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Follow up the Insight of CJ Logistics, Korea Logistics Innovation Leader.

TES Insights

Follow up the Insight of CJ Logistics, Korea Logistics Innovation Leader.

Report Value Added Service Maximizing Retail Sales Opportunity 2017-11-26

Value Added Service Maximizing Retail Sales Opportunity

Automation & Integration

CJ Logistics

Value Added Service Maximizing Retail Sales Opportunity

The pre-retailing preparation service in the logistics industry refers to all the work processes that add value to the product before selling in the stores. It includes quality inspection, assembly, kitting, tagging, labeling, packaging and un-packing. These help retailers to respond to the market quickly and to reduce production cost. Due to the increased competition within the retail market and the emergence of e-commerce, needs for the pre-retail preparation services are increasing.

Business Environment

Needs for advanced pre-retailing preparation service on the rise
Product differentiation in quality and design is difficult and limited. Instead many companies have been utilizing sales promotions as part of the differentiation strategy to boost sales. In order to effectively support such promotions, logistics services need to be more sophisticated and agile. In particular, a bundle product delivered in a single package, which is sold substantially in peak season, needs efficiency and flexibility for unpredictable changes in volume.

Types of Value Added Services(VAS)

Types of Value Added Services(VAS)

The types of packaging and configuration for bundling products become more diverse and accordingly, it adds complexity in the logistics process. Most companies try to provide various promotional bundling products to meet the buyer’s needs. In addition, demand for small sized bundle product is increasing as the number of single person households are is rapidly growing. Moreover, new types of e-commerce such as curation commerce and subscription commerce, which are recently emerging, raise the level of difficulty in assembling and kitting process. As such, the enhancement of efficiency and productivity are highly required.

Generally, the pre-retailing preparation service is often subcontracted to small companies. These companies don’t have an integrated process from manufacturing to delivery of bundling products as they mostly rely on a manual process, and lack their own delivery network, which result in inefficiency in the supply chain.

Solutions

CJ Logistics can offer highly efficient logistics services with improved visibility through automation and systematization. Based on long experience in serving retail and the FMCG industry, we provide one-stop logistics services ranging from warehousing to delivery and eliminate inefficiencies within all processes.

Automated VAS center to enable instant responses to market demands
Based on CJ Logistics’ competence in logistics engineering, CJ Logistics has been operating the automated distribution center designed in consideration of worker’s movement, work process, product characteristics and volume. By utilizing fully automated equipment such as box folding machine, vision systems, auto labeler, barcode scanner, case erectors, box encasing machine, taping machine, weight checking machine and palletizers, highly complex tasks such as co-packing of different types of products can be efficiently handled. Using automated facilities helps reduce labor force and increase productivity by 2-2.5 times. In addition, CJ Logistics has a dedicated team to deal with emergencies such as problems in production plan and quality control as well as lack of storage space and labor force. Any risk must be managed and controlled immediately according to guidelines from three perspectives – prevention, problem solving and post reaction.

Process of pre-retail preparation service

Process of pre-retail preparation service

Improved real-time visibility through specialized IT systems
Specialized IT systems developed by CJ Logistics enables you to monitor and control the entire logistics process. Every product is barcoded in order to manage product history such as manufacturing date and expiration date per lot and track the record of worker and delivery destination. Furthermore, the manager can maintain productivity by monitoring the status of each process and check beforehand for any abnormalities such as quality issues.

One-stop service from warehousing to delivery
CJ Logistics offers integrated service of pre-retail preparation, general logistics such as warehousing & transportation, and procurement. By eliminating in prior any inefficiency that may occur in each stage of the logistics process, we reduce costs and respond promptly to changing market conditions. Moreover, thanks to the nationwide logistics network, CJ Logistics delivers products to any location within the country in a timely manner. By appropriately allocating logistics resources such as storage space, labor force and vehicles, volatility in peak season can be handled.

Our Services

Based on CJ Logistics' know-how from experience in various logistics operations, we support our customers in promoting their sales by helping reduce costs, improve service quality, and strengthen operational competences.

CJ Logistics’ FMCG & Distribution Industry Service Offerings

CJ Logistics’ FMCG & Distribution Industry Service Offerings

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