CJ Logistics Redesigns Delivery Boxes Using Big Data... "Size Reduced by 10%"

[Asia Economy Reporter Yoo Hyun-seok] CJ Logistics announced on the 25th that it has reduced the average size of delivery boxes by 10% by applying the ‘Big Data Packaging’ technology to products at the Gunpo Fulfillment Center.

‘Big Data Packaging’ is CJ Logistics’ differentiated packaging technology that redesigns box sizes by combining volumetric data and order information for each product and uses optimized boxes tailored to each order. Previously, all fulfillment centers used the same type of boxes, but going forward, ‘center-specific customized boxes’ will be used.

CJ Logistics combined 11.2 billion possible cases based on the types and quantities of products ordered by consumers over three months to identify nine optimized box sizes. The optimized boxes are scheduled to be applied starting August at the Gunpo Fulfillment Center. Currently, about 75% of the boxes shipped from the Gunpo center are made on-site, while the rest are shipped using boxes requested by sellers.

When the size of delivery boxes decreases, the empty space inside the box also reduces. Less cushioning material is needed inside the box to protect the products. Along with this, CJ Logistics uses a system that automatically selects boxes that minimize empty space according to consumer orders and deploys them in logistics operations. This prevents unnecessary excessive packaging and enhances environmental benefits.

The reduction in box size is expected to further improve logistics efficiency. Boxes packed according to consumer orders are loaded onto large trunk vehicles at the fulfillment center and shipped to parcel hubs and sub-terminals nationwide. As the number of boxes loaded in vehicle cargo holds increases due to the smaller box size, more volume can be shipped in one trip. The loading efficiency of delivery vehicles operated by couriers also improves.

E-commerce logistics requires efficient handling of numerous orders that come in small quantities and various types. Therefore, most logistics companies use boxes of the same standard size rather than selecting boxes suitable for each consumer order.

In contrast, CJ Logistics has improved work efficiency while using optimized boxes through its ‘Smart Packaging’ system. Boxes are automatically formed by automated equipment without manual folding and immediately deployed to logistics sites. Workers set the desired box size in the system and place the box material in the equipment, which then automatically forms the box. After the product is placed inside, cushioning insertion, tape attachment, and invoice attachment are all performed without human intervention.

CJ Logistics plans to expand big data analysis to other fulfillment centers such as Gonjiam and Yongin and design and apply boxes optimized for the products at each center.

Nam Ki-chan, Management Leader of CJ Logistics TES Logistics Technology Research Institute, said, “Through systematic big data analysis, we expect to reduce box sizes and cushioning material usage, achieving both logistics efficiency and environmental benefits,” adding, “We will provide differentiated fulfillment services to sellers and consumers by utilizing innovative advanced logistics technologies.”