CJ Logistics

The logistics sector shifts the focus from going large in terms of warehouses, manpower, and equipment, to intellectual property when identifying their core competency.

CJ Logistics, spearheading technological innovations in logistics, is pushing for the acquisition of intellectual property (IP) rights in the logistics industry. The move was due to the shift in the logistics business, for which there had been the previous thought that having massive warehouses, a large pool of manpower, big equipment, and vast experience constituted their core business competency, but the industry today harnesses the defining strength from intangible assets, such as advanced technology and algorithms.

CJ Logistics obtained two patents on making the right-sized boxes and matching them with the products ordered.

CJ Logistics announced on Oct. 21 that they had obtained two patents on algorithms that facilitate the optimal operation of e-commerce fulfillment centers. The patents they acquired are an Algorithm for Calculating the Ideal Box Size Per Order, and an Algorithm for Choosing the Optimal Box Dimensions.

The Algorithm for Calculating the Ideal Box Size Per Order is a patent on how the company makes shipping boxes of ideal sizes that best fit the products ordered by customers. CJ Logistics applied big data technology to identify the optimal box size per order by combining 11.2 billion different cases based on the type and the quantity of products customers ordered over three months.

The Algorithm for Choosing the Optimal Box Dimensions is a patent on how the company builds big data on product dimensions by measuring the dimensions of all sorts of products delivered at the fulfillment center, and uses this big data to choose the optimal box size for each product so that is neither too big nor too small.

CJ Logistics used these algorithms to calculate nine optimal box dimensions and has succeeded in reducing the average size of the shipping boxes used at their fulfillment centers by 10%.

Following the rapid increase in the type of e-commerce products and the rise in demand for faster delivery, shipping boxes have become unnecessarily bigger. This is causing many problems, such as dwindled efficiency in logistics, increased costs from paper waste used to make boxes, and the overall higher volume of waste caused by overpackaging.

When using these patented algorithms, it is possible to curb unnecessary overpackaging and prevent wasting packing materials, thus also reducing waste. This helps us to preserve the environment and cut down on greenhouse gas emissions. Moreover, the technology enables fulfillment centers to reduce the size of the boxes, meaning that more can be loaded in trucks, which will further lower costs and improve delivery efficiency.

CJ Logistics announced plans to become a driver of technological innovations last year, with advanced technologies such as big data, AI, and digital twins added.

Gong Seung-hyung, Management Leader at the TES Innovation Center, CJ Logistics, said, “Advanced technologies like big data, AI, digital twins, robots, and algorithms have fast become the new decisive elements for core business competency in the logistics industry. Therefore, CJ Logistics is working hard to secure the latest innovations in technology and to deploy them in our fulfillment houses”