In the rapidly expanding e-Commerce market, there's a growing trend towards implementing cutting-edge automation systems in logistics. By replacing manual tasks with robots, there's a substantial boost in operational efficiency. What benefits can we anticipate from adopting these smart logistics services? Additionally, let's explore how CJ Logistics is adapting to these trends.
Smart logistics is not only a global trend but also a rapidly growing phenomenon within South Korea. Both international and local companies are showing keen interest in diversifying their businesses by embracing logistics robots. According to Japan's Fuji Keizai Group, the global market for logistics and delivery robot market is expected to reach approximately 11.5 trillion KRW by 2025.
CJ Logistics' Cube-shaped Warehouse Automation System, AutoStore
CJ Logistics has been among the most proactive companies in the emerging logistics industry. It established its presence in Incheon, the hub of logistics processes in South Korea, to initiate its GDC (Global Distribution Center) business in Korea. The center handles global logistics operations for 'iHerb', a worldwide health and wellness shopping mall. Since its opening in 2019, this global logistics center has been processing orders for customers in Asia-Pacific regions, including Japan, Singapore, and Australia. The hidden gem here is undoubtedly the ‘AutoStore’.
So, what is the AutoStore? From the name alone, it seems to signify some form of automation. AutoStore is a cube-shaped warehouse automation system that effectively utilizes workspace, converting all available space into storage areas. When an order comes in, robots swiftly pick the items and deliver them to the workers, enhancing energy efficiency through systematic movement direction settings.
Accurate Inventory Management Capability
When workers issue a product release order, logistics robots immediately recognize where the order is. They swiftly move across the storage grid to retrieve storage containers containing the ordered products, enabling workers to increase the accuracy of product pickups. This is known as the GTP(Goods-To-Person) system that a wirelessly operated robots move containers containing incoming or releasing products, and workers place the ordered products into boxes accordingly.
In the past, human error could lead to incorrect product placement or inventory management issues. However, with AutoStore, accurate inventory management capabilities have been achieved, reducing human error and improving inventory management.
Fast Picking Speed
At the Incheon GDC, logistics robots have automated the process of picking and sorting products. This not only enables faster product processing, but also increases the release processing capacity by more than 2.8 times compared to previous methods. Additionally, it has resulted in a 1.5-fold increase in the maximum daily release.
Furthermore, compared to the rack method, where products are stored on fixed steel shelves in pallet units, AutoStore efficiently utilizes space more densely, increasing storage efficiency by 4 times. With swift progression from product storage to inventory management and picking, coupled with a robust system, the adoption of AutoStore in logistics operations brings numerous advantages.
Improvement in Energy Efficiency
The AutoStore system calculates the optimal routes to control the robots’ movement, minimizing unnecessary energy consumption. The 10 robots utilized in Incheon GDC consume the same amount of power as just one vacuum cleaner. Additionally, they are composed of standard modules, eliminating the need for complex system changes or additional work. Despite the seemingly high number of robots, CJ Logistics' operation of the AutoStore system focuses on improving energy efficiency for sustainable environmental practices.
CJ Logistics is set to actively pursue its strategy in the smart logistics market with increased vigor in the future. Please stay tuned for updates on CJ Logistics, a global SCM solution company leading the logistics market with its cutting-edge technology capabilities.
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