CJ Logistics Is Spearheading Logistical Innovation in Southeast Asia

- CJ Logistics is introducing TES (Technology, Engineering, System & Solution) based advanced automation systems and operation measures to Southeast Asian markets
- New technologies verified in CJ Logistics’ Korean markets are being tailored specially to enhance productivity in specific regional markets and assist employees there
- Automation systems like the Multi-Purpose System (MPS) and the Digital Assorting System (DAS) in Malaysia and Vietnam dramatically improve centers’ effectiveness

A CJ Logistics employee takes advantage of the company’s latest leaps in automated logistics technologies

CJ Logistics has set its sights on improving its engagement with Southeast Asian markets through the implementation of its latest logistical systems. In its native Korean markets, the company has seen huge improvements in productivity by incorporating these new, verified technologies, improvements that it now hopes to bring to its operations in Southeast Asia, announcing on 9 June that it will continue to expand and apply TES (Technology, Engineering, System & Solution)-based automation logistics systems to its distribution centers there.

In Southeast Asian logistics regions, it is common to use manual labor on a large scale to handle all kinds of logistical processes, from the warehousing of goods to picking, packaging, releasing and inventory stocktaking.

However, in part due to the impacts of COVID-19, the e-commerce market in Southeast Asia is expected to continue to develop rapidly, with an annual growth rate of more than 23% by 2025. Additionally, the increasing demand for ever-improving systems related to transformation and automation in the industry shows no sign of slowing. In order to adapt to these changes, CJ Logistics has begun operating its TES-based automations systems in local Korean market environments alongside the introduction of management measures specially tailored to function well there.

Now these new systems are being rolled out elsewhere. Last year, CJ Logistics’ distribution center for household goods in Malaysia adopted the Multi-Purpose System (MPS) – a system designed by the company itself – to support logistical operations in the area. This resulted in increased efficiency, which helped process a recently tripled quantity of orders. MPS is a cutting-edge logistics system that supports picking, distribution and releasing workforces by providing them with improved customer order information. By synthesizing different kinds of IT technologies, this system can monitor and provide real-time updates and can also flexibly handle an environment that, by nature, is constantly in flux, from changes to the volume of goods expected for delivery to shifts in operation measures.

Furthermore, through the attachment of a wireless terminal unit called a Multi-Purpose Indicator (MPI) – which has access to the MPS – to storage shelves, relevant information pertaining to products and product quantities can be automatically selected and brought to workers’ attention. The increase in accuracy and efficiency brought about through the use of MPIs and the MPS is substantial. CJ Logistics’ Malaysian center was able to heighten the productivity of its picking operation – which involves the identification and individual boxing of products according to their order details – by introducing MPS technology, achieving manpower input reductions of 55%.

Meanwhile, CJ Logistics’ Vietnam-based retail logistics center has been enhancing productivity by adopting another new system, the Digital Assorting System (DAS). DAS – another kind of automation technology – is specialized to assist centers that deal with the picking and releasing of large quantities of mass-produced goods. Incidentally, it is also the technology most widely used in Korean distribution centers. By taking advantage of DAS, workers need only scan goods scheduled for release, then box them up according to quantities clearly displayed on nearby shelves, enabling quick and precise task performance by even inexperienced workers.

Beyond these projects, CJ Logistics has been extending its application of yet more advanced and experimental technologies specifically customized to suit its different regional centers in Southeast Asia. These include automatic inspection systems and the Warehouse Control System (WCS), which provides new methods of integrated management for other types of automation facilities.

“Our latest logistics technologies, which we have been introducing to Korean warehouses, are verifiably more efficient and we are now incorporating them into our overseas business fields in Southeast Asia, such as Vietnam, Malaysia, Indonesia and Singapore,” an official from CJ Logistics said. “Our professional, TES-based consulting capabilities will allow us to strive to provide the best customized logistics services possible and in doing so satisfy the needs of our customers all over the world.”

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