Park Mansu, Executive Director of the Future Business Promotion Center at Hyundai Glovis (left), is taking a commemorative photo after signing an exclusive domestic distribution rights contract with Santech Ko, General Manager of the Asia-Pacific region at Swisslog, a global logistics equipment specialist.
[Asia Economy Reporter Hyunseok Yoo] Hyundai Glovis is set to actively target the high-growth smart logistics market alongside advancements in 4th Industrial Revolution technologies.
Global SCM specialist Hyundai Glovis announced on the 1st that it will promote its "Smart Logistics Solution" business, which involves building and operating advanced logistics technologies at clients' logistics centers.
The Smart Logistics Solution refers to a business that applies various IT technologies such as artificial intelligence (AI), big data, and robotics throughout the entire logistics process, including transportation and management, to achieve optimal efficiency. Due to industry growth and the expansion of e-commerce, the demand for larger and more advanced logistics centers is increasing, leading to rapid growth in the smart logistics market.
Accordingly, Hyundai Glovis plans to offer total solutions covering the entire process of building smart logistics centers, including smart logistics consulting, automation equipment introduction, and system development for its clients. For clients who want integrated operations after building smart logistics centers, the company also plans to provide advanced operational services.
The smart logistics solution business promoted by Hyundai Glovis is characterized by encompassing all areas from logistics center equipment to system construction and operation.
After diagnosing and consulting on clients' logistics centers, Hyundai Glovis proposes optimization plans, then introduces solutions such as smart equipment installation and engineering. To ensure stable implementation of logistics center design, equipment introduction, and logistics solutions, it provides all necessary services tailored to clients, including automation-based operation verification through simulation.
In particular, Hyundai Glovis plans to directly operate smart logistics centers. Unlike existing operators, Hyundai Glovis possesses differentiated competitiveness with over 20 years of know-how and capabilities in directly operating logistics centers.
Hyundai Glovis is also strengthening its business competitiveness through partnerships with global companies. Recently, Hyundai Glovis signed an exclusive domestic distribution contract for automation equipment with Swisslog, a global logistics equipment manufacturer, aiming to differentiate its solution technologies.
Founded in 1900, Swisslog is a global automation equipment manufacturer supplying smart logistics equipment to companies across more than 50 countries and various industries, helping improve corporate productivity. As of 2020, its annual sales were approximately $650 million. It is known to be among the top 10 global logistics automation companies and holds the world’s number one competitiveness in automated warehouse systems.
Through this contract, Hyundai Glovis secured exclusive domestic sales rights for two types of automated warehouse equipment from Swisslog, including "PowerStore" and "CycloneCarrier." These systems automate the storage and retrieval of goods in logistics warehouses using unmanned transport systems.
Going forward, Hyundai Glovis plans to enhance various automation equipment control solutions and build Swisslog’s automation equipment for clients wishing to establish smart logistics centers, thereby increasing the productivity of clients’ logistics centers.
Hyundai Glovis expects the global smart logistics center market to grow from $29.6 billion in 2018 to $47.6 billion in 2023, with an average annual growth rate of 11.5%. The domestic market is also projected to reach about 1 trillion KRW by 2025.
To expand its business, Hyundai Glovis has selected six major target industries?manufacturing, distribution, food and beverage, pharmaceuticals, and others?and plans to actively pursue them. The mid-term goal is to achieve a 30% domestic market share through this business. In the long term, the company aims to expand sales globally by conducting sales activities targeting new clients overseas. It will establish and expand a dedicated organization composed of professional logistics consultants, IT developers, and engineers to provide optimal solutions to customers.
A Hyundai Glovis official stated, “By providing smart logistics solution services that will lead innovation in logistics centers, we will contribute to the success of our clients’ logistics operations,” adding, “We plan to showcase differentiated competitiveness through unique business models and securing core capabilities going forward.”
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