A Study on the Profit Model of Cainiao Logistics Based on Resource Sharing Pattern

Abstract

The fourth-party logistics (4PL) based on resource sharing pattern is inevitable trend, so the implementation of Cainiao Logistics Plan has aroused the discussion of whether the development of 4PL will make resource sharing pattern popular in logistics industry. The purpose of this study is to investigate the profit model of 4PL represented by the Cainiao. So what kind of role does Cainiao play? Is the profit model sustainable? The research is based on single case study of Cainiao Logistics, which can be considered as a best practice when it comes to 4PL competition. The results identify the main aspects that explain why Cainiao will be efficient. It found that Cainiao not only created new ecosystem of E-commerce, but integrated most resources available in the supply chain.