"Forget Simple Shipping Agency"… Mesh Korea's 'Vroong' Emerges as a Leader in Logistics Tech

Increasing Corporate Demand for Logistics System and Network Integration
Implementation of Integrated Functions Like Amazon Web Services in Distribution Logistics Sector

[Asia Economy Reporter Kim Cheolhyun] Mesh Korea is gaining attention by leading smart logistics innovation that combines IT technology with the traditional logistics industry. Originally, logistics was a field where manufacturers and distributors handled it directly or used courier companies for small packages, but with Mesh Korea's 'Booroong' at the forefront, newly established logistics companies equipped with IT technology are expanding the market share, growing the third-party logistics market.

According to Mesh Korea on the 19th, the IT-based comprehensive distribution logistics brand 'Booroong' achieved sales of 100 billion KRW in the second quarter of this year, a 36% increase compared to the same period last year, showing rapid growth. This is attributed to infrastructure integrating logistics-storage-packaging-delivery areas and production-inventory management-order areas, IT logistics solutions, and commerce tech.

Recently, as companies have shown increased interest in third-party logistics to optimize and improve cost efficiency of distribution logistics and to integrate logistics systems and networks, the number of Booroong’s customers has significantly increased. Currently, 603 corporate customers use Booroong’s smart logistics solutions, which is a 55% increase compared to the same period last year.

In addition, Booroong has secured physical infrastructure including over 520 directly operated logistics hubs nationwide, 4 fulfillment centers in the metropolitan area, more than 110,000 delivery personnel, and over 650 directly operated 4-wheel trucks, connecting these with digital technology to build an integrated distribution logistics system based on artificial intelligence (AI) and big data. The IT integration of distribution and logistics has enabled data-driven decision-making such as organic online-offline inventory management and demand-supply forecasting necessary for management efficiency.

Based on this, customers using Booroong do not need to invest significant capital in securing separate logistics hubs, delivery vehicles, delivery networks, integrated IT systems for distribution logistics, or operational personnel, resulting in cost reduction effects. Choi Byungjun, Head of Domestic Business Division at Mesh Korea, said, "After 10 years of effort, we have established ourselves as one of the very few companies capable of providing a single integrated IT-based solution covering distribution and logistics," adding, "With just the simple choice of collaborating with Mesh Korea Booroong, manufacturers can focus on manufacturing as manufacturers, and sellers can focus on selling without worrying about logistics, creating a business structure that allows them to concentrate on their core business."

Another reason Booroong is gaining attention is that it has been innovating Korea’s logistics industry, which is focused on offline systems and characterized by inefficiency and high costs, through IT technology. In fact, Booroong connects the entire process from logistics-storage-packaging-delivery in a one-stop manner and accelerates the digital transformation of the entire logistics process. In particular, Booroong actively develops and applies smart solutions using real data in the logistics field, equipping itself with AI, big data, location-based automatic dispatch systems, optimal route transportation systems, and integrated order management systems combining distribution and logistics. Based on these innovations, Booroong won the grand prize in the Smart Logistics Solution category at the '2022 National Service Awards.'

Especially, the AI and big data-based 'Booroong TMS' analyzes delivery drivers’ current locations, types of tasks performed, and expected delivery quality to provide automatic dispatch and optimal routes, thereby improving delivery drivers’ productivity and profitability. It also allows users to view statistics on driving distances and delivery performance at a glance and offers functions to easily manage various key data necessary for logistics business.

To provide an IT-based comprehensive distribution logistics solution beyond simple delivery, Mesh Korea recently appointed Lee Jongseon, Chief Technology Officer (CTO) with expertise in integrated platform development. This CTO is developing the next-generation Booroong system. He said, "Over the past 10 years, we have achieved digital transformation of logistics and built an IT-based system that spans logistics and distribution, attracting customers from various industries," adding, "Booroong’s service will have integrated functions like Amazon Web Services, providing customized services tailored to the needs of diverse customers."

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