CJ Logistics is streamlining global logistics to meet e-commerce demand with advanced technology.
In an era in which consumers can make quick, convenient international purchases through e-commerce platforms, global logistics is taking on an increasingly important role. With the rising demand for cross-border shopping, the establishment of a reliable logistics system is crucial in ensuring the safe and timely delivery of packages worldwide. CJ Logistics, a leading innovative supply chain and technology company, has pioneered the optimization of cross-border e-commerce logistics through advanced technologies and services.
The Growth of International E-commerce Market
Cross-border e-commerce refers to the purchasing of online commercial goods across international borders. This process includes the storage, inventory management and release of products, as well as the transportation and customs clearance process.
The cross-border e-commerce market is expected to see ongoing growth as shipping becomes increasingly fast and efficient, with a predicted average growth rate of 12.9% per year, reaching an anticipated value of 176 trillion KRW (136 billion USD) by 2026. To meet this demand, CJ Logistics has continued to expand its shipping network, operating global logistics centers around the world.
A part of the company’s “North American Project” with the Korea Ocean Business Corporation (KOBC), for instance, an investment of 457 million USD (600 billion KRW) will be allocated to constructing three new large-scale logistics centers in the U.S. CJ Logistics is also planning to construct a new Global Distribution Center (GDC) in Saudi Arabia by 2024, a state-of-the-art facility that will span 18,000 square meters of floor area capable of handling a daily throughput of 15,000 boxes in Saudi Arabia. Through the expansion of its logistics infrastructure, the company aims to enhance daily processing volumes and advance logistics technology for the convenience of its global customer base.
Advanced Technologies for Global Shipping
Located in South Korea, CJ Logistics’ Incheon GDC functions as a comprehensive logistics system for the company. GDCs are used by logistics operators to store goods from various countries and handle the process of picking, packing and shipping products to customers upon receiving an order. CJ Logistics’ GDC utilizes a wide range of cutting-edge technologies via its TES (technology, engineering, systems & solutions) system, handling over 20,000 deliveries daily. This includes the company’s quick picking system (QPS), which incorporates multiple conveyor belts to efficiently manage the logistics supply chain from the e-commerce product selection stage to shipment.
During this process, parcels are seamlessly packed with automatic boxing and weight inspection equipment, as well as smart packaging machines. Once the appropriate customer label has been printed and applied using an automatic labeling machine, parcels are dispatched using a three-sided barcode reader to ensure thorough package tracking at every stage.
Streamlining Importation, Inspection, Safety and Compliance
An important aspect of the transboundary logistics process is ensuring that imported goods adhere to the safety and compliance of local customs regulations. This is where the inbound customs clearance center (ICCC) comes into play.
Alongside its GDC center, CJ Logistics operates an ICCC in Incheon, South Korea that handles a remarkable 60,000 shipments per day. Upon arrival, packages undergo an import inspection, followed by customs clearance checks and quarantine procedures. Once a parcel successfully clears these processes, it is promptly authorized for delivery.
CJ Logistics’ advanced technologies expedite the inspection process, ensuring the swift delivery of parcels to their respective customers. The three-sided barcode reader once again scans packages as they arrive in the warehouse to track their shipment progress in real-time. High-speed X-ray machines then analyze the contents of packages and allow them to proceed through a series of cross belts for further customs clearance procedures. To streamline the customs clearance process even further, CJ Logistics plans to increase its daily shipment volume from 60,000 to 80,000 in the future.
Certified Excellence in Global Logistics
Despite its substantial volume of daily shipments, CJ Logistics maintains a timely and diligent delivery process that satisfies thousands of customers all around the world. As a testament to its commitment to safety at every step of the logistics process, CJ Logistics has for the past 10 years consistently been the top-rated company in Korea for compliance with customs regulations in quarterly assessments. This recognition highlights the company’s ongoing dedication to ensuring customer satisfaction.
Beyond this, CJ Logistics has obtained the Authorized Economic Operator (AEO) certification from the Korea Customs Service, a program built based on customs-private partnership under the SAFE Framework international principle, affirming the company’s upholding of exceptional security management standards. Additionally, the company received Logistics Management’s Quest for Quality Award in recognition of its excellence in punctuality, value, equipment and operations capacity, technology and customer service in 2022.
