Minimizing Delivery Delays by Distributing Deokpyeong Logistics Center Volume to Other Logistics Centers
[Asia Economy Reporter Kim Cheol-hyun] A fire at Coupang’s Deokpyeong Logistics Center in Icheon, Gyeonggi Province, has triggered an emergency for Coupang’s metropolitan area deliveries. Coupang plans to minimize delivery delays by utilizing other logistics centers, but if the gap caused by the large logistics center’s closure prolongs, some delivery schedules are expected to be inevitably disrupted. Furthermore, once the investigation results regarding the cause of the fire are released, issues related to logistics center safety management may arise, suggesting that Coupang’s emergency situation due to the Deokpyeong Logistics Center fire could continue for some time.
On the 18th, Coupang stated that the shipments being handled at the Deokpyeong Logistics Center, where the fire occurred, are being distributed to other centers to minimize customer inconvenience caused by delays in order deliveries. The Deokpyeong Logistics Center was previously closed last year due to a COVID-19 outbreak. When a logistics center is closed, product shipments become impossible. At that time, Coupang dispersed the volume handled by the Deokpyeong Logistics Center to nearby centers to prevent delivery delays. Based on this experience, they are currently responding to the situation.
However, since Coupang’s Deokpyeong Logistics Center, along with the Incheon Logistics Center, has been the core of ‘Rocket Delivery’ in the metropolitan area, concerns are rising that if the gap lasts long, other logistics centers may become overloaded. The Deokpyeong Logistics Center is a ‘mega center’ with a total floor area of 127,178.58㎡, consisting of 4 above-ground floors and 2 basement levels. It serves as one of the hub centers mainly for metropolitan area deliveries and some regional shipments. It handles general products excluding fresh food and is known to be the largest among Coupang’s logistics centers.
Depending on the investigation results regarding the cause of the fire, Coupang’s safety management issues may also come under scrutiny. Inspections are expected to be conducted on whether fire-fighting equipment operates properly in logistics centers where flammable materials such as paper boxes and vinyl used for packaging are abundant. If management problems are revealed, it could be a significant blow to Coupang, which has been focusing on safety management. Coupang recently appointed Yoo In-jong, an industrial safety expert and the first executive from Samsung Group’s safety management field, as a new registered director, showing their commitment to safety management.
On the same day, the Coupang Logistics Center Branch of the National Logistics Center Branch of the Public Transport Union stated, “Logistics centers store many flammable items such as paper boxes, and evacuation routes are not secured in case of fire, making the site always vulnerable to major accidents,” urging for accountability regarding the Deokpyeong Logistics Center fire accident and the establishment of measures to prevent recurrence.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
