Naver and CJ Logistics Conduct AI Logistics Experiment... Gunpo and Yongin Centers Operational

[Asia Economy Reporter Bu Aeri] On the 20th, Naver announced that, together with CJ Logistics, it will open fulfillment centers in Gunpo and Yongin, Gyeonggi Province, following Gonjiam, and begin AI logistics experiments.

Fulfillment refers to integrated logistics management that handles everything from storing sellers' products to packaging, shipping, and delivery according to orders.

Naver stated, "Centered on the newly opened fulfillment centers, we will use the AI model 'Clova Forecast' to improve demand forecasting accuracy while advancing smart logistics including logistics, robotics, and eco-friendly packaging."

The two companies started operating a fulfillment center dedicated to room-temperature products with over 11,000 pyeong in Gunpo this month, and plan to open a 5,800-pyeong cold fulfillment center dedicated to fresh food in Yongin in August.

The newly opened fulfillment centers are equipped with infrastructure to experiment with smart logistics systems using digital technology.

Currently, 'Clova Forecast,' applied at the Gonjiam center, predicts Naver Shopping order volumes one day in advance, helping optimize workforce allocation and operational efficiency at logistics centers. The prediction accuracy is 95%. ▶Refer to our exclusive report on February 24 [Exclusive] Naver AI predicts CJ Logistics order volume... Strategic alliance intensifies for details.

Going forward, Naver plans to further advance the technology to predict order volumes by product for each seller and build logistics systems accordingly. Unmanned mobile robots will also be introduced on a trial basis to assist with logistics operations.

The two companies are also pursuing eco-friendly logistics. Using simulation-based stacking technology, boxes of appropriate sizes are automatically produced according to the size and bundling units of ordered products, and the optimal amount of cushioning material is automatically calculated by measuring empty space inside the box to prevent excessive packaging.

All packaging materials such as cushioning, tape, and pads will be replaced with recyclable paper materials to reduce plastic usage. At the Yongin center dedicated to refrigerated and frozen fresh products, the 'Cool Guardian System' is applied to maintain product freshness and store and deliver products in optimal condition by monitoring temperatures throughout the logistics center in real time, 24/7, 365 days a year.

The company stated that the AI logistics experiments are expected to expand business synergies with brand companies. Brands have the advantage of possessing large volumes and vast big data, enabling various logistics process experiments.

Currently, over 320 brands utilize Naver's technology and platform for everything from product sales through Naver Brand Store, planned live commerce using live commerce tools, to Brand Day offering maximum benefits 24 hours a day, covering sales to marketing. Naver plans to expand various experiments with brands to the small and medium-sized enterprise (SME) ecosystem in the future.

Through the operation of this fulfillment center, the service range and product categories of the 'Order Today, Deliver Tomorrow' service, previously conducted at the Gonjiam center, will also be further expanded.

Kim Pyungsong, Head of Naver Business Development Office, said, "By combining Naver's advanced AI technology with CJ Logistics' sophisticated logistics system, we will build an evolved AI logistics infrastructure that will reduce logistics-related burdens for sellers and allow them to focus on their business."