Naver is collaborating with CJ Logistics to accelerate the expansion of logistics infrastructure that combines artificial intelligence (AI) technology.
Naver is expanding the next-day delivery service for its commerce products such as Smart Store, competing with Coupang’s representative service, ‘Rocket Delivery’. Attention is being paid to what results the combination of Naver’s technology and logistics companies will bring in the competition for delivery speed with Coupang, which has its own logistics center.
■ For fresh food in August, ‘order today, deliver tomorrow’
According to related industries on the 20th, Naver will establish fulfillment centers in Gunpo and Yongin, Gyeonggi-do, following CJ Logistics and Gonjiam, and begin experiments with artificial intelligence (AI) logistics.
‘Fulfillment’ refers to integrated logistics management that handles everything from storage of seller products to packaging, shipping, and delivery according to orders.
The construction of this logistics center follows the partnership between Naver and CJ Logistics through a share exchange in October last year.
Through the opening of this fulfillment center, the service scope and product line of ‘Order Today, Delivery Tomorrow’, which was previously operated at the Gonjiam Center, has been further expanded.
The Gunpo Logistics Center began operations with an area of 11,000 pyeong early this month. In August, we plan to open a cold chain fulfillment center specialized in low-temperature storage products for fresh food such as refrigerated and frozen products in Yongin, Gyeonggi-do. This center has a total floor area of 19,174 m2 (about 5,800 pyeong). Accordingly, next-day delivery of fresh food is expected to become possible starting in August.
A Naver official said, “Focusing on the newly opened fulfillment center, we will use AI-based ‘Clova Forecast’ to increase demand forecasting while also working on smart logistics such as logistics, robots, and eco-friendly packaging.”
‘Clova Forecast’ is a system that predicts Naver shopping orders one day in advance and helps in manpower deployment and operational efficiency at distribution centers.
Through this, Naver plans to increase demand forecasting and expand smart logistics, including logistics, robots, and eco-friendly packaging. We also plan to introduce unmanned mobile robots on a pilot basis to help process logistics tasks.
Expected to expand synergy with large brands
Naver expected to expand business synergy with brand companies through AI logistics experiments.
The advantage of brands is that they have large volumes and vast amounts of big data, making it possible to experiment with various logistics processes.
Currently, about 320 brands are utilizing Naver technology and platforms from sales to marketing, including selling products through Naver Brand Store, planned live events using live commerce tools, and Brand Day, which provides maximum benefits 24 hours a day. Naver and Korea Express plan to expand the application of this technology to Naver Smart Store small and medium-sized enterprises (SMEs) in the future after conducting logistics experiments with various brands with large volumes.
Kim Pyeong-song, head of Naver’s business development department, said, “By combining Naver’s advanced AI technology and CJ Logistics’ sophisticated logistics system to build a more advanced AI logistics infrastructure, sellers will be able to reduce logistics-related burdens and focus on their business.” He said.
Source: Pangyo Techno Valley Official Newsroom
→ Go to ‘Asia Innovation Hub Pangyo Techno Valley 2021’ news