There are no borders for shopping now. Consumers all over the world can purchase the item they want in overseas internet shopping malls. The delivery that would take more than a week when you bought in the online shops abroad is now completed in just two days. What makes overseas delivery faster than inland one?
Logistics that shortens delivery time after creating logistics infrastructure on a continent-by-continent basis moving beyond direct offshore purchasing and reverse direct procurement is referred to as ‘CBE (Cross Border E-Commerce) logistics.’ Its purpose is to select a country that can serve as a base for logistics and build a logistics center. CBE logistics is a concept that includes fulfillment services, such as product storage, inventory management, and packaging, as well as customs clearance and delivery of products. It can also be called ‘cross-border logistics,’ which manages and delivers products freely across borders.
CBE logistics is a new market that reaches about 100 trillion won in terms of market scale. Transport Intelligence, a research institute of international logistics says that the global CBE logistics market was estimated to be worth about 100 trillion won in 2021, and it is expected to grow at an average annual rate of 12.9% to 176 trillion won in 2026. In line with the increase in demand, CJ Logistics is going all out to establish its own global logistics infrastructure, the results of which are finally paying off. CBE logistics services are provided to 7 countries including Korea, the US, China, Japan, Malaysia, Singapore, and the Philippines, and sales in related services came to KRW 220 billion last year.
The key to CBE logistics is the ‘Global Distribution Center (GDC).’ The aim is to create a distribution center near the country where the consumer resides. The GDC stores the goods, and when an order comes in, it is delivered directly from the GDC in the nearest neighboring country to where the consumer is located. The shorter the distance the goods travel, the shorter the transit time.
Since 2018, CJ Logistics has been operating the GDC of the U.S. health functional food mall ‘iHerb’ in the Incheon International Airport Free Trade Zone. With a total floor area of 14,000㎡, the maximum number of daily deliveries has reached 20,000. Currently, through Incheon GDC, iHerb orders are delivered within 2-3 days to consumers in Asian regions, such as Hong Kong, Japan, and Singapore. CJ Logistics plans to expand the iHerb GDC by the first quarter of next year and install ‘Auto Store,’ a state-of-the-art logistics robot system, to increase its handling capacity to 30,000 boxes a day.
Infrastructure related to direct overseas purchasing and reverse procurement is expected to keep expanding. As the top company in overseas direct procurement market share, CJ Logistics plans to increase the handling capacity to 60,000 boxes per day by adding facilities other than the Incheon International Express Center (ICC), which can handle 35,000 boxes of direct purchases per day. In particular, we have recently been awarded and managed the domestic direct purchase product delivery business of a famous global e-Commerce company, and the GDC operation business in the Asia Pacific region is also in full swing.
CBE Logistics is a service that provides a faster and more accurate shopping experience to e-Commerce consumers through logistics hubs between countries. Of course, fast delivery is not possible just because the location of the distribution center is closer. CJ Logistics provides logistics services specialized for e-Commerce by combining big data analysis capabilities accumulated over many years combined with advanced logistics technologies. All processes of CJ Logistics' GDC are also operated with a state-of-the-art automation process. By interlocking the order system, we process information as soon as a buyer places an order, and provide integrated steps of delivery from forwarding and shopping to inventory management. We also have a plan for the global expansion of our facility operation know-how together with cutting-edge technologies, such as robots, big data, and artificial intelligence.
In line with the fast-changing era, CJ Logistics is leading the logistics market with innovative technology and know-how. Even in the era of cross-border parcel delivery, look forward to the work of CJ Logistics, which will lead the CBE logistics market by securing super-gap capabilities and reaching the world beyond the Asia-Pacific region!
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