1、Dr.Max Shen Chief Scientist of E.T.Lab System Planning and Optimization for Cainiao Network System Planning and Optimization for Cainiao Network Mission of Cainiao Network Technical Roadmap Key to Success E.T.Logistics.Lab.Outline Cainiaos mission is to deliver anywhere in China within 24 hours and

2、anywhere worldwide in 3 days.2015 Chinas daily package volume 2015 Chinas daily package volume 57 million57 million Chinas estimated daily package volume in 2020 Chinas estimated daily package volume in 2020 145 million 145 million Chinas total number of addresses Chinas total number of addresses 1.

3、58 billion 1.58 billion Chinas new addresses added per day Chinas new addresses added per day 3.45 million 3.45 million Chinas logistics system Complexity Chinas logistics system Complexity Is that possible for Cainiao to deliver anywhere in China within 24 hours?Is that possible for Cainiao to deli

4、ver anywhere in China within 24 hours?Mooncake example Cainiaos mission is achievable but maybe COSTLY if not designed properly.Buying mooncake from Xuanwei,Yunnan Province(2573km)Buying mooncake from Xuanwei,Yunnan Province(2573km)Truck Options 31.5h Truck Options 31.5h Preparation in the warehouse

5、 2h Preparation in the warehouse 2h Xuanwei to Beijing 28h Xuanwei to Beijing 28h Beijing to My home 1.5h Beijing to My home 1.5h Mooncake example Cainiaos mission is achievable but maybe COSTLY if not designed properly.Airplane Options 12h Airplane Options 12h Xuanwei to Kumming 3h Xuanwei to Kummi

6、ng 3h Kunming to Beijing 3.5h Kunming to Beijing 3.5h Beijing to My home 1.5h Beijing to My home 1.5h Preparation in the warehouse 2h Preparation in the warehouse 2h Operations at the Airport 2h Operations at the Airport 2h However However-What if the flight is delayed?-What if there is a traffic ja

7、m?-What if the Kunming-Beijing Flight is not operated every day?-What if capacity is not enough on the airplane?-Buying mooncake from Xuanwei,Yunnan Province(2573km)Buying mooncake from Xuanwei,Yunnan Province(2573km)Buying mooncake from Xuanwei Other Options Other Options Kunming warehouse(9h)Prepa

8、ration in the warehouse 2h Beijing to My home 1.5h Kunming to Beijing 3.5h Beijing to My home 1.5h Preparation in the warehouse 2h Operations at the Airport 2h Other Options Beijing warehouse(3.5h)Buying mooncake from Xuanwei Issues How do we know whether we should set-up a warehouse in Kunming or B

9、eijing?How do we know whether we should store mooncake in Beijing warehouse?Do we need to store moon cake in Beijing warehouse all year long?Can we achieve the Cainiaos mission with trucks only?How many warehouses do we need?Where do we locate them?What do we store in each of the warehouse for each

10、period/season?Can we know the demand and prepare for the orders before they are placed?Cainiaos mission of 3-day cross-border delivery is extremely difficult,but is highly possible to be achieved.Complexity in cross-border logistics Complexity in cross-border logistics The delivery distance is much

11、longer than domestic logistics,usually taking 12 days12 days by air.Foreign logistics networks are less reliable in warehousing,distribution,and last-mile delivery,making the service level out of controlout of control.The process of customs declaration and clearance is complex and dynamic,which coul

12、d take a couple of days a couple of days to finish.Customer demand is dispersedly located,increasing the level of operational costsoperational costs.Cainiaos mission of 3-day cross-border delivery is extremely difficult,but is highly possible to be achieved.Cainiaos best practice for now Cainiaos be

13、st practice for now China to Europe 5 days China to Russia 3.8 days China to USA 3 days Cainiaos Technical Roadmap Design and PlanningDesign and Planning Facility location Service area assignment System coordination OperationsOperations Order picking Crew scheduling Transportation ManagementManageme

14、nt Warehouse management Device management Data management Big Data Optimization High-Tech Cainiaos MissionCainiaos Mission Key to Success Big Data Data Reliable data source Reliable data source User data Transaction data Data mining with Five-level address database Efficient data management Efficien

15、t data management Aliyun Cloud computing Connecting China with the World Connecting Rural with Urban areas Connecting Long-haul to Last-mille deliveries Key to Success Big Data Know more about Customers Know more about Customers-Customer behavior and Service requirements-Demand patterns Know more ab

16、out OperationsKnow more about Operations -Supply chain visibility(Safety/Quality/Trackability)-Failure analysis Know more about ManagementKnow more about Management -Performance measures-Bottleneck improvement(Facility location/Distribution systems)Largest E-Shopping Day in China Double 11(2015)120M

17、 120M Order number Order number 467M 467M Parcel number Parcel number 91.217B 91.217B Transaction value Transaction value(RMB)(RMB)Optimization Framework Inbound Logistics StorageStorage Layout of the warehouse Storage assignment Inventory replenishment Material HandlingMaterial Handling Operator mo

18、ves v.s.Shelf moves Tool selection Scheduling and Resource allocation Order-PickingOrder-Picking Order combination/split Route selection Congestion reduction Cainiaos Inbound Optimization Packages Real time replenishment recommendation 3D Bin-packing algorithm Stowing recommendation algorithm Pick r

19、oute optimization Outbound Logistics Optimization CouriersCouriers Self-pickup stationsSelf-pickup stations Parcel Locker Parcel Locker Long-haul TransportationLong-haul Transportation Cost and Efficiency Vehicle routing How to track Last-mile DeliveryLast-mile Delivery We deliver v.s.Customer picks

20、 Multi-tier distribution network Preparations in advance Cainiaos Optimization Engine Ali Optimizer Mathematical Mathematical ModelModel Objective Quantified and Measurable Constraints Translation of physical relations Data Sufficient and Accurate ImplementationImplementation Algorithm Efficient and

21、 Effective Robustness Variability of Data Delivery format Readable and Implementable SustainabilitySustainability People Experience and Expertise Process Continuous improvement Generalization Across platforms Cainiaos Optimization Engine Ali Optimizer High performance,customized for logistics.Ecosys

22、tem for intelligent service,enabling partners Logistics optimization platform,generating more business value First commercial optimization engine in China,world leading technology Key Features of Ali Optimizer Key Features of Ali Optimizer Lower CostLower Cost Higher Higher EfficiencyEfficiency Key

23、to Success High Technologies Automaon Systems Internet of Things High-Speed Compung As Cainiaos innovation center,E.T.Logistics Lab has kept up with the cutting-edge technologies,enabled by a competitive team with experience and expertise.Labs Mission/Goal Labs Mission/Goal An Innovation Center Who

24、are they?Organization Organization Data Science Operations Research Electronic Engineering and Computer Science ET Labs Leading Technology Little G Package delivery service Seamless integration with TMS Order and Scheduling Precise positioning and optimal route planning the three-dimensional motion

25、planning Implement RFID tracking Intelligent solution for last mile delivery Intelligent solution for last mile delivery ET Labs Leading Technology Little G Perception and Autonomous Intelligent Recognition SLAM，Navigation Motion planning and control Multi-robot collaboration Key technology Key tech

26、nology ET Labs Leading Technology UAV Clustered goods to person robot Low cost and high reliability intelligent hardware terminal Intelligent Cluster Scheduling Algorithm Scaling,storage compatibility Warehouse AGV Warehouse AGV ET Labs Leading Technology UAV Adapt to rich categories in e-commerce Stable and efficient robot sensing control algorithm Fetching Robots Fetching Robots