The Korea Herald


Naver and CJ Logistics push for next day delivery

Strategic alliance opens two new fulfillment centers, ramps up efforts to challenge Coupang

By Yim Hyun-su

Published : June 20, 2021 - 15:20

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A CJ Logistics worker scans a product at its fulfilment center in Gunpo, Gyeonggi Province. (CJ Logistics) A CJ Logistics worker scans a product at its fulfilment center in Gunpo, Gyeonggi Province. (CJ Logistics)
Naver and CJ Logistics said on Sunday its “all-round” fulfillment center in Gunpo, Gyeonggi Province, had begun operation in a further push for next day delivery.

The five-story warehouse, boasting a floor space of 38,400 square meters -- an equivalent of five soccer stadiums -- can store, manage, pack and ship items using the latest logistics technology including MPS and eFLEXS.

Another center with a cold chain system focusing on chilled and frozen products is set to open in Yongin, also in Gyeonggi Province, in August as part of efforts to cut down the delivery process time.

The opening of two new fulfillment centers will see delivery drivers pick up packages and head straight to the main logistics center in Gyeonggi Province, allowing customers to receive packages the next day when they place an order on Naver’s shopping platform before midnight.

The move comes after Naver and CJ Group signed a 600 billion-won ($529 million) share-swap deal last year, signaling a strategic partnership in South Korea’s competitive e-commerce industry which has been energized by the rise of crosstown rival Coupang in recent years.

“While regular courier services stop taking orders at 3 p.m. before dispatching packages for the day, fulfillment centers send packages straight to the Gonjiam mega-hub terminal which is located one hour away without waiting for drivers or going to a sub-warehouse,” CJ Logistics said in a statement.

Efforts to cut down the delivery time have been key to success in the e-commerce industry.

Coupang, the second largest e-commerce platform in the country by turnover which has soared in popularity in recent years thanks to its next day delivery service “Rocket Delivery,” posted a record breaking 4.7 trillion won during the first quarter.

The Naver-CJ Logistics alliance has also announced plans to trial new artificial intelligence-based logistics technology and environmentally friendly packaging.

COLVA Forecast -- Naver’s logistics demand forecasting AI model -- will be adopted at the fulfillment centers in Gunpo and Yongin to estimate demand a day ahead to help operate the facilities more effectively.

Autonomous robots will also be trialed in logistics work, the company added.

In an effort to avoid excessive packaging, both companies said they will use a simulation-based technology to design and produce boxes in accordance with the size of packages and replace plastic packaging such as adhesive tapes with paper-based materials.

By Yim Hyun-su (