[News Article] CJ Logistics aims to operate global hub for cross-border e-commerce
CJ Logistics aims to
operate global hub for cross-border e-commerceLee Yoon-seo, The
Korea Herald - At CJ Logistics' Global Distribution Center, a total of 140 red,
box-shaped robots with four wheels zoom across rows of stacked-up bins. The
robot then drops down wires and hoists up a bin filled with goods. Carrying the bin,
the robot scurries along the metal railings, transporting the bin to the
packaging station, where an employee selects a set number of items from the bin
to pack into a box for delivery. The robot then bustles back again and heads
for another bin, repeating the procedure. The process is a
part of the logistics firm’s automated logistics system, dubbed “Auto-Store,”
which aims to maximize efficiency by having the machines bring the goods to the
employees, instead of having human workers search for the items themselves. "Traditionally,
distribution centers stored items on fixed steel shelves. However, by piling
the bins of items on top of each other, we learned we could increase storage
efficiency by four times," said Lee Kyung-jin, CJ Logistics’ head of cross-border
e-commerce business, during a media tour held at the distribution center
Thursday. "Auto-Store is
currently responsible for transporting some 10,000 boxes daily, and is in its
final testing phase. We estimate that the system will be launched for full
operation in December and that it will largely buoy our productivity," he
said. In a separate part
of the facility, boxes marked with barcodes are constantly being scanned as
they are transported on conveyor belts. Based on data stored
in the barcodes, the boxes are automatically moved across the black belts until
they come to a stop in front of an employee, who fills the boxes up with goods. The process is a
part of another one of CJ Logistics' automated logistics system, named the
“Quick Picking System.” "Instead of the
person-to-goods method, which obligates workers to find the goods, we are
implementing a method which allows items to find the workers on their
own," said Lee. "Such a system
is maximizing productivity and work convenience. By simultaneously operating
the QPS and Auto-Store, we expect to improve the overall operational efficiency
by 1.5 times," he said. CJ Logistics'
invention of the automated logistics processes came as the firm aimed to ramp
up its capabilities for making cross-border deliveries, the firm said. "CJ Logistics
designated its new future core growth engine as the cross border e-commerce
business. The CBE business is growing at a fast rate globally, especially in
the Asian region," said Min Kwang-sung, the company’s head of CBE business
development. According to
England-based logistics market research firm Transport Intelligence, the global
CBE logistics market is estimated to reach $134 billion by 2026, recording an
83.5 percent increase from the market value logged in 2021. "As the market
for cross-border logistics is expected to increase, the competition is fierce
to establish GDCs -- which function as a hub for international
deliveries," Min said. Currently, CJ
Logistics' GDC in Incheon operates as a hub that stores and ships products from
a US-based health products shopping mall, iHerb, to neighboring markets,
including Japan, Singapore, Australia and Kazakhstan. "In the past,
global e-commerce companies made large-scale investments and directly
(delivered goods) to overseas markets. However, they now prefer to operate
efficient GDCs in countries that have the potential to serve as transportation
hubs," said Min. "Based on CJ
Logistics' overwhelming GDC operation capabilities, the firm will further
strengthen its trans-border courier service that overcomes temporal and spatial
constraints," Lee said. Source: https://news.koreaherald.com/view.php?ud=20231112000114
2023.11.13
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