Focus

We Achieved a Warehousing Revolution Based on Asia’s Largest Courier Service Infrastructure.

2020.05.08

- The fulfillment service was launched at the Mega-Hub e-Fulfillment Center in Gonjiam, which is capable of handling 1.7 million boxes per day, initiating a new age in e-commerce logistics innovation.

- LG Household & Health Care products will be showcased on Naver’s Brand Store from the 20th, and orders placed by midnight will be delivered the following day.

- A logistics specialist selects, packages, and delivers products to reduce the time and costs and maximize customer convenience.

- Asia’s largest courier hub offering fulfillment will provide world-class services.

We Achieved a Warehousing Revolution Based on Asia’s Largest Courier Service Infrastructure.

As CJ Logistics’ fulfillment service is launched in full scale, it is expected to lead to innovation in e-commerce logistics and bring change to the shopping patterns of consumers by saving them even more time.

CJ Logistics announced on the 19th that it concluded a fulfillment agreement with LG Household & Health Care and initiated the fulfillment service to deliver products of LG Household & Health Care sold at Naver’s Brand Store to consumers within 24 hours.

CJ Logistics’ fulfillment service dedicated to e-commerce is officially named CJ Logistics e-Fulfillment. When orders are placed for LG Household & Health Care products at Naver’s Brand Store, the ordered products are transported from CJ Logistics’ Mega-Hub e-Fulfillment Center located in Gonjiam to the hub terminal, sorted by the automatic cargo sorting system, and delivered to consumers across the nation.

The most notable difference from existing online shopping is that the time allowed for order placement and next-day delivery has been drastically extended. With most online shopping malls, consumers are required to place orders by 15:00 for next-day delivery. Orders placed after this time are delivered two days later.

Existing e-Commerce Logistics System

CJ Logistics e-Fulfillment enables consumers to receive products for orders placed up until midnight the night before. CJ Logistics completed the automation of over 170 regional terminals across the country as well as the hub terminal and achieved 100% automatic sorting throughout the entire process. As a result, our couriers start deliveries as early as 10:00. If an order is placed at midnight, the consumer can receive the product within 12 hours at the earliest and 24 hours at the latest from the time of order.

This was made possible due to CJ Logistics’ Mega-Hub e-Fulfillment Center in Gonjiam, which was designed to offer an optimized fulfillment service. The total floor area from the second through fourth floors of the center spans 115,500m2, equivalent to 16 regulation soccer fields, while the hub terminal set up on the first floor and the first basement floor is equipped with a state-of-the-art automatic cargo sorting system that can sort and send 1.7 million boxes per day.

Products are warehoused at the fulfillment center in advance and sent to the hub terminal as soon as order placement is confirmed for delivery to consumers across the country. As the steps of picking up products at the logistics centers of distributors and manufacturers and moving them to the hub terminal are omitted, orders can be received over an extended period of time.

CJ Logistics’ e-Fulfillment is expected to bring dramatic change to consumers’ lifestyles. As they can now shop online until midnight, they save even more time. Orders only have to be placed by midnight to have products delivered the following day.

Sellers can receive orders for an extended period of time, thereby improving customer satisfaction, while any hassle related to the logistics process is reduced as CJ Logistics handles the entire process from inventory management to delivery. The streamlined logistics process also leads to enhanced product safety. The Mega-Hub e-Fulfillment Center in Gonjiam boasts the large-scale area of three floors and ensures expandability to flexibly accommodate the surging needs of sellers at times of major discount events.

As CJ Logistics, the number one company in the courier industry, has initiated the service for large customers in full scale, fulfillment services are anticipated to emerge as a major trend in Korea’s e-commerce logistics. According to eBest Investment & Securities, Korea’s fulfillment market will be worth KRW 1.88 trillion this year and is expected to grow to KRW 2.3 trillion by 2022.

Fulfillment has already become a global trend. Global e-commerce companies such as Amazon and Alibaba and multinational logistics companies such as DHL, FEDEX, and UPS succeeded in offering differentiated e-commerce logistics through their fulfillment services. Amazon’s FBA (Fulfillment By Amazon) is one of the most well-known fulfillment service brands, and other multinational logistics companies are also equipped with a separate business unit in charge of operating branded fulfillment services such as DHL Fulfillment and UPS eFulfillment.

A CJ Logistics staff member said, “With the continued growth and volume increase of the e-commerce market, we projected the success of the fulfillment service and invested in a preemptive manner to build the Meg-Hub Fulfillment Center in Gonjiam. We plan to expand our related services on a continual basis to ensure consumer convenience and bolster e-commerce.”

*About the Concept of Fulfillment

Fulfillment refers to the entire process through which a logistics company collects orders from consumers and selects, packages, and delivers the ordered products. E-commerce fulfillment, in particular, is a comprehensive logistics service optimized for e-commerce. Sellers only have to warehouse their products at the logistics center, and the entire logistics process from inventory management to delivery is handled automatically. Millions of products in stock must be managed in real time, selected, packaged, and delivered door-to-door, thus requiring advanced logistics information technology and operating expertise.