CJ Logistics Amplifies Guaranteed Delivery Offering with the Launch of Two New Fulfillment Centers


▶ CJ Logistics is stepping up its Guaranteed Delivery service through the expansion of fulfillment centers.

This strategic move by CJ Logistics, a forward-thinking tech firm, aims to broaden the scope of its highly-rated 'Guaranteed Delivery' service, a feature cherished by both sellers and buyers.

Launching two expansive centers measuring 40,000㎡ and 29,000㎡ respectively... Reinforcing 'Guaranteed Delivery' services via the extension of infrastructures

CJ Logistics declared on the 26th its plan to commence operations at two new Fulfillment Centers (FCs) located in Icheon, Gyeonggi-do. The Icheon2FC, based in Majang-myeon, Icheon-si, stretches across four levels, covering a total of 39,867㎡ (12,060 pyeong), while the Icheon3FC, situated in Janghowon-eup, encompasses three levels spanning 29,104㎡ (8,804 pyeong). Both centers are dedicated to providing comprehensive fulfillment services for a range of ambient temperature products, including fashion apparel and general goods. Fulfillment, in essence, streamlines complex logistics procedures such as inventory management, packing, inspection, shipping, and delivery for a multitude of sellers' products.

By expanding its fulfillment center capacities, CJ Logistics endeavors to strengthen its flagship 'Guaranteed Delivery' service. This unique service commits to ensuring timely delivery as per the date specified by the seller to the buyer. Excluding regions with certain geographical constraints, next-day delivery is guaranteed to over 90% of the country. As the operation center broadens its scale, the range and quantity of products eligible for service are predicted to rise.

Post the successful debut of the 'O-NE' Brand, the uptick in service demand... Elevating logistics efficiency through cutting-edge technology

The triumphant roll-out of 'O-NE' by CJ Logistics is also playing a crucial role in the expansion of fulfillment services. 'O-NE' is a bespoke delivery brand of CJ Logistics, an all-encompassing brand that includes an array of services like regular parcel delivery, 'Guaranteed Tomorrow O-NE', overnight delivery 'Dawn O-NE', and same-day delivery 'Today O-NE'. With the integration of this distinguished brand into the industry's top-tier service, it is eliciting a resounding response from both sellers and buyers. The company revealed its proactive strategy of widening its fulfillment centers to cater to the progressively surging demand for services.

As per the Q1 2023 figures released by CJ Logistics, the throughput at the fulfillment centers has escalated by 62.1% in comparison to the same period last year, marking 13.57 million boxes. Additionally, the count of client companies also amplified by 591%, reaching a total of 691. The revenues from the fusion of fulfillment operations with courier services in the first quarter have seen an uplift of 34.7%.

Even amid E-commerce market stagnation, the first quarter fulfillment volume and client companies see an increase of 62% and 591% YoY, respectively

In the face of time and space limitations in logistics, CJ Logistics is advancing beyond these constraints through its 'Integrated Fulfillment' initiative. With this system in place, products exit the fulfillment centers and reach customers via a vast network of courier hub terminals and subsidiary terminals distributed nationwide. This one-stop solution simplifies complex logistics processes and leverages the already operational nationwide logistics infrastructure. As a result, most orders placed before midnight are delivered to customers' doorsteps the very next day.

To spearhead innovative services, CJ Logistics does not hesitate to incorporate cutting-edge technologies such as robotics, Artificial Intelligence (AI), and Big Data throughout the logistics process. As these innovative technologies including transport robots, digital twins, and smart packaging are deployed at the fulfillment centers, the company is witnessing a dramatic surge in logistic efficiency. Notably, the Icheon2FC center operates with a 5G network, 'Link 5G,' that is a thousand times faster than conventional Wi-Fi.

Looking ahead, CJ Logistics is set to onboard sellers that align with the unique characteristics of Icheon2FC and 3FC, thereby enhancing stable operations and fostering mutual growth with sellers and consumers.

As Ahn Jae-ho, E-commerce Division Head at CJ Logistics, puts it, "Our 'Guaranteed Delivery' service, which is founded on the principle of 'Assured Delivery', has garnered a significant positive response, and we see the demand for it escalating. Through the expansion of our infrastructure and incorporation of advanced technologies, we aspire to boost our operational scale and capacity, fostering growth in alignment with our sellers and consumers, thereby transforming the logistics industry's paradigm.

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