'Cousin Alliance' in Full Swing... CJ Logistics to Deliver 50 Million Shipments Annually for Shinsegae

Gmarket Takes Charge of SSG.com Inventory
Also Discussing Plans to Handle Emart B2B Inventory

The "cousin alliance" between Lee Jae-hyun, Chairman of CJ Group, and Chung Yong-jin, Chairman of Shinsegae Group, is set to intensify. CJ Logistics is expected to handle at least 50 million deliveries annually for Gmarket and SSG.com.

According to industry sources on the 13th, CJ Logistics is estimated to manage about 2.5 million Smile Delivery shipments per month for Gmarket, a Shinsegae affiliate, and approximately 2 million shipments per month for SSG.com's dawn delivery and SSG Delivery services. This amounts to 50 million shipments annually, representing 3.1% of the parcel volume CJ Logistics handled last year.

Earlier, Shinsegae Group and CJ Group signed a memorandum of understanding (MOU) on the 5th for comprehensive cooperation, agreeing to entrust logistics for Shinsegae's e-commerce platforms Gmarket and SSG.com to CJ Logistics first. From Shinsegae's perspective, which has been experiencing poor performance, outsourcing logistics to a specialized company appears to be an efficient decision. It is expected that this move could reduce logistics costs for affiliates by up to 20%.

Starting next month, CJ Logistics will take charge of Gmarket's Smile Delivery shipments, moving shipped products directly to the hub terminal for delivery. CJ Logistics will also handle SSG.com's SSG Delivery and dawn delivery once additional personnel recruitment and other preparations are completed.

Additionally, the process to entrust four Gmarket fulfillment centers (Dongtan, Baegam, Yeoju, and Icheon cold chain) and three SSG.com logistics centers (two in Gimpo and one in Opo) to CJ Logistics within this year is underway. Whether CJ Logistics will directly acquire these logistics centers is still under discussion.

CJ Logistics expects its annual sales to increase by more than 300 billion KRW through collaboration with Shinsegae. In particular, if the volume of SSG Delivery shipments (about 80,000 per day) from the Emart-based PP Center (Picking & Packing) and Gmarket seller shipments increase, the volume CJ Logistics receives from Gmarket and SSG.com could rise to as many as 100 million shipments annually.

Furthermore, by expanding its third-party logistics (3PL) business, CJ Logistics can diversify its business portfolio. 3PL refers to outsourcing logistics functions such as transportation, delivery, storage, and inventory management to specialized companies. It is reported that Shinsegae Group is also discussing entrusting B2B logistics, such as purchasing agricultural products from Emart's production areas, to CJ Logistics in the future.

A CJ Logistics official said, "We hope this collaboration will demonstrate the efficiency of third-party logistics and spread the perception that 'logistics should be handled by logistics specialists.'"

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