CJ Daehan Tongun Develops Smart Warehouse Management System... "Leading Logistics IT"

by Ryu Hyunseok

Published 17 Apr.2023 08:55(KST)

CJ Logistics announced on the 17th that it is implementing the smart warehouse management system LoIS WMS (Warehouse Management System) across its nationwide logistics centers.

WMS is a solution for logistics operations that tracks and manages product inbound/outbound, movement, inventory, and more. It supports efficient logistics center operations through automated processes. CJ Logistics plans to sequentially transition its existing WMS to LoIS WMS. For newly contracted customers, the new system will be applied immediately.

CJ Logistics’ LoIS WMS was developed to enhance logistics service quality amid distribution trends where customers increasingly demand B2B2C across various industries. B2B2C is a term combining B2B, which refers to business-to-business transactions, and B2C, which refers to business-to-consumer markets.

Efficient logistics management is essential to respond in real-time without distinction between the B2C sector, represented by online shopping malls, and the B2B sector supplying dealerships or sellers. Previously, even when establishing new distribution channels, products in the B2B channel had to go through the entire process from inbound to outbound again to move to B2C. The logistics systems were not integrated, resulting in significant time and cost consumption. CJ Logistics’ LoIS WMS was created to reduce the time and cost required to understand logistics status such as expiration dates and channel-specific inventory and to establish strategies, thereby improving efficiency.

CJ Daehan Tongun Develops Smart Warehouse Management System... "Leading Logistics IT"

Through LoIS WMS, CJ Logistics can now provide customized services to a wider range of customers. Industry-specific templates are created within LoIS WMS to offer specialized services that implement features tailored to customers’ industries such as CPG, F&B, and pharmaceuticals.

The development of LoIS WMS marks the beginning of CJ Logistics’ evolution as a logistics IT company that maximizes efficiency and refines logistics operations. In particular, the CJ Logistics W&D (Warehouse & Distribution) headquarters directly designed and participated in the development to gather and reflect feedback from actual system users such as sales, operations departments, and customer logistics managers. Field operators, IT personnel, and developers were involved in design and development for two years to complete the system.

LoIS WMS significantly improved logistics service quality by integrating various indicators such as unified inventory management and route optimization for each path. As a result, the speed increased by 30% compared to the existing system, and accessibility was enhanced by allowing anytime access via mobile apps or web, improving work convenience. The reduction in work waiting time also simultaneously increased worker satisfaction and productivity. CJ Logistics plans to expand the application of LoIS WMS to its global local subsidiaries in the U.S., Southeast Asia, and other regions.

Kim Kwon-woong, head of CJ Logistics W&D headquarters, said, “LoIS WMS is a system designed directly by the business division after diagnosing the system structure and collecting feedback from actual logistics center system users,” adding, “We plan to continuously upgrade the system under the belief that IT competitiveness is logistics competitiveness.”