CJ Logistics to invest in platform business as new growth engine
CJ Logistics worker at the company's distribution center in Gwangju, Gyeonggi Province, on Aug. 13. Korea Times file
By Kim Jae-heun
Korea's largest logistics firm, CJ Logistics, plans to invest 2.5 trillion won by 2023 to foster its platform business and evolve into an innovative technology firm. It also plans to achieve a paradigm shift in the logistics industry.
“The logistics market is in a transition phase from labor-intensive to a digital structure. We need to transform into an innovative tech company that grows with customers,” CJ Logistics CEO Kang Sin-ho told employees in a congratulatory message to celebrate the company's 91st anniversary. CJ Logistics was established on Nov. 15, 1930.
“Our vast amount of warehouses may help us remain in the top tier of the market, but ultimately, they won't guarantee our future survival. We will seek innovative growth by hiring top talent and cutting-edge technologies in the field,” he added.
The platform business is one of four new growth engines that CJ Group mentioned for its mid-term vision. CJ Logistics will expand its interconnected fulfilment warehouses and increase automation through the use of robots at the centers, while adding artificial intelligence (AI) and big data systems to manage online business.
“CJ Logistics will strengthen data-based digital capabilities and provide consumer goods and e-commerce logistics services to both local and overseas markets as a total solution company,” Kang said.
CJ Logistics plans to expand the size of its warehouse infrastructure eightfold by 2023 and construct additional facilities to store packages at a temperature of 3 degree Celsius. The new distribution centers will be connected to three major warehouses in Yongin, Gunpo and Gwangju in Gyeonggi Province, to form a tighter nationwide network.
The logistics firm will expand its research center over the next two years. The research institute will select 12 core technologies for commercialization and create synergy with local startups.
CJ Logistics plans to hire about 800 new workers, while reorganizing its organizational structure to boost efficiency.
The company will streamline its employee rank system which categorizes them into seven different levels and give opportunities to all of its workers to become group leaders regardless of their age. It will establish a performance-based bonus system as well.
“CJ Logistics is 91 years old, but we have a goal of making it a young company. Beyond simply adapting to the changing environment, we will provide customers with advanced logistics technologies that exceed the level of global leaders through robots, AI and big data,” Kang said.