Focus

CJ Logistics Further Widens the Technological Gap with Its Competition through the Establishment of a Delivery Classification System Dedicated to Small-Sized Parcels

2021.08.20

Following the adoption of wheel sorters, the delivery industry's first state-of-the-art ITS (intelligent scanners), and improvements to its Gonjiam hub terminal, CJ Logistics has secured structural competitiveness and super-gap core competencies with its Icheon MP hub terminal, changing the paradigm of the delivery industry.

Fitted with an assortment of high-tech equipment, such as metering conveyors and DP sorters, CJ Logistics’ Icheon MP hub terminal has processed 200 million parcels as of the end of July

CJ Logistics’ Icheon MP Terminal

▶ CJ Logistics’ Icheon MP Terminal

In September 2020, CJ Logistics built its state-of-the-art Icheon MP Hub Terminal, the first of its kind in the delivery industry, which exclusively classifies and relays small-sized parcels, and has seen the company process more than 200 million parcels through the terminal as of the end of July this year.

CJ Logistics’ Icheon MP hub terminal is a hub terminal dedicated to small-sized parcels, which are gathered from around South Korea and sorted by region. The terminal first opened its doors with a pilot operation in September 2020, with an aim to efficiently handle an ever-increasing volume of small-sized parcels due to the growth of the e-commerce market. The terminal was built in Icheon, Gyeonggi-do so as to establish a network to handle parcels from around South Korea, with its land area alone being about 28,403 square meters (8,592 pyeong).

CJ Logistics runs its Icheon MP hub terminal in connection with 44 MPs, sorters dedicated to small-sized parcels installed at its sub-terminals across South Korea. Products ordered by customers are first gathered at the warehouses of the relevant shopping malls (shippers) and then transferred in groups to sub-terminals in each region. Among the parcels, only small-sized parcels with the same destination are paired up in pouches — in groups of 20 — through MPs and then sent to CJ Logistics’ Icheon MP hub terminal. Parcels that have arrived in pouches at CJ Logistics’ Icheon MP hub terminal are then sorted through automatic sorters and subsequently sent to sub-terminals near their delivery destinations.

Delivery process at CJ Logistics’ Icheon MP hub terminal

▶ Delivery process at CJ Logistics’ Icheon MP hub terminal

CJ Logistics’ MP Hub terminal is fitted with state-of-the-art equipment capable of efficiently handling small-sized parcels bundled in pouches. Of particular note is that the terminal is equipped not only with MP hub scanners, which are fitted with six cameras to recognize waybills attached to pouches that vary in shape but also with metering conveyors that maintain a uniform distance between pouches. Moreover, the terminal is the first in South Korea to have adopted “DP (direct push) sorters,” which automatically sort bulky and heavy pouches by destination.

Small-sized parcels account for about 90% of CJ Logistics’ total parcel delivery volume. CJ Logistics’ Icheon MP hub terminal, equipped with state-of-the-art automation facilities, can handle more than 2 million of those small-sized parcels a day, thereby reducing costs as well as increasing operational efficiency.

CJ Logistics’ sorting systems dedicated to small-sized parcels, such as its Icheon MP hub terminal and MPs, were built using its existing sub-terminal infrastructure. Those systems are receiving a lot of attention as innovative systems in the industry because they can significantly increase the delivery throughput relative to investment costs.

An official from CJ Logistics said, “By continuing to be the first in the industry to adopt cutting-edge automation facilities, such as our Icheon MP hub terminal and MPs, we handle ever-increasing volumes of small-sized parcels efficiently. We will lead a paradigm shift in the parcel delivery industry through continuous investment and securing super-gap capabilities.”