SSG.com Delivery Center
After Coupang’s Innovation
Until the advent of Coupang, delivery was dependent on the parcel market.
But Coupang came out with a new method.
Coupang invested enormous amounts of money and built its own distribution centers nationwide.
The introduction of’Rocket Delivery’, which guarantees next-day delivery by dramatically reducing the travel distance of goods.
One after another, retailers are jumping into a speed war in Coupang.
Naver-CJ Logistics strategic alliance,
Naver decided to build a strategic partnership with CJ Logistics.
The two companies are working on a plan to provide the same service.
The service is delivered that afternoon if you order by 10am, and that evening if you order by 2pm.
Both sides are considering a system that predicts demand and inventory based on artificial intelligence (AI), utilizing motorcycle delivery networks.
Naver CEO Han Sung-sook said in a conference call for earnings announcement last month, “We are testing fast delivery around the’specialized warehouse’ category in Naver. We expect the related speed to be faster.”
Lotte On, double the speed
What Lotte brought out is relay delivery.
Lotte Mart’s Jamsil branch recently started a pilot service.
In principle, the order is delivered within 2 hours.
Previously, vehicle delivery drivers were responsible for everything from driving to the front door.
Relay Veson has a separate flexor that covers the section up to the last entrance.
The flexor waits in its own space, picks up the truck, and delivers it to the final destination by motorcycle or on foot.
It is said to be twice as fast as the conventional method.
SSG.com uses E-Mart store network
SSG.com plans to actively utilize the network of E-Mart stores across the country.
110 of E-Mart’s 141 stores have’PP Centers’.
PP center refers to’Picking & Packing’ center.
An employee called a picker puts the items ordered by customers into the shopping cart and even packs them straight away.
The packaged items are then delivered directly to the ordering customer.
SSG.com is currently promoting a plan to increase the volume of PP centers, which is about 40% of the total.
Consumers are good to be fast, but shipping workers?
Coupang’s war of speed is terrifying.
Five workers have died in the Coupang Distribution Center in the last eight months.
28-year-old Jang Deok-jun, who died suddenly in October last year while working at the Daegu Chilgok Logistics Center, said he lost 15 kilograms in one year and six months.
Last year alone, 16 courier workers died from overwork.
Lately, the government came forward and created a social consensus, such as the introduction of classifiers, but it was an agreement with no coercion.
There are reports that the courier is passing this cost to the agency and is not properly putting in the sorting staff.
There are plenty of articles introducing retailers’ innovations.
However, it is difficult to find stories of people working in them.
Some say that the speed war in the retail industry has made it convenient.
But there are some who are pushed to the forefront of the battlefield.
Those who lost their jobs due to COVID-19, those who lost their part-time jobs, and those who closed their stores. The only thing they can easily find now is delivery labor. So the unit price of delivery labor goes down.
The storm growth and innovation of online platform companies now may stand on someone’s death.