Optimizing Retail SCM by Smart Logistics Solution < TES Insights | TES | CJ Logistics
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 Optimizing Retail SCM by Smart Logistics Solution 2017-11-26

Optimizing Retail SCM by Smart Logistics Solution

Retail∙F&B Franchises∙Fashion

CJ Logistics

Optimizing Retail SCM by  Smart Logistics Solution

In industries that operate offline stores, such as retail, food & beverage franchises, and fashion, stores are the main contact point with consumers, and hold significance beyond just sales. To cope with growing consumer demands and support increasingly complex distribution strategies, CJ Logistics offers an optimized logistics solution for store operations.

Business Environment

Diversification of Store Types and Roles
The number of one-person households and increasing income levels are leading to changing consumer behavior and diversification of store types and roles. Small stores are becoming smaller; big stores are becoming bigger. New types of stores, such as shop-in-shop, are opening. At the same time, store roles are becoming more diverse, from convenience stores that provide various daily services, such as public services and parcel delivery, to upgraded shopping malls with entertainment and showrooms.

Importance of Customer Experience and Reputation Management
Social media has emerged as the fastest media for receiving the latest information. As customers share in-store experiences on SNS in real time, customer service has become a crucial factor in the success or failure. Since insufficient reputation management directly leads to decline in sales, in-store customer service quality has become more important.

Increasing Need for Advancement of Store Logistics Services
The changing business environments of stores require more accurate and faster order processing, and differentiated shipping services tailored to the store’s characteristics. Logistics services must go beyond just delivering packages to the recipient, but also minimize logistics tasks and maximize convenience in stores so that stores can focus their efforts on providing better customer services.

The role of stores is to boost sales by providing customers with best service. Accuracy and quality issues on logistics burden store staffs at point of sales and degenerate to focus on the main tasks. In this perspective, logistics process and operation must be improved.


Every process must be designed to provide accurate, fast, and specialized logistics services that match the characteristics of each store, and continuously improved to minimize any adverse impact on store operations.

Store Convenience-oriented Logistics Operation Process
Optimal network design : Optimal logistics hubs and shipping networks are designed by considering store distribution, order volume, delivery time, and merchandise characteristics, using the ALLO logistics network optimization solution.

Fulfillment center layout optimization : By deploying various automated facilities with CJ Logistics’ in-house technologies, such as Ex-PAS, Ex-DPS/DAS, and W-Navigator, CJ Logistics increases productivity while minimizing human error. Furthermore, the shipping/arrival layout and processes are optimized to enable shipping by product or purpose to increase convenience when displaying products within the store. The coffee franchise S used this solution to increase its store’s delivery accuracy by 3 times the industry average, and simplified and automated delivery inspections. Furthermore, it reduced the time taken for logistics tasks, such as replenishment, by 50%.

Enhanced shipping efficiency : Calculating the volume of each item using an Intelligent Scanner when shipping from the logistics center helps increase load volume per vehicle and lowers transportation costs. A truck assignment algorithm is used to plan the optimal route by considering customer order volumes, which change daily. CJ Logistics also provides a shipping time designation service for each store, such as unattended delivery* and off-peak shipping. Dining franchise V, coffee franchise S, retail distributor O, and fashion company E have reduced time and effort spent on logistics at a store by 5-10% using unattended delivery.
* Unattended delivery : Deliveries made before the store opens, and before any employee arrives at work.

Improved Logistics Visibility and Convenience in the Store
GPS-based real-time vehicle tracking : The system provides real-time location tracking of delivery trucks and estimated arrival times, removing the need for any stand-by time to receive the product at the store.

Secured product visibility : Every product is barcoded upon arrival at the logistics center and scanned after each work unit to monitor the progress in real-time. Stores can check box contents by scanning the barcodes on them, allowing for effective display plans.

Mobile logistics environment : Store employees can use the mobile app to handle key logistics tasks, such as checking shipments and requesting returns in real-time, enhancing logistics task convenience for the store.

Customized Store Service Support System
Appropriate technology/solution : CJ Logistics offers customized technology and solutions that consider the economic efficiency of the investment. In the case of coffee franchise S, the company resolved issues related to unattended delivery inspections by using security stickers.

Store optimization counseling : CJ Logistics offers various ways to optimize a store’s logistics tasks by considering the store location, unloading conditions, interior layout, movement routes for logistics, and product characteristics. In the case of dining franchise F, the company planned a convenient logistics workflow by conducting interior and layout consultations from the logistics perspective before a branch opening.

24/7 communications channel : By establishing a timely monitoring system of store VOC (Voice of Customer) through a mobile app, call center, and delivery drivers, CJ Logistics is continuously improving its service quality.

TES Innovation Center

TES Innovation Center

The TES Innovation Center is playing a leading role in the future logistics paradigm based on disruptive technology. This is also where highly advanced logistics innovation technology is created, "smartifying" the supply chain of each client.

* Go to TES Innovation Center

Key Competence of CJ Logistics

CJ Logistics possesses extensive references and professional capacity based on years of experience and know-how from serving retail, food & beverage, franchises, and the fashion industry. Using its proprietary TES (Technology, Engineering, System & Solution)-based technologies, IT systems, and differentiated consulting methodologies, CJ Logistics offers a highly-reliable solution through a scientific and logical approach.

Key Competence of CJ Logistics

Key Competence of CJ Logistics

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