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South Korea’s CJ Logistics puts ₩ 2.5Tn towards digital transformation

South Korea’s CJ Logistics puts ₩ 2.5Tn towards digital transformation
South Korea’s CJ Logistics puts ₩ 2.5Tn towards digital transformation

CJ Logistics Corp., South Korea’s largest logistics firm, has reportedly announced that it plans to invest over ₩ 2.5 trillion (~US$2.1 billion) by 2023 to foster the company’s platform business, in order to progress as an innovative technology firm and achieve a paradigm shift in the logistics industry.

With the company celebrating its 91st anniversary, CEO Kang Sin-ho in a congratulatory message to the employees stated that as the logistics market transitions from being a labor-intensive field to a more digitalized sector, the company also needs to transform into an innovative tech company that grows with its customers.

CJ Logistics, the logistics arm of the South Korean conglomerate CJ Group, was founded on November 15, 1930.

Kang added that while the company owns many warehouses, which would help it stay in the top tier of the market, it still does not guarantee its future survival. CJ would employ top talent and cutting-edge technologies currently available in the field to ensure its survival and growth.

According to the reports, CJ Group’s mid-term vision includes platform business as one of its four new growth engines.

CJ Logistics would be expanding its interconnected fulfillment warehouses while also increasing automation with the use of robots at the centers. Meanwhile, Artificial Intelligence (AI) and big data systems would be added to manage its online business.

By 2023, the company plans on expanding the size of its warehouse infrastructure eightfold and construct new facilities to store its logistics freights at temperatures as low as 3 degrees Celsius.

In his message, Kang stated that CJ Logistics will focus on developing its data-based digital capabilities and provide logistics services of consumer goods and e-commerce as a total solution company, both locally and overseas.

The firm will also expand its research center over the course of the next two years, where 12 core technologies will be selected for commercialization, creating synergy with local startups.

Source credit: https://www.koreatimes.co.kr/www/tech/2021/11/419_318780.html

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.