CJ Olive Young announced on the 16th that it will establish the 'Olive Young Gyeongsan Logistics Center (hereafter referred to as Gyeongsan Center)' in Jinlyang-eup, Gyeongsan City, Gyeongsangbuk-do, and will commence full-scale operations starting this month. This comes just five months after the establishment of the Anseong Center, which handles logistics for the Global Mall and other services.
The Gyeongsan Center has a total floor area of 38,000 square meters (approximately 12,000 pyeong), equivalent to the size of six soccer fields. The daily shipping capacity of the Gyeongsan Center nears 1 million units. This means that, based on simple calculations, more than 10 products are dispatched every second. Olive Young has not only increased its logistics capacity by over 50% compared to before but can now ship a maximum of 3 million products to stores nationwide in a day.
Since the Gyeongsan Center is responsible for logistics to stores outside the capital region, Olive Young can now decentralize the logistics volume of over 1,300 stores nationwide. While the Yangji Center focuses on the logistics and online deliveries for stores in the capital region, which account for 60% of the total logistics volume, more than 600 stores in the Yeongnam, Jeju, Chungcheong, and Honam regions will receive supplies from the geographically proximate Gyeongsan Center.
According to representatives from Olive Young, this logistics processing capacity has been made possible through logistics automation. By introducing optimized state-of-the-art facilities and systems, 90% of the entire logistics process has been automated. Instead of forklifts, products are stacked while moving up, down, left, and right between high-density racks, and several automated systems, including ▲Airrob for picking products, ▲autonomous mobile robots (AMR) for loading and delivering inbound and outbound goods to workers, and ▲depalletizers for transporting high-weight products per box unit have significantly reduced manual labor while enhancing logistics productivity.
In particular, it automatically categorizes individual items through systems such as the Piece Assorting System (PAS) and Digital Assorting System (DAS). Prior to dispatch, a picking robot equipped with a multi-joint arm captures small packaged goods and feeds them onto a conveyor belt.
Olive Young believes that logistics infrastructure is key to the growth of the K-beauty industry. They have expanded their urban logistics centers (MFC), which have been built primarily in the metropolitan area of Seoul and Gyeonggi Province, to major regional cities and small towns across the country to enhance their quick commerce competitiveness. Olive Young plans to maximize synergy between logistics centers, MFCs, and stores nationwide to provide faster and more convenient access to its omnichannel services.
A representative from Olive Young stated, "With the operation of the Gyeongsan Center, the logistics network of Olive Young has completed its blueprint, connecting the Gyeongsan, Anseong, and Yangji Centers, which serve as the 'heart,' and the MFC, which serves as the 'capillary,' along with domestic and international logistics infrastructure linking to the stores. We will continue to invest to enhance customer satisfaction and foster co-growth with our partners."