NongHyup Central회장 Lee Seong-hee Marks 1st Anniversary in Office: "I Will Create a Distribution Revolution"

Lee Seong-hee, Chairman of the National Agricultural Cooperative Federation (NACF), visited the NACF Seongnam Distribution Center, where the Digital Fulfillment Center (DFC) system was applied for the first time, on the 22nd to review the digital transformation status.

[Sejong=Asia Economy Reporter Kim Hyunjung] Lee Seonghee, chairman of the NongHyup Central Association, who marked his first anniversary in office, expressed a strong commitment to reforming the distribution system centered on online channels. On the 22nd, Chairman Lee visited the Seongnam Distribution Center, where the Digital Fulfillment Center (DFC) system was applied for the first time in NongHyup's online business, to check the digital transformation status of economic business sites.

The newly attempted DFC is a dedicated space separately prepared within existing offline stores to process online orders. NongHyup introduces it as a store type combining sales floors, exhibition halls, warehouses, and delivery centers.

Through the DFC, when customers order products online, employees pick the products from the store, move them using lifts and ceiling rails installed inside the store to the sorting area. At the sorting area where the products arrive, the items are distributed and packed by order, then allocated to vehicles by delivery zones, enabling delivery to customers. This significantly enhances the competitiveness of Hanaro Mart's online delivery service.

Additionally, the picking and packing tasks, which were previously done manually, will be greatly improved, making it possible to implement fresh delivery within two hours from order to delivery and on-time delivery (reservation delivery) services that allow customers to receive their orders at their desired time.

The DFC established at the Seongnam Distribution Center is one of the 66 tasks for agricultural and livestock product distribution innovation announced at the 'Resolution Meeting for Proper Agricultural and Livestock Product Distribution Innovation' held last November. It is a project at the intersection of the distribution revolution and digital innovation emphasized by Chairman Lee since early this year, and NongHyup plans to strengthen the competitiveness of the online retail sector for agricultural and livestock products through this.

In response to the rapid growth of the online industry due to changes in the market environment caused by the novel coronavirus disease (COVID-19), NongHyup is promoting the DFC construction to transform existing offline stores into logistics hubs for online delivery. In particular, the Seongnam Distribution Center DFC will be stabilized early and applied to 11 distribution centers within this year, starting with the Goyang branch in March.

Lee Seonghee, chairman of the NongHyup Central Association, said, "The DFC is an online store delivery system optimized for the increase in non-face-to-face consumption after COVID-19, and we will expand it further to create synergy between online and offline." He added, "We will successfully establish the Seongnam Distribution Center DFC and create a major transformation in agricultural and livestock product distribution that makes both farmers and consumers smile."

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