CJ Logistics Applies 'Optimization Algorithm' to Transport Vehicles... Maximizing Operational Efficiency

Practicing Green Logistics through Logistics Network Optimization

[Asia Economy Reporter Dongwoo Lee] CJ Logistics announced on the 5th that it is optimizing its logistics network through a big data-based cutting-edge ‘Transportation Consolidation Algorithm System.’

The ‘Transportation Consolidation Algorithm System’ is a system that analyzes big data of transportation vehicles (large trucks) traveling between hub terminals, sub-terminals, logistics centers, and logistics bases to provide the most efficient transportation network and operational information.

Unlike the existing methods operated by simple matching programs or human experience, the ‘Transportation Consolidation Algorithm System’ provides a solution that comprehensively analyzes information related to transportation vehicles such as origin, destination, travel distance, vehicle size, cargo information, and cargo volume.

In particular, through network optimization, it is possible to minimize the empty travel distance of vehicles running without cargo, and by reducing the total travel distance of transportation vehicles, it enables the practice of green logistics by decreasing carbon emissions. Additionally, based on big data, it is possible to analyze and predict the required number of fixed and temporary vehicles, maximizing operational efficiency.

CJ Logistics is applying and utilizing this ‘Transportation Consolidation Algorithm System’ in various businesses such as parcel delivery and contract logistics. Moreover, the system has been introduced to CJ Dasul, India’s largest transportation company, optimizing truck transportation routing and networks traveling between logistics centers, logistics bases, and clients.

The ‘Transportation Consolidation Algorithm System’ was independently developed by CJ Logistics’ TES Logistics Technology Research Institute, and two domestic patents related to the system were acquired last year. It is also expected that the patent filed in the United States will be certified within this year.

A CJ Logistics official said, “We are changing the paradigm of the logistics industry through the introduction of cutting-edge systems and technologies based on the TES Logistics Technology Research Institute,” and added, “As a global integrated logistics company, we will strive to spread these advanced logistics systems overseas and enhance the status of K-logistics.”