[Report] CJ Logistics GDC with 140 Robots Ships in Just 20 Minutes... A Visit

Health Shopping Mall 'iHerb' Logistics Base
Shipping to 4 Asian Countries Including Japan and Singapore
Automation and Efficiency Enhanced with Robots
"Committed to Securing Clients Beyond Saudi GDC"

On the afternoon of the 8th, at the CJ Logistics GDC (Global Distribution Center) located in the Free Trade Zone of Incheon International Airport. It is a logistics center that pre-stores products destined for countries around Korea and packs and ships them as soon as orders come in. Inside the GDC, there is a 16-level storage space resembling a 'jungle gym.' There are 76,000 baskets and 30,000 types of products here. 140 red robots move along the top of the space searching for baskets containing items. When observing how a basket on the 8th floor is retrieved, another robot had already moved seven baskets to a different location in advance. The robot took out the basket containing the items and handed it to the worker. After the worker transferred the products into boxes, the products flowed along a conveyor and were packaged. The time taken up to this point was only 20 minutes. Compared to the approximately one hour it took for a person to pick items from shelves and pack them, this is about one-third of the time.

AutoStore robots searching for items
Photo by Oh Kyumin moh011@

CJ Logistics expanded the Incheon GDC by about 6,264㎡ (1,895 pyeong) and introduced the state-of-the-art logistics robot system 'AutoStore' there. The company is the only one in Korea operating such a system. CJ Logistics announced that it will utilize this site as a global e-commerce forward base.

At CJ Logistics Incheon GDC, an AutoStore system has been introduced where 140 robots retrieve items from storage spaces resembling a 'jungle gym' and deliver them to workers.
[Photo by Oh Gyumin moh011@]

The Incheon GDC is a logistics center capable of storing over 5 million products. It is the largest among Asian logistics company GDCs. Products arriving from the United States by ship are stored at the GDC and then packed and air-shipped immediately upon orders from consumers in four countries: Japan, Singapore, Australia, and Kazakhstan. In other words, even if Japanese consumers order from a US site, they receive products shipped from Korea, not the US. This method reduces both logistics costs and delivery time. CJ Logistics is currently delivering iHerb products in this manner.

When the basket containing items retrieved by the robot is delivered to the worker, a box matching the size and quantity of the items also descends on the screen in front of the worker. The worker places the received items into the box according to the information of the consumer's order.
[Photo by Oh Gyumin moh011@]

The recently introduced AutoStore system moves robots in real-time to retrieve baskets containing items as soon as consumer orders come in and delivers them to workers. On the screen in front of the worker, an image of a box matching the size and quantity of the items appears. The consumer's order information is displayed on the screen, and the worker sorts the items and places them into the box accordingly. This system can also rearrange inventory by itself. Robots roam around and place frequently ordered items at the top of the 16-level storage space. Compared to the fixed metal shelving 'rack' method, the company explains that space efficiency is improved fourfold and outbound processing capacity increases by 2.8 times.

In the QPS system, when a box stops in front of the worker, the worker checks the order information displayed on the screen and then finds and places the product inside. At the same time the box arrives, the lamp on the shelf containing the product lights up, making it easy to locate the item.
[Photo by Oh Gyumin moh011@]

In addition to AutoStore, the Quick Picking System (QPS), classified as advanced technology, also enhances logistics efficiency. A box folding machine folds boxes according to the product type and quantity. Barcodes containing order information are printed on these boxes. Boxes with order information move along the conveyor. When they stop in front of the worker, the worker checks the order information displayed on the screen and finds and places the products inside. Simultaneously with the box's arrival, a lamp on the shelf containing the product lights up, making it easy to find the items. Currently, CJ Logistics applies QPS to products with high outbound rates because these items must be taken directly from the receiving area and shipped out. Conversely, items with low outbound rates are stored and quickly shipped via AutoStore.

Based on the operational know-how of the Incheon GDC, the company is building a GDC in Saudi Arabia together with iHerb. This GDC will be responsible for logistics and delivery in nine Middle Eastern countries, including Saudi Arabia, the United Arab Emirates (UAE), and Kuwait.

The global CBE (Cross Border Ecommerce) logistics market is expanding further based on GDCs. According to data from the UK logistics research firm Transport Intelligence (TI), the global CBE market size is expected to grow about 83.5%, from 97 trillion won in 2021 to 178 trillion won in 2026. During the same period, Korea's market is projected to increase about 21.4%, from 1.1 trillion won to 1.3 trillion won. In fact, CJ Logistics' GDC customer base is also expected to grow soon. Lee Kyung-jin, head of CJ Logistics' CBE operations team, stated, “There are overseas global companies interested in the GDC, and we are currently in contact with several potential customers.”