CJ Logistics launches fulfillment outsourcing with LG Household as its first client

[Photo provided by CJ Logistics Corp.]

South Korea’s top parcel delivery service company CJ Logistics Corp. has launched fulfillment outsourcing, a move that could bring further life and speed to ecommerce habitat.

Its first client is the country’s biggest household and beauty name LG Household & Health Care.

Under the partnership, CJ Logistics starts the 24-hour parcel delivery service for buyers of LG Household & Health Care products on Naver’s online shopping platform.

Ecommerce fulfillment involves the entire process of getting an order delivered, including receiving and storing inventory, processing orders, pick and pack, and shipping.

CJ Logistics with its mega hub terminal in Gonjiam, Gyeonggi Province is able to handle 1.7 million parcels a day with its automatic parcel distribution system, employed also to other 170 fulfillment centers across Korea.

The centers reduce the distance a package travels, enabling delivery to start at 10:00 a.m. for orders made before midnight a day earlier – the 24-hour shipping option to the online shopping carts on Naver platform.

Typically, orders before 3:00 p.m. are delivered to customers the next day, and those after 3:00 p.m. two days later in Korea.

CJ Logistics expects the service will accelerate the growth of ecommerce fulfillment in Korea. The country’s fulfillment market is estimated to grow to 1.88 trillion won ($1.54 billion) this year and 2.3 trillion won by 2022, according to eBest Investment & Securities.

“We’ve built the Gonjiam mega hub in a preemptive move to lead the burgeoning e-commerce fulfillment market. We’ll keep up efforts to expand related services to add more customer convenience and boost the e-commerce,” said an official at CJ Logistics.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]