KCCI Holds Joint Meeting of Distribution and Logistics Committee... Seeking Success Strategies for the 'Big Blur Era'

Joint Meeting at Lotte Hotel Seoul on the 2nd
50 Attendees Including Jung Jun-ho, Chairman of KCCI Distribution Committee
"Risk and Opportunity Simultaneously... AI Strategy is the Key"

Amid the ongoing 'Big Blur' phenomenon, where boundaries between industries are disappearing, and growing uncertainty due to high inflation and high interest rates, domestic distribution and logistics companies came together to seek future success strategies.

Korea Chamber of Commerce and Industry Logo

On the 2nd, the Korea Chamber of Commerce and Industry held a joint meeting of the Distribution and Logistics Committee at Lotte Hotel Seoul in Jung-gu, Seoul, under the theme "Success Strategies for Distribution and Logistics Companies in the Big Blur Era."

The meeting was attended by about 50 CEOs from distribution and logistics companies, including Jeong Jun-ho, Chairman of the Korea Chamber of Commerce and Industry’s Distribution Committee (Head of Lotte Shopping Department Store Division), Shin Young-soo, Chairman of the Logistics Committee (CEO of CJ Logistics), Park Il-jun, Executive Vice Chairman of the Korea Chamber of Commerce and Industry, as well as Park Jin-sun, CEO of Sempio Foods, Jin Jae-seung, CEO of Yuhan-Kimberly, and Kim Jae-myeon, Chairman of the Korea Super Chain Distribution Cooperative.

Jeong, who co-chaired the meeting as the Distribution Committee Chairman, said, "The current situation where the distribution industry is facing difficulties due to rapid changes in the business environment is both a risk and an opportunity," adding, "Establishing strategies utilizing new innovative technologies such as generative artificial intelligence (AI) and data will be the key to success."

Shin, the Logistics Committee Chairman, also forecasted, "In a situation where digitalization is accelerating, the introduction of smart logistics systems will determine future competitiveness."

Experts in distribution and logistics also gave presentations on success strategies in the Big Blur era. Professor Seo Yong-gu of Sookmyung Women’s University (former president of the Korea Distribution Science Association), who gave a lecture, emphasized, "With the recent development of innovative technologies such as AI, the boundaries between industries are dissolving, and the boundaries between distribution and logistics are also disappearing," adding, "The distribution and logistics industries must quickly respond to changes in technology, society, and consumers to survive."

Professor Seo said, "For this, convergent thinking and innovation in the distribution and logistics sectors are essential," and "To succeed in the Big Blur era, data-driven decision-making based on new technologies and statistics is necessary."

Professor Kwon Oh-kyung of Inha University (former president of the Logistics Society) said, "The role of logistics companies in e-commerce is shrinking, and distribution companies are rather leading logistics," adding, "In the digital gold rush era where information technology (IT) and platforms absorb all businesses, logistics companies need to aim for the 'Pick and Shovel' effect."

The Pick and Shovel effect originates from the 19th-century gold rush, where selling pickaxes and shovels brought more stable profits than mining gold itself, meaning logistics companies should find new revenue models by supporting distribution companies.

Professor Kwon added, "There are new business opportunities in direct purchase and reverse direct purchase, management of logistics in e-commerce, execution, and fulfillment (integrated logistics) areas," and "As this is an important moment when logistics companies’ revenue sources are diversifying, the logistics industry must implement strategies suited to their strengths through digital transformation."

Executive Vice Chairman Park said, "As boundaries between industries become blurred, distribution and IT companies are expanding into logistics businesses, and at the same time, new opportunities are arising for logistics companies," adding, "Taking this event as an opportunity, the committee will proactively present changes in the distribution and logistics industry and serve as a compass to gauge the direction the industry should take."