Cainiao & CP AXTRA expand Thailand retail logistics

Cainiao and CP AXTRA have signed a strategic partnership to expand retail logistics operations in Thailand, extending an existing relationship.

The agreement focuses on supporting CP AXTRA's online and offline retail network through digital supply chain systems, warehouse automation, and overseas warehouse operations across Thailand and other ASEAN markets.

Part of Charoen Pokphand Group, CP AXTRA operates the Makro and Lotus's wholesale and retail brands. The business is active in 10 countries and runs more than 2,700 stores across Thailand and Asia, alongside an online operation.

The companies began working together on digital supply chain technology in 2023. Systems developed through that collaboration have since been introduced across CP AXTRA's business units, lifting pick-and-pack efficiency at Makro stores by 140% and increasing order processing capacity more than fivefold.

That earlier work focused on easing throughput constraints in store operations. The latest phase expands the relationship into forward warehouse and fulfilment services in Thailand, with several projects agreed and multiple Cainiao-operated sites already in use.

Wider push

The partnership is part of CP AXTRA's broader effort to build faster retail fulfilment across its market footprint. It has been upgrading store and warehouse management, transport management, and in-store merchandising systems, while also developing a forward warehouse network and delivery operations.

For Cainiao, the deal supports its push to provide logistics technology and warehouse services to large retail groups beyond its traditional cross-border eCommerce base. It will use its digital supply chain systems, warehouse automation tools, and overseas warehouse network experience to support CP AXTRA's operations.

The language used by both sides suggests an effort to bring rapid fulfilment models seen in China into Southeast Asian retail markets. In practical terms, that means placing goods closer to consumers through forward warehouses and linking those sites with store networks and delivery services.

Retailers in Thailand and neighbouring markets have been investing more heavily in fulfilment infrastructure as online grocery, household goods, and on-demand shopping grow. Faster delivery has become a competitive issue for chains with large store estates, especially those using physical outlets as part of eCommerce fulfilment.

Operational results

The figures disclosed offer a measure of the operational changes already made. A 140% rise in pick-and-pack efficiency at Makro stores points to a significant shift in store-level workflow, while a fivefold increase in order processing capacity suggests systems were redesigned to handle larger order volumes.

No financial terms were disclosed, and no target volumes were given for the warehouse expansion. However, multiple forward warehouse projects have already been agreed in Thailand.

Tanit Chearavanont, Chief Executive Officer of CP AXTRA's Wholesale Business, described the practical effect of the technology after visiting Cainiao's operations.

"I didn't just tour Cainiao's operations-I jumped in. I picked orders, packed boxes, and even got behind the wheel of a delivery truck. What impressed me most is how powerful the systems are, yet how easy they are to use. With Cainiao's automation and digital tools, you can achieve high efficiency from day one. That's exactly what Thailand and the wider ASEAN market need as instant retail takes off. I'm excited to take this partnership to the next level and build a retail-tech and operating model that's made for our region," said Tanit Chearavanont, Chief Executive Officer of CP AXTRA's Wholesale Business.

Wan Lin, Chief Executive Officer of Cainiao, said the company views the relationship as part of a longer-term expansion in the region.

"CP AXTRA is driving a major shift in Thailand's retail landscape, and we're proud to be a long-term partner on that journey. Cainiao combines deep logistics technology R&D with proven global network operations-this is what enables us to help partners move fast, scale reliably, and innovate with confidence. Together with CP AXTRA, we'll accelerate the build-out of forward fulfillment and smart warehousing in Thailand and expand those capabilities across Southeast Asia," said Lin.