"Yakult Ajumma Delivers" hy Enters Logistics Market

[Asia Economy Reporter Lim Hye-seon] Distribution specialist company hy is entering the logistics market by launching a new business, the ‘logistics agency service’.

hy announced on the 1st that it will start the Predit delivery service from this month. The main point is providing its own delivery infrastructure to other companies. hy already operates a nationwide cold chain delivery network utilizing over 600 logistics hubs and refrigerated carts.

Its unique ‘last-mile delivery’ is also a competitive advantage. The 11,000-strong Fresh Manager team can meet increasingly diverse customer demands through two-way communication and customized delivery.

The first partner is ‘Cheongdameun’, which owns the eco-friendly baby food brand ‘Farm to Baby’. Under a consignment contract, Fresh Managers deliver refrigerated baby food ordered through Farm to Baby’s own mall and open markets. The manufacturer is responsible only for production and shipment, after which delivery to customers is handled through hy’s logistics system. Although hy has previously sold other companies’ products through direct purchase, this is the first time it shares the distribution network itself.

The partner company cited the cold chain delivery system and subscription service as the background for collaboration. In fact, freshness is crucial for kids’ products, which often involve small quantity and frequent orders. hy’s unique method of placing products in refrigerated carts and delivering them on designated dates and times fits this need. They also emphasized that it is an eco-friendly delivery that requires no additional packaging for refrigerated shipping.

hy expects continued strong demand for fresh food and anticipates many inquiries for the Predit delivery service, given the enormous costs involved in building refrigerated delivery networks.

Based on this business expansion, hy plans to challenge the fulfillment business (integrated handling of product storage, packaging, shipment, and delivery) in the future. They are reviewing the introduction of local delivery services in cooperation with small business owners at the regional level, along with building an integrated IT system and expanding logistics infrastructure.

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