Order and Delivery 'One-Stop'... POSCO Begins Construction of Korea's First Fulfillment Center for Manufacturing Industry

Introduction of 'Fulfillment' Concept in Steel Mill Material Procurement
90 Billion Won Investment... Scheduled for Completion in December Next Year

POSCO held a groundbreaking ceremony for the 'POSCO Eco-Friendly Fulfillment Center' at the Gwangyang National Industrial Complex on the 3rd. (From left) Kwon Kyunghwan, Head of POSCO ICT Gwangyang EIC Business Office; Hwang Euijun, CEO of Gukto Construction; Yeom Dongil, Head of Jeonnam Regional Headquarters of Korea Industrial Complex Corporation; Baek Seongho, Vice Chairman of Gwangyang City Council; Joo Sunseon, Deputy Mayor of Gwangyang; Lee Jutae, Head of POSCO Purchasing and Investment Headquarters; Lee Baekgu, Chairman of Gwangyang Chamber of Commerce and Industry; Go Chanju, Deputy Head of Equipment at POSCO Gwangyang Steelworks; Lee Cheolmu, Head of POSCO Investment Engineering Office; Kim Taeok, Head of POSCO Equipment and Materials Purchasing Office. Photo by POSCO

[Asia Economy Reporter Choi Seoyoon] POSCO is establishing an eco-friendly fulfillment center that integrates logistics services from material ordering to inventory management and delivery, becoming the first in the domestic manufacturing industry to do so.

On the 10th, POSCO announced that it held a groundbreaking ceremony for the ‘POSCO Eco-friendly Fulfillment Center’ at the Gwangyang National Industrial Complex in Jeollanam-do on the 3rd. Fulfillment generally refers to a service that integrates logistics-related tasks such as ordering, storage, packaging, delivery, collection, and returns processing. About 50 people attended the event, including Joo Soonseon, Deputy Mayor of Gwangyang, Baek Seongho, Vice Chairman of Gwangyang City Council, Yeom Dongil, Head of the Jeonnam Regional Headquarters of the Korea Industrial Complex Corporation, Lee Baekgu, Chairman of the Gwangyang Chamber of Commerce and Industry, Hwang Euijun, CEO of Land Construction, and POSCO executives and employees.

The fulfillment center will be built in the Myeongdang 3 District of the Gwangyang National Industrial Complex. It is located about 4 km from the steel mill, providing excellent accessibility for both the steel mill and suppliers, enhancing logistics convenience. The project site covers approximately 50,000㎡, equivalent to the size of seven soccer fields. A total investment of 90 billion KRW will be made, with completion scheduled for December next year.

First, POSCO will integrate about 300 material warehouses currently operated separately by each factory within the Gwangyang Steelworks into one. This will improve inefficiencies caused by duplicate inventory costs due to identical materials being stored individually in each warehouse, prevent material degradation due to inadequate management, and secure material integrity. It will also address worker safety issues caused by cramped spaces due to warehouse overcrowding and block ethical risks that may arise from dispersed management by integrating inbound and outbound management into one place. Additionally, by incorporating smart technologies, POSCO plans to provide total services such as more efficient inventory management and faster delivery.

Ordering and receiving procedures will be digitized first. Artificial Intelligence (AI) will analyze material usage patterns autonomously and automatically order necessary materials. Using cutting-edge equipment such as logistics robots, material storage and retrieval tasks will also be automated. A Warehouse Management System (WMS) will be introduced to enable smart inventory management by real-time monitoring of inventory status and optimizing storage locations, retrieval, and delivery methods.

The integrated service provision across logistics will also enhance user convenience. Users can check inventory and complete the entire material ordering process with one click via their smartphones. Information is transmitted to the fulfillment center simultaneously with the order, and materials are immediately delivered to the site where they are needed. The fulfillment center will operate a 24-hour material mobilization supply team to respond to unexpected situations at night and will also be responsible for material returns. Solar power generation facilities will be installed to make the center a self-sufficient, eco-friendly innovative logistics center in terms of power supply.

POSCO plans to strengthen operational competitiveness through resource efficiency such as inventory reduction by building an eco-friendly smart integrated logistics center, improving logistics processes using smart technology, and expanding user convenience through integrated service provision.

Meanwhile, to ensure successful project implementation and revitalize the local economy, POSCO signed an investment agreement (MOU) for the ‘POSCO Eco-friendly Fulfillment Center Construction’ with Jeollanam-do and Gwangyang City on the 25th of last month.

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