CJ Logistics to introduce guaranteed next-day delivery service from April

By Hong Sung-yong and Yoon Yeon-hae, Pulse News - CJ Logistics Corp. will introduce a new service that guarantees delivery by the next day starting next month and will go head on against Coupang Inc., a South Korean e-commerce company which created an economy of scale in logistics with its own next-day delivery service.

The next-day delivery service has become a trend in the Korean distribution industry in recent years. Since 2014, Coupang has been running Korea’s first next-day delivery service, Rocket Delivery, and SSG.Com Corp., the e-commerce brand of Korea’s retail giant Shinsegae Group, has been operating SSG Delivery specializing in grocery shopping. 11Street Co., the e-commerce platform under the nation‘s top mobile carrier SK telecom Co., has been running Shooting Delivery, which posted record sales last year.

The new service developed by CJ Logistics, however, is different from the others, as it guarantees delivery by the next day and provides compensation if the delivery is not made the next day according to the South Korean logistics company on Thursday.

“We provide services tailored to the seller’s operational situation and the order deadline varies for each product,” said a CJ Logistics official. When a seller requests the entire logistics process, the fulfillment center operated by the company carries out all tasks including storage, inventory management and packaging for ordered products by midnight every day, and then delivers them to customers the next day through a nationwide delivery infrastructure.

On the other hand, if a seller does not store its products in the fulfillment center and only requests their delivery, a large transport vehicle is sent to the seller at the agreed time, or a driver visits and collects the products, which will be delivered to customers the next day after moving to various parts of the country through courier hub terminals and sub-terminals at dawn.

This new service is carried out through a business-to-business transaction between CJ Logistics and sellers, but if the service stabilizes, it will also be of great help to buyers as they can receive their ordered goods through fast and accurate delivery.

This service is made possible by CJ Logistics’ advanced logistics technology. The company has increased its work efficiency by introducing automated guided vehicles and eco-friendly paper-based buffer packaging robots to its fulfillment centers. The company also utilizes its big data analysis technology and manages inventory by arranging products with high orders and high work frequency close to the work space.

The company also uses artificial intelligence chatbots in the customer app so that it can respond to customer inquiries in real time, 365 days a year, instead of busy delivery drivers, according to a CJ Logistics official.

Earlier this month, CJ Logistics launched an integrated delivery brand O-NE to provide fast and accurate delivery services. Korean consumers will be able to receive what they purchased from AliExpress, an online retail service based in China, in three to five days, instead of the current one to two weeks. In addition, the company plans to launch a Sunday O-Ne service that allows consumers to receive what they purchased even on Sundays.

Source: https://pulsenews.co.kr/view.php?sc=30800021&year=2023&no=230450 

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