Reporting significant growth, CJ Logistics continues to expand its global scope.
Leading global logistics company CJ Logistics has achieved dramatic growth in the 10 years since its acquisition by CJ Corporation in 2013, reporting threefold growth in revenue and sixfold growth in operating profit. The company’s central business areas have evolved considerably, building on its initial cargo handling and land transport expertise to develop substantial parcel delivery, cross-border eCommerce (CBE) and global business capabilities. This evolution has contributed to significant breakthroughs in the logistics industry and new transformations within the distribution sector.
Ahead of CJ Logistics’ 100th anniversary in 2030, the company is continuing to develop its operations and grow to the level of other global-leading logistics companies.
In April 2013, CJ GLS (now CJ Logistics) – a logistics affiliation of CJ Corporation merged with Korea Express to create a fully integrated logistics corporation. Since joining the CJ Corporation, CJ Logistics’ revenue has increased by more than 8 trillion KRW(6.2 billion USD) – from 3.7 trillion KRW(2.8 billion USD) in 2013 to 12.1 trillion KRW(9.5 billion USD) in 2022. Its operating profit has also increased by nearly 350 billion KRW(271 million USD) – from 64.1 billion KRW(50 million USD) to 411.8 billion KRW(321 million USD) – with both revenue and operating profit hitting record highs each year for 10 consecutive years.
CJ Logistics’ business and workforce structure has also seen significant change since the acquisition. The Contract Logistics (CL) division, for example, was at one point the company’s flagship business and accounted for half of its entire revenue in 2013. As of last year, however, CL accounted for just one quarter of total revenue. CJ Logistics’ Global Business division, by contrast – which previously accounted for only 28% of overall revenue – has jumped to 42%, reflecting the company’s increasing focus on expanding its operations across the globe. While the annual volume of parcels handled in 2013 was 500 million boxes, this has since escalated to 1.7 billion boxes as of last year, and the company’s staff numbers have increased too, from 8,400 to 20,000. Staff numbers in overseas subsidiaries, tellingly, have increased from just 2,900 to 13,700, underscoring the company’s commitment to becoming a global logistics company.
Immediately following the merger, CJ Corporation focused CJ Logistics’ capabilities on global supply chain management (SCM) and has grown in size through international mergers & acquisitions (M&As). Starting with China in 2013, CJ has developed a robust network of logistics companies all around the world, including in the U.S., India, Vietnam and Malaysia. CJ Logistics’ global locations have increased from 35 in 17 countries 10 years ago to 112 in 35 countries today, while global sales have surged from 1.7 trillion KRW(1.3 billion USD) to 5.06 trillion KRW(4 billion USD). In one notable example of global expansion, CJ Logistics’ sales in the U.S. – the heart of the worldwide logistics business – were only 98.7 billion KRW(76.9 million USD) 10 years ago but have since grown by nearly 13 times that figure, reaching 1.26 trillion KRW(982 million USD) last year.
For the past 10 years, CJ Logistics has strived to transform logistics from an industry reliant on labor-intensive systems into a technology-intensive industry. Its innovation has strengthened global competitiveness, with its TES(Technology, Engineering, Systems) Innovation Center currently equipped with the most advanced logistics capabilities in Korea, including innovative robotics, AI and Big Data technologies.
Learn more about CJ Logistics’ TES Innovation Center here.
