CP AXTRA & Cainiao drive digital retail innovation in Southeast Asia
CP AXTRA and Cainiao have announced a partnership aimed at advancing digital retail technology in Thailand and Southeast Asia.
Under this new strategic partnership, CP AXTRA, which operates the Makro and Lotus's retail and wholesale chains, will work with Cainiao, the logistics arm of Alibaba Group, to develop and deploy digital solutions designed to enhance retail operations.
The collaboration plans to adapt technology from China's eCommerce ecosystem, tailoring it to the specific needs of the Thai and wider ASEAN markets.
Operational efficiencies
The partnership has already resulted in the implementation of the iWMS, an in-store pick-and-pack system, across Makro stores. According to both companies, this technology has increased pick-and-pack efficiency by 140%. The Transport Management System, which utilises CP AXTRA's fleet of 4,000 vehicles, has also allowed the company to expand its daily delivery capacity significantly, from 15,000 orders to 100,000 orders.
Alongside these logistics improvements, the teams are working on an AI-driven planogram solution. This aims to optimise merchandising and inventory placement in stores, which is expected to improve convenience by making it easier for both customers and staff to locate products on shelves.
Plans for technology development
CP AXTRA intends to continue enhancing the iWMS, the Transport Management System, and Planogram platforms with the goal of increasing both fulfilment speed and accuracy. The strategic collaboration is also expected to support the company's efforts to integrate its online and offline channels, creating a more seamless omnichannel experience for customers.
The broader objective of the partnership is to establish CP AXTRA as a leading retail technology platform in Southeast Asia. Underpinning this is a focus on collaborating with suppliers and creating a retail ecosystem that is, as the companies describe, "stronger, smarter, and more competitive".
Executive perspectives
Mr. Tanit Chearavanont, Group Chief Wholesale Business Officer of CP AXTRA, said: "Retail today is all about experience, both online and offline. Our partnership with Cainiao, a company under Alibaba Group, is built on true co-creation, combining world-class logistics technology with CP AXTRA's deep retail and wholesale expertise."
"Together, we are developing tech-driven solutions tailored for Thailand and ASEAN, while strengthening our ambition to become Asia's No. 1 retail-tech leader. Importantly, this collaboration marks the foundation of a broader relationship with Alibaba Group as we look to explore new areas of cooperation and innovation that will bring even greater value to Thailand, our partners, and our customers, while enhancing our competitiveness in the international market."
Bi Jianghua, Vice President and General Manager of Logistics Technology at Cainiao Group, provided additional comment:
"We are proud to partner with CP AXTRA on its retail transformation journey. Our joint development teams work side by side to design tailor-made solutions that enhance efficiency and customer satisfaction. This collaboration not only accelerates CP AXTRA's omnichannel capabilities but also expands Cainiao's technology reach across the Southeast Asian market."
Wider retail-tech context
This collaboration is viewed by both parties as part of their long-term commitment to not only technological innovation, but also co-development, talent development, and operational efficiency. Both CP AXTRA and Cainiao position the partnership as a step towards a more interconnected commerce ecosystem that leverages technology to support growth and provide improved service.
Developments resulting from this partnership will continue to be monitored as digital transformation progresses across the retail sector in Southeast Asia.
