160 Billion KRW Investment by End of Next Year, Expansion to 77 Locations
Large and Medium Products Use 'Wheel Sorter', Small Products Use 'MP Sorter'... Maximizing Productivity
[Asia Economy Reporter Yu Je-hoon] CJ Logistics has become the first in the industry to establish and officially operate a 'Small Parcel Delivery Automation System' that can efficiently handle small parcels, which account for 90% of the total delivery volume.
On the 7th, CJ Logistics announced that it will officially operate the 'Multi Point (MP)' automated facility dedicated to sorting small parcel delivery items. MP refers to a system where an additional sorting facility is installed in the existing delivery terminal, which was operated with a single work line, and operates simultaneously by dividing medium-to-large items on the first floor and small items on the second floor according to product size.
With the introduction of MP, CJ Logistics can omit the intermediate re-sorting process for small parcel items, thereby increasing the productivity of the hub terminal. The proportion of small parcel items (sum of length, width, and height not exceeding 100 cm) in CJ Logistics' total products reaches 87.3%.
Prior to this, CJ Logistics introduced the MP system in November last year and has been conducting pilot operations. Using delivery big data, it selected key regions where small parcels frequently occur and is currently operating in 27 locations. CJ Logistics plans to invest 160 billion KRW to install the system in a total of 77 locations by the end of next year.
The industry expects that the MP system introduced by CJ Logistics will create a synergy effect together with the 'Wheel Sorter,' an automatic sorter built in sub-terminals nationwide last year. The Wheel Sorter recognizes the barcode on the invoice attached to the product and automatically sorts delivery boxes by delivery area using small wheels installed on the container belt. Small items are automatically sorted by the MP sorter, and medium-to-large items by the Wheel Sorter, which reduces work time and increases accuracy, thereby maximizing productivity, the company explained.
A CJ Logistics official said, "We will successfully operate the MP system to smoothly respond to the increasing delivery volume and ensure that the public can maintain their daily lives stably," adding, "We will continue to invest in various smart logistics technologies to improve the convenience and efficiency of delivery workers and develop the delivery industry."
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