From K-Pop to K-Drama and K-Food, Korea's status in the global market is growing day by day. CJ Logistics has been leading the domestic logistics industry as a key business player of the country for the past 90 years, contributing to its economic and industrial development. As the importance of advanced logistics facilities has increased with the spread of e-commerce and economic development, CJ Logistics applied various cutting-edge technologies and automation facilities developed by CJ Logistics’ TES Logistics Technology Research Institute, such as robots, artificial intelligence, and big data, to its global logistics sites. As a result, it has grown beyond a total logistics company into a global innovation SCM solution company with 249 bases in 161 cities and 36 countries around the world. In addition, sustainable global ESG management through environmental protection and talent discovery is gaining ground on the global stage beyond Korea. Let's take a closer look at CJ Logistics' activities spreading K-Logistics throughout the world.
1)Technology, Engineering, System&Solution, 2) Supply Chain Management
Last September, CJ Logistics' US subsidiary, CJ Logistics America, won the 2022 Quest for Quality Award hosted by Logistics Management, a prestigious American logistics magazine. CJ Logistics America ranked the first in the five categories of punctuality, value, information technology, customer service, equipment and operation, far exceeding the average score. This is the 3rd time it has won this award, proving its competitiveness and differentiated logistics capabilities in the US logistics market. These achievements were possible thanks to logistics innovation, through which CJ Logistics localized state-of-the-art technologies verified in Korea and introduced them to local sites.
CJ Logistics is accelerating global market expansion through overseas dissemination of cutting-edge logistics technologies such as IT, robots and big data. CJ Logistics America’s logistics center in Texas, USA is taking the lead in logistics automation through cutting-edge automated robot technology from the TES Logistics Technology Research Institute. In line with the characteristics of the American logistics center, which has fewer floors than Korea's but a larger site and higher floor height, customized robot technologies, such as AMR (Autonomous Mobile Robot) and EPT (Electric Pallet Truck), were introduced.
CJ Darcl, a global affiliate based in India, introduced the backhaul transportation algorithm developed by the TES Logistics Technology Research Institute to increase the operating efficiency of cargo vehicles by more than 10%. CJ Darcl, India's No. 1 transport company, operates over 2,000 transport vehicles per day across India. Thanks to an algorithm that analyzes big data and provides the most efficient transportation route and operation method, it was able to shorten the distance traveled by transport vehicles and reduce carbon emissions.
The localized TES-based automation system shined in the Southeast Asia logistics market as well. In Southeast Asia, all logistical processes have been guided by human hands, but as the e-commerce market grew rapidly after COVID-19, the demand for digitalization of the logistics industry increased. CJ Century, a Malaysian affiliate, introduced MPS (Multi Purpose System), which is a multi-purpose logistics support system developed by CJ Logistics, to efficiently handle a nearly threefold increase in order volume. Another global affiliate in Vietnam, CJ Gemadept, introduced DAS (Digital Assorting System) to increase work productivity. In addition, CJ Logistics is improving the efficiency of logistics operations by applying various cutting-edge technologies tailored to local logistics centers in Southeast Asia, such as WCS (Warehouse Control System), a control system for integrated management of automation facilities, and the automatic inspection system.
CJ Logistics is taking ESG management, focused on sustainable growth in regards to the environment, society and ethics, to the global stage. In particular, it is taking the lead in eco-friendly green logistics. Last June, it supplied 400 carbon ZERO pallets, made from waste plastics, to a logistics center in Jakarta, Indonesia. A pallet is a platform used to load and carry items at logistics sites. Most countries are using plastic pallets, but some countries including Indonesia are using wooden pallets due to the high initial purchase cost. However, wooden pallets destroy nature due to large-scale logging, which have poor durability, and when used in a tropical climate with high temperature and humidity like Indonesia, they are often used for a short period of time and then scrapped due to decay and pests. CJ Logistics has replaced these wooden pallets with pallets made from recycled plastics, increasing the operational efficiency of logistics sites and reducing carbon emissions. If 400 pallets are made from waste plastics, about 26,880 kg of carbon dioxide can be reduced. This is equivalent to the amount of carbon dioxide absorbed by 8,960 pine trees in one year.
CJ Logistics America, a US subsidiary of CJ Logistics, is also leading ESG management. It was selected as the 2022 Green Supply Chain Partner announced by Inbound Logistics, a US-based logistics magazine. To practice eco-friendly logistics, CJ Logistics America comprehensively monitors the energy use of its business sites across the United States and strives to reduce overall energy consumption by estimating annual targets every year. In addition, through continuous remodeling and optimization of its logistics networks, it is reducing carbon emissions by shortening the total travel distance of trucks, and it is taking the lead in green logistics by actively introducing high-efficiency lighting, solar panels, and eco-friendly packaging materials to its logistics centers.
No matter how great automation systems and robots are, they are useless without people who can utilize such cutting-edge technologies. CJ Logistics is training the key manpower of local subsidiaries as logistics experts to strengthen global business capabilities. This year, it is providing an advanced course for logistics experts for local subsidiaries in Southeast Asia including Indonesia, Vietnam, and Malaysia. Last year, it offered a basic course for logistics experts to about 270 local employees in 5 countries: Malaysia, Mexico, India, the Philippines, and Thailand. Local staff are responding very positively to the training program. While continuously expanding facilities and logistics centers to which TES-based advanced technologies are applied, CJ Logistics is further strengthening its overseas logistics business capabilities by increasing the expertise of local operators.
CJ Logistics is striving not only to strengthen the competency of local employees but also to improve its organizational culture. As a result, CJ Darcl was certified as a 2022-2023 Good Company to Work in India by GPTW (Great Place to Work), a world-class corporate culture research institute. CJ Darcl is making continued efforts to create a corporate culture and work environment that will enable the company and its members to trust and grow together. Compared to typical companies in India, its various welfare benefits stand out with various educational programs to help employees grow, the child scholarship support system, and the homecoming cost support for employees who are working far away from home. CJ Logistics is providing amazing in-house programs that employees from all over India can participate in throughout the year, such as cricket competitions, sports events, women's welfare activities, and local festivals.
CJ Logistics' global logistics innovation with cutting-edge technology, ESG management, and global talent training will continue in the future. Please look forward to the success of K-Logistics as it reaches further and higher in the world.
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