Ourhome Expands B2C Dedicated Automated Line at Logistics Center... Strengthening Contactless Response

Online Mall Order Shipments Increase 84% Year-on-Year... Sales Also Rise 114%

[Asia Economy Reporter Lee Seon-ae] Ourhome announced on the 12th that it has established and is now fully operating an automated line dedicated to online malls within its Gyeryong Logistics Center to smoothly respond to the rapidly increasing online mall orders.

As the impact of the novel coronavirus infection (COVID-19), which began in early last year, continues, non-face-to-face and online shopping trends have spread across industries, and non-face-to-face consumption has quickly taken root in the food industry as well.

Ourhome’s B2C product growth through its own online mall, ‘Ourhome Food Store Mall,’ is also remarkable. In 2020, sales of ‘Ourhome Food Store Mall’ more than doubled (114%) compared to the previous year, and shipment volume also increased by 84%. The best-selling product was ‘Ourhome Jirisan Water,’ followed by convenient meals such as soup, stew, and hot pot, kimchi products, and On The Go (frozen lunch boxes) in order of high sales volume.

Accordingly, to expand its online mall business, Ourhome began constructing an automated line dedicated to online malls at the Gyeryong Logistics Center, which handles B2C logistics, from the first half of last year and recently started full-scale operation.

First, Ourhome automated the previously manual process of packaging courier products by establishing an auto-taping and automatic invoice attachment system exclusively for courier products within the Gyeryong Logistics Center. In addition, by inputting products into the sorter line, a system was established that automatically classifies products and quantities by customer, significantly reducing sorting time and dramatically improving packaging productivity.

Previously, the shipping process, which proceeded mostly manually as ‘select box size per order > classify products and quantities > taping > print and attach invoice,’ has been greatly streamlined with the construction of the automated line system dedicated to the online mall. The reduction in product packaging, sorting, and inspection time, as well as minimizing movement paths, has greatly improved the work environment and convenience.

In particular, it has become possible to respond quickly and accurately to the increase in online orders. The productivity of the Gyeryong Logistics Center has improved by more than 240% compared to before, and along with cost reduction effects, customer complaints have decreased by 61%, enhancing delivery satisfaction.

Ourhome plans to actively respond to the increasing demand for online orders and expand investments related to logistics infrastructure by the end of this year to grow this business sector.

An Ourhome official said, “As the non-face-to-face consumption trend spreads, B2C sales and online order shipments centered on Ourhome Food Store Mall are greatly increasing. Since this consumption trend is expected to spread further, we will strive to strengthen logistics capabilities to process customers’ ordered products quickly and safely.”

Meanwhile, in addition to the Gyeryong Logistics Center, Ourhome has established a total of 14 logistics centers nationwide, including Dongseoul, Ansan, Yongin, Eumseong, Yangsan, Honam, and Jeju, and is stably distributing food and food ingredients to more than 10,000 clients nationwide. The entire process from receiving to delivery is operated under a cold chain system, and in 2019, it was recognized for its logistics competitiveness by being selected as the best cold chain company by the Korea Food Cold Chain Association. Also, based on solid logistics infrastructure, such as establishing a food ingredient-specialized automatic sorting system at the Dongseoul Logistics Center in 2016?the first in the industry?Ourhome is leading the food ingredient logistics industry.

This content was produced with the assistance of AI translation services.