"Enhancing Logistics Competitiveness of Small and Medium Supermarkets"... 8.7 Billion Won Busan Dongbu Logistics Center Opens

Asia Economy DB=Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Bo-kyung] The logistics center established by Busan City and the Busan Dongbu Supermarket Cooperative to strengthen the competitiveness of small and medium-sized supermarkets has officially begun operations.

According to the Korea Federation of SMEs on the 29th, the opening ceremony of the 'Busan Dongbu Small Distribution Joint Wholesale Logistics Center' was held in Geumsa-dong, Busan. About 30 people attended the event, including Kim Ki-moon, chairman of the Korea Federation of SMEs, Park Hyung-jun, mayor of Busan, Baek Jong-heon, member of the People Power Party, Jung Mi-young, head of Geumjeong District Office, and chairpersons of supermarket cooperatives from various regions.

The Small Distribution Joint Wholesale Logistics Center is a logistics facility jointly established by small and medium-sized business organizations (retailers with 50 or more members or wholesalers with 10 or more members) to reduce distribution and logistics costs for small business owners.

To enhance the competitiveness of small and medium distribution companies, the center jointly promotes ▲ joint logistics services such as storage, delivery, and packaging of products ▲ product planning, development, joint purchasing, and exhibitions ▲ collection, processing, and provision of information using distribution logistics information systems. In particular, logistics costs are reduced by up to 30% through the reduction of distribution stages.

Busan City and the Busan Dongbu Supermarket Cooperative have jointly promoted the construction of the logistics center to strengthen the competitiveness of small and medium-sized supermarkets. When the existing Dongbu logistics center site was included in a housing reconstruction and maintenance project zone, the relocation of the logistics center was pursued with a total project cost of 8.5 billion KRW. After completion in March last year and additional construction, the center completed a one-year pilot operation and plans to begin full-scale operations.

The Dongbu Logistics Center supports businesses located in seven districts including parts of Busanjin-gu, Dongnae-gu, and Nam-gu. The number of handled products reaches about 6,000, and the number of member stores is about 1,000. In the entire Busan area, three centers including the Dongbu Logistics Center, the Bukbu Logistics Center, and the Saha Logistics Center are in operation.

Chairman Kim said, "As COVID-19 has prolonged, the gap between large and small-medium enterprises in distribution has widened the most," and emphasized, "The Small Distribution Logistics Center should take the lead in reducing purchase costs and establishing a rapid delivery system to strengthen the competitiveness of local small and medium distribution businesses."

Park Hyung-jun, mayor of Busan, expressed expectations, saying, "The opening of the Dongbu Logistics Center will strengthen the self-sustainability of small business owners, serve as a customized policy considering the rapidly changing distribution environment, and lay the foundation for the stable base of small and medium supermarkets."

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