CJ Logistics

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Diversifying last mile service, a viral topic in the logistics industry
 

Last mile refers to the final stage of delivery of goods to consumers in the logistics and distribution industry. It is a concept that encompasses delivery speed, quality, and convenience of parcel reception. The importance of last mile is growing as it provides a differentiated brand experience to consumers.

Jae-ho Ahn, head of CJ Logistics' e-commerce division, said last mile, along with e-fulfillment, is one of the keywords in the logistics sector in the era of the New Normal at the Seoul Smart Mobility Expo 2021 (SSME 2021) held at the Oil Tank Culture Park on June 11, 2021. As the number of online orders has grown, consumers are looking for various types of delivery including safe and fast delivery, customized delivery, or non-face-to-face delivery. This is driving the logistics world to diversify the quality and types of delivery, which include early morning delivery, same-day delivery, and delivery on designated dates.

Last year, the number of online shopping transactions reached KRW 160 trillion, recording the highest number in Korea. This has shifted the center of consumption from offline to online platforms. Breakthrough last-mile services that satisfy consumer demands, including a convenient ordering process, personalized product recommendations, and delivery at desired times and locations are what make last mile service a big logistics issue.


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Advancement of last mile complete with e-fulfillment

With increased use of ecommerce and frequent incoming and outgoing of small quantities of goods that occur sporadically, the traditional role of a logistics center which was storing goods is evolving into a fulfillment center that handles a wide range of tasks from product selection to packaging and sorting. Add last mile delivery to a fulfillment center, and you have CJ Logistics e-Fulfillment Service.

CJ Logistics e-Fulfillment Service is a one-stop logistics solution for both parcel hub terminals and e-fulfillment centers. Based in the e-Fulfillment center at the CJ Logistics Megahub Gonjiam, the company receives goods from customers in advance and ships them as soon as the order is received. This enables them to deliver products ordered before 12 a.m. by the next day. Distribution centers nationwide act as logistics agencies supervising delivery services tailored to different industries. They provide last mile delivery through diverse logistics services, from monitoring systems by customer, same-day and early morning delivery to Greater Seoul, and three-temperature (room temperature/refrigeration/freezing) services.

CJ Logistics is also developing and operating eFLEXs, an integrated logistics management system for ecommerce companies. eFLEXs handles and manages the entire ecommerce logistics process from collecting orders to last mile delivery on a single system. It takes user convenience a step further by offering a one-stop service from order management to settlement of various expenses.

eFLEXs automatically integrates the complex process in its entirety, starting from collecting orders from multiple shopping platforms including Zigzag and Naver Smart Store, and vendors like open markets, CJ malls and general malls up to parcel delivery. Users can check numerous indicators at a glance, such as the number of daily orders, cancellations, incoming and outgoing goods against the previous month. This helps shopping mall operators in making management decisions. They can also handle various types of delivery such as next- day delivery, early morning delivery, and three- hour delivery from live commerce which spurs company growth and satisfies consumer needs.

Means of transportation is another important element in the last mile that takes care of the last leg of a journey to the final destination. There are many factors to consider for the development of logistics services, such as cities transforming into mega cities, traffic congestion, and environmental pollution. CJ Logistics is the first company in the nation to deploy electric trucks in the parcel delivery service. CJ Logistics does not plan to stop there and will replace approximately 30,000 vehicles with environment-friendly vehicles by 2030 in consultation with car owners.

What does the future hold for last mile delivery? With the coming of the new industry standard in this era of the new normal, CJ Logistics will continue to provide innovative logistics services by staying one step ahead in implementing future logistics strategies. Look forward to witnessing breakthrough last mile services led by CJ Logistics, an innovative global logistics company, designed to satisfy both customers and consumers.

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