(Yicai Global) Sept.29 -- BEST Inc., an Alibaba-backed supply chain services provider in China, says it has added over 180,000 square meters of new warehouse space for Cainiao Network, the logistics arm of Alibaba Group Holding, to further enhance the customer experience and to meet the rising demands for the upcoming Single's Day online shopping spree.
The company, which just debut on the New York Stock Exchange last Wednesday through the largest U.S. initial public offerings of a Chinese company this year to date, is opening two new warehouses in Changsha and Nanchang. BEST is also adding new warehouse spaces in Chengdu, Hefei, Taiyuan and Shanghai, the firm said in a press release on Thursday.
Founded by Johnny Chou, a former Greater China president of Google, BEST is the country's leading and fastest-growing smart supply chain service provider. Unlike Cainiao, which collaborates with various logistics partners including BEST to achieve its goal of providing comprehensive, first-class experiences for global consumers, BEST offers one-stop supply chain solutions for both B2B and B2C customers. These services range from warehouse management and order fulfillment to last-mile delivery. According to BEST's listing prospectus, as of June 30 this year, BEST had 305 Cloud OFCs with an aggregate gross floor area of 2.1 million square meters.
Both Alibaba and Cainiao were pre-IPO investors in BEST. As BEST's largest shareholder, Alibaba invested an additional $100 million into BEST's IPO last week.
BEST plans to invest in the development and implementation of new technologies after IPO. In order to improve operational efficiency and service quality, the firm plans to strengthen its technology infrastructure in areas including network and routes optimization, automated sorting lines and cloud-based order fulfillment centers. The company will also introduce new services and provide more integrated and smart supply chain management solutions for the New Retail era.