Logistics is quickly transforming into an industry where technology integration is essential, and the associated growth potential is endless. As was the case with piece-picking robots – which were thought impossible before the introduction of deep learning technology and have since become viable – the logistics industry is proving to be an extremely active field for high-tech integration and technology level improvement.
The CJ Technology, Engineering, Systems & Solutions (TES) Innovation Center is leading this evolution of the logistics paradigm, providing premium logistics services by identifying trends based on advanced technology and by reimagining the conventional uses and systems of logistics platforms.
The TES Innovation Center has selected 12 core technologies designed to introduce robot-based on-site automation, AI and big data-focused operation optimization, and digital transformation-based systems. These introductions are part of a wider master plan from the company that integrates changes at many levels, from technology acquisition to commercialization. CJ Logistics plans to more than double the size of its research institute by 2023 and to secure 800 top professionals in order to power innovative growth across the entire company. Through open innovation, the company is also actively synergizing with technology startups and driving the development of other novel technological logistics solutions.
To learn more about the future of logistics and innovation, CJ Newsroom sat down with Kim Kyung-hoon, the director of the TES Innovation Center at CJ Logistics.
Q.Following CJ’s announcement last year that it would evolve into an innovative technology company, have the changes on-site been noticeable? What technology is the company currently researching and developing?
Kim: Since the announcement of the company’s shift towards innovative technology, I feel the biggest change on-site has been the prevalence of flexible robotic automation. By implementing Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs) in the logistics process, we have identified numerous practical benefits of doing so, such as improvements in work productivity and a reduction in overall workload.
Although it is a prototype at this stage, we have also discovered improvements in production by increasing transparency in logistics through APOLO, which is CJ Logistics’ Digital Twin technology. The TES Innovation Center will continue to develop technologies designed to lead digital transformation and bring innovation to the logistics industry.
Logistics Looks to Robotics
Q. You are a robotics expert who has been in the field for over 30 years and there has been a lot of talk lately about robots and manufacturing, but what form will the role of robots in the logistics industry take? Which aspects of CJ Logistics will see robot implementation?
Kim: According to the International Federation of Robotics (IFR), Korea has the highest industrial robot density in the world. This system measures the number of robots per 10,000 workers in a given industry and the World Robotics 2021 Report stated that Korea, with 932 units, has the largest density, 7.4 times the world average, which is 126 units. The disparity in these numbers indicates that robots have only just begun to be actively implemented in the manufacturing industry globally. Clearly it also implies a huge potential for robots in logistics.
The logistics industry has traditionally placed value in labor and experience. Values, however, have changed in the era of technology and data. Particularly in the logistics industry, the hope is that robots can replace manual labor for laborious tasks. Work that requires moving up to 20km a day, repetitive cargo lifting, moving items from one box to another – there are many tasks where robots might be able to replace humans. Robots are sophisticated and inexhaustible, so we expect them to be able to help ease manpower shortages and reduce fatigue in the workplace.
The Era of Smart Fulfillment
Q. E-Fulfillment has fast become a hot topic in the logistics industry. Is there any way to increase CJ’s competitiveness in that field through technology?
Kim: Our TES Institute focuses on three areas involving robots, digital twins and information and technology (IT) systems with the purpose of bringing together different advanced fulfillment technologies.
The first area is robot-centered. Fixed automation systems like conveyors and sorters were implemented at parcel distribution centers. The fluctuating quantity of items and the wide variety of items processed on a daily basis required improved response strategies. To address this, we introduced robots capable of responding flexibly to changes in item inventories, and this really helped with the problem. After a lot of testing, the company successfully built a smart fulfillment center that implemented 130 large scale AGVs, AMRs and environmentally friendly buffer packaging robots. We are now aiming to optimize our unmanned fulfillment center by installing robot arms able to automatically pick up different boxes and items.
The second area focuses on using digital twins for optimization. First, a digital twin visualizes the inside of the distribution center in an immersive virtual world. Then, using simulation and analysis technology, it becomes easy to find areas that require improvements. Digital twins also help enhance productivity and service quality by securing validating test results online beforehand and then implementing on-site, once the methods have been confirmed as effective. This can also reduce wasted human labor and resources by predicting the fluctuations in item quantity. We expect to triple the speed of innovation through digital twin technology, and all this would be impossible without quality data and AI.
Finally, the third area uses e-commerce operation IT systems to provide unique customer services. The company has developed an e-commerce specialized IT system, called eFLEXs, to support functionality in the provision of fulfillment services to our customers.
Ready for Tomorrow’s Changes
Q. The logistics industry is well known as a labor-intensive industry. However, recently, the logistics industry, like many others, has accelerated its transition from offline to online, due to Covid-19. As a result, the distribution industry has seen big changes and it seems like big changes are inevitable in the logistics industry due to these factors too. Does CJ Logistics have strategies or solutions prepared for this eventuality?
Kim: With the growth of e-commerce and higher customer expectations, we are expected to process more parcels in a shorter period of time. Therefore it is increasingly crucial to respond flexibly to large fluctuations of parcel quantities, and we are solving this problem through flexible automation. We are working to reduce workloads and improve productivity by utilizing robots that are more scalable and adaptive than fixed systems. Moreover, in order to respond to the fluctuating quantity of items we process daily, we are making use of AI and Big Data analysis technology to predict supply and demand against the required numbers of workers and vehicles. We are also monitoring the overall process through our IT system and our digital twin technology, gradually nurturing a system capable of identifying and solving problems that occur on-site.
