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Naver, CJ Logistics Taps Into Next-Day Delivery Service with AI Logistics

Hayoon Kim by Hayoon Kim
PUBLISHED: June 22, 2021 UPDATED: June 24, 2021
in AI, Naver, Tech Industry
0
Naver partners with CJ Logistics to establish fulfillment centers and launch next-day delivery services, further improving the domestic e-commerce industry.
Naver partners with CJ Logistics to establish fulfillment centers and launch next-day delivery services, further improving the domestic e-commerce industry.

Naver partners with CJ Logistics to establish fulfillment centers and launch next-day delivery services, further improving the domestic e-commerce industry.

Naver Corp. announced that it had strategically teamed up with CJ Logistics to launch next-day delivery services. Moreover, the two companies established a comprehensive e-fulfillment hub in Gyeonggi Province’s Gunpo. The new e-fulfillment center has also started operations, advancing Naver’s next-day delivery venture.

Speeding Up Deliveries

The five-story Gunpo center contains a 38,400 square meter floor space. Naver and CJ Logistics’ e-fulfillment hub also covers the complete logistics process, including storage, managing, packaging, and shipping content. Additionally, the e-fulfillment center would mainly focus on items ordered online.

Naver employed a logistics process utilizing the newest logistics solutions, including the eFLEXS, a cloud-based dispatch management software, and MPS. The Gunpo center would also utilize intelligent, eco-friendly packaging technologies. In addition to applying artificial intelligence (AI) logistics solutions, Naver’s technologies use minimal packaging amounts and recycle paper materials.

In August, Naver and CJ Logistics plans to launch a c-fulfillment hub with a 19,174 square meter floor space in Yongin, Gyeonggi Province. Naver also equipped the c-fulfillment center with a cold chain system specializing in storing chilled and frozen products efficiently.

Furthermore, Naver would open the c-fulfillment center as part of its plan to speed up delivery process time. The two new fulfillment hubs would enable delivery drivers to send products to Gyeonggi Province’s main logistics center rapidly.

As a result, Naver and CJ Logistics could provide next-day delivery services, allowing customers to promptly receive packages after placing orders on Naver’s shopping platform. Besides addressing customer needs, Naver’s fulfillment centers improve domestic e-commerce services by reducing delivery time.

Separately, the new logistics partnership between the two companies came after they signed a share-swap agreement in October 2020. Naver and CJ Group’s 600 billion-won ($529 million) share-swap deal also demonstrates their commitment to enhancing South Korea’s e-commerce industry.

CLOVA Forecast

Naver also announced its plan to conduct trials in the Gunpo and Yongin fulfillment centers for its in-house developed solutions. In particular, Naver would equip the two facilities with CLOVA Forecast, further improving their capabilities.

CLOVA Forecast is an AI-based technology that accurately predicts logistics demand, sales forecast, and order volume processing. Aside from CLOVA Forecast, Naver would deploy autonomous robots to both centers, increasing logistics assistance and heightening efficiency.

Check out other must-read articles from KoreaTechToday:

  • Naver Introduces World’s Largest Korean Language AI Model HyperCLOVA
  • Naver D2SF Invests in Logistics Techtaka, Digital Healthcare Medibloc
  • KT Continues to Accelerate Its ā€˜Digico’ Transformation
  • Naver, Shinsegae Partner to Strengthen Next-Gen E-Commerce Network
Tags: AIAI LogisticsCJ LogisticsClovaE-commercee-fulfillmentNaver

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