|CJ Logistics aims for 2020 Thai market leadership with facility upgrade, operations expansion||2018-10-02|
- CJ Logistics, South Korea’s largest integrated transportation and logistics company, expands Thailand business footprint coverage and enhances customer service.
- This latest strategic move aims to support Thai business to capitalize on e-commerce growth and position the company as the leader in the Thai logistics industry by 2020.
Bangkok, September 28, 2018 – CJ Logistics, South Korea’s largest integrated transportation and logistics company, today announces the upgrade of its Thailand-based central distribution center and the expansion of regional branches to achieve 100% nationwide coverage. The move aims to support Thai e-tailers with seamless, reliable and quality delivery services countrywide to support strong e-commerce growth, moving CJ Logistics nearer to its ambitious goal of becoming the leader in Thailand’s parcel business by 2020.
Mr. Cha Dong-Ho, Senior Executive Vice President – Head of Parcel Business Unit, CJ Logistics said: “CJ Logistics has more than 88 years of expertise in logistics with a strong global network and comprehensive services. Present in Thailand since 1998, our current focus is supporting the Thai e-commerce market growth potential with our parcel delivery business. I am impressed by the innovation Thai people show in this digital commerce phenomenon. From a long-term business perspective, this is a key factor in the growth of the logistics industry. Our goal is to help provide value to Thai companies and consumers with our services.”
As a strategic regional location to support CJ’s business growth, the company has invested in the development of a 71,900-square-meter central logistics center in Bangna. Connected to key highways, major airports and terminals, it will be completed by May 2019, with the capacity to process up to 408,000 parcels per day, with the implementation of an automated sub-classifier called Wheel Sorter, upon completion capacity is improved by 10 times, from the existing 40,000 parcels per day.
In addition to this improvement to its facilities, CJ Logistics is continuously expanding its points of service nationwide. The company currently has 74 branches, 650 drivers and a daily handling capacity of 40,000 parcels. Within 2018, CJ Logistics will open an additional 4 branches in Bangkok and major provinces in the central, eastern, northern, northeastern and southern regions. In 2020, it will expand the service points to 200 branches covering all major cities with an additional 4,249 drivers and a maximum daily capacity of 300,000 parcels.
Alongside its vision to be within the top five global logistics companies by 2020 with strategies to expand its networks in Southeast Asia, China, the Americas and Europe, the logistics industry’s robust development is supported by the government’s Eastern Economic Corridor project, attracting international investment in Thailand’s high-technology manufacturing. As well as the ‘Thailand 4.0’ initiative to promote the e-marketplace and e-payment among Thai consumers and smaller businesses. CJ Logistics aims to tap into this huge potential by upgrading its existing parcel business and providing Thai customers with better delivery solutions countrywide.
While CJ Logistics already enjoys 50% of its home market in Korea, the company is now shifting its focus to the Thai market, where it doesn’t benefit of the same level of brand presence, but sees considerable opportunities for growth. CJ Logistics has 25 years of parcel delivery know-how and has 20,000 couriers with an infrastructure system that handle 6.2 million parcels a day.
“CJ Logistics’ vision towards becoming one of the world’s top players in the parcel industry is fueled by our continuous investment in innovation and technology, which helps us optimize our operations, in order to serve our customers better. As part of this vision, we have recently opened the largest automated hub in Asia, CJ Logistics Megahub Gonjiam, able to handle 1.7 million parcels per day, increasing our total capacity to 7.3 million parcels daily. Another innovation we have implemented at all our local bases is the automated sorting belt, which has helped us considerably reduce the parcel sorting time from 5 hours to 1 hour only. Excellent customer service is part of our company DNA, so we have created a mobile app to facilitate the communication between our customers and our team. In addition, CJ Logistics is the first Korean logistics company to implement an AI-based chat-bot system, available to our customers 24/7,” Mr. Cha Dong-Ho added.
CJ Logistics see their plans for implementation of automatization, systemization and AI-supported systems, such as AI Secretary System, as an integral part of their success story in Thailand, with the aim to develop a strong network across Thailand and be able to deliver world-class services tailored locally to their customers.
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