CJ Logistics announced on Feb. 22 that it has established an integrated logistics center for the globally renowned shoe brand Crocs in Icheon, Gyeonggi Province.
Spanning an area of 20,000 square meters, the new facility can handle up to 50,000 boxes per day, doubling the capacity compared to the previous one. With improved logistics, deliveries have become even faster. Icheon is considered a “logistics hub” due to its convenient transportation accessibility, being close to Seoul where Crocs stores and online purchase demand are concentrated.
Crocs is investing in South Korea, a market that has shown high growth rates annually, by establishing and strengthening its logistics infrastructure. Just two years after opening its first logistics center in South Korea in 2022, Crocs has embarked on expansion efforts.
The newly opened logistics center serves as an “integrated logistics facility” catering to over 90 offline stores nationwide as well as online shopping. Logistics operations for offline stores (B2B) differ from those for online malls (B2C). Products for store delivery are shipped in bulk during the early hours when stores are not open for business. Crocs has outlets not only in standalone stores but also in department stores and large supermarkets.
On the other hand, products for online sales are processed in small quantities but with multiple orders at once. Although operated differently within the same logistics center, CJ Logistics has optimized the workflow from the design stage to accommodate both operations effectively.
The company has also focused on quality management in shipping. Given that Crocs experiences significant fluctuations in volume of orders due to promotions and seasonality, fast delivery and efficient inventory management are crucial.
The key technology implemented is automated classification. Unlike general apparel, shoes come in various colors and sizes, posing significant challenges in classification and inventory management. The number of products currently sold by Crocs alone exceeds 8,000, including shoes and accessories like Jibbitz Charms.
To address these challenges, CJ Logistics has introduced its internally developed automated sorting system called “Mini AGV Assorting System (MAAS).” This system utilizes about 50 mini Automatic Guided Vehicles (AGVs), resembling robotic vacuum cleaners, to classify products by delivery destination and transfer them to the appropriate shipping boxes. By replacing tasks previously done by humans with MAAS, productivity has increased by over two times.
CJ Logistics is responsible for handling Crocs’ logistics operations in four Asian countries, including South Korea, India, China, and Singapore. Starting with Singapore in 2019, followed by China and South Korea in 2022, and India last year, Crocs has sequentially opened dedicated logistics centers in all of those countries. When combined, the total floor area of these facilities amounts to 57,000 square meters, equivalent to the size of eight soccer fields. It marks the first time a domestic company has simultaneously secured logistics operations in four Asian countries.