network to customers. The purpose of Alibaba do this is so that all goods delivery up to good condition in China.
Alibaba U.S. strategy is successful in change, as it would give a huge impact to the development of the company. Although is not company from U.S., but most of the problem can be handled. Thus, Alibaba has become one of the world’s biggest trading and e-commerce online for a number of domestic and global trading in China.
- Audrey Rebecca (1601280000)
- Ria Audina Stefani (1601269396)
- Samira Hasyim (1601274061)