CJ Logistics, a stalwart in the logistics industry since its establishment in 1930, has announced record-high performance in its contract logistics (CL) business. This year, new orders in the CL sector are expected to reach 730 billion won, marking a significant 40% increase from the previous year’s 530 billion won. The company attributes this surge to its advanced logistics consulting services, which have attracted a slew of large client orders.
On Nov. 26, CJ Logistics revealed that as of the third quarter of this year, cumulative sales in the CL sector increased by 4% year-on-year to 2.2023 trillion won, while operating profit rose by 16.8% to 135.1 billion won. The company also reported substantial growth in its Warehouse & Distribution (W&D) and Port & Delivery (P&D) business units. The W&D sector’s order amount surged by 98% to 320 billion won compared to the previous year, and the P&D business increased by 14% to 410 billion won.
A representative case of CJ Logistics’ successful orders is a logistics contract with Jeju Province Development Company, the producer of Jeju SamDaSoo brand mineral water, signed last May. This contract proposed 100% indoor storage and a 65% improvement in storage efficiency through the company’s logistics simulation. Such innovative solutions have positioned CJ Logistics as a leader in the industry, boasting the largest logistics consulting organization in the country. The integration of advanced technologies from the TES Logistics Technology Research Center has enabled the company to provide differentiated solutions, enhancing both storage and work efficiency for its clients.
Do Hyung-jun, head of sales at CJ Logistics, highlighted the growing trend of customer orders transitioning from first party logistics (1PL) to third party logistics (3PL). “The number of customer orders transitioning from 1PL to 3PL is increasing based on customized consulting for each industry sector,” he stated. “We aim to secure a unique growth momentum through smart logistics solutions.”
Looking ahead, CJ Logistics expects its growth momentum to accelerate next year with the full-scale realization of new order sales, including expanded collaboration with the Shinsegae Group. The area of new centers to be opened by next year will be 577,000㎡, equivalent to 81 soccer fields, further bolstering the company’s capacity to meet increasing demand.
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