Homeplus’ fulfillment center. (image: Homeplus Co.)
SEOUL, Oct. 27 (Korea Bizwire) — South Korean logistics companies are jumping into the fulfillment market as online transactions continue to increase and quick deliveries are rising as a core component for competitiveness.
The fulfillment process refers to a wide range of services including storing a seller’s products at a local warehouse, selecting and packaging products upon order and delivering products to the customer.
CJ Logistics Corp. began a new service on Monday that stores products for wholesale dealers and retailers at the Yongsan Electronics Market in central Seoul and ships them out as soon as an order is made online.
Previously, sellers at Yongsan had to store their products individually and hail a delivery company to ship out ordered items.
Lotte Global Logistics Co. opened its first fulfillment center in Icheon, Gyeonggi Province in April. It plans to open up a second one on 36,000 square meters of land in Jincheon, North Chungcheong Province next January to expand its service.
Logistics businesses are jumping into the fulfillment industry to compete with Coupang Inc. and other brands with fulfillment hubs of their own.
Companies with a nationwide network of delivery terminals and local delivery workforce have an advantage in the fulfillment industry.
What’s more, they are going the extra mile to introduce cutting-edge technology in order to expedite the picking and packing process and maximize efficiency.
Lotte Global Logistics introduced unmanned transport robots at the Icheon Fulfillment Center. CJ Logistics is using ‘Clova Forecast,’ Naver’s artificial intelligence (AI)-based analytics technology to estimate future demand and control staffing accordingly.
H. M. Kang (hmkang@koreabizwire.com)
