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| Coupang's fulfillment center in Daegu / Courtesy of Coupang |
By Kim Jae-heun
Coupang unveiled its brand new, cutting-edge fulfillment center in Daegu to the public last Friday, showcasing what the future of logistics looks like. The e-commerce firm's latest logistics facility is the largest of its kind in Asia, featuring cutting-edge automation technology based on artificial intelligence (AI).
"Our Daegu fulfillment center, which introduces various state-of-the-art technologies, is evaluated as a future logistics center that dramatically lowers the work intensity of employees and provides a safe working environment, while enhancing the quality of our Rocket Delivery service for customers," a Coupang PR official said. Rocket Delivery is Coupang's flagship service that delivers online orders within 24 hours.
One of the notable technologies seen in the fulfillment center is its smart logistics system that uses AI automation to manage all processes from collecting ordered items to packaging and classifying them before delivery to customers.
Coupang invested more than 320 billion won ($255.8 million) in the new fulfilment center that is the size of 45 soccer stadiums combined. It adopts various logistics technologies, including automated guided vehicles (AGVs), sorting bots and driverless forklifts.
The building consist of 10 floors aboveground, the seventh and ninth of which have some 1,000 AGVs stocking and collecting items ordered online. They have replaced human workers who previously had to run around the venue to find items stocked on the shelves.
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| AVGs handle millions of products and navigate based on QR codes installed in the floor at Coupang's fulfillment center in Daegu. Courtesy of Coupang |
Now, AGVs handle millions of products and move according to QR codes installed on the floor and classify them according to their destination. This increases work efficiency by 65 percent and enables the sorting of hundreds of items in two minutes, which allows faster processing required for overnight delivery services. Robots operate all day long without rest throughout the whole year.
Sorting bots scan QR codes attached to product packages and classify them by customers' address, which only takes a few seconds. There are human workers to monitor the whole process through computer screens.
Coupang said the automation at its Daegu fulfillment center has increased jobs, contrary to previous worries.
The company will recruit about 2,500 employees directly and 10,000 indirectly in total. They will mostly be working as managers or engineers taking care of robots and facility systems.
In addition, Coupang is collaborating with local merchants in Daegu to sell their products online, which is adding hundred billions of dollars in profits for them every year.
"We have created a workplace that is more convenient and comfortable for our employees through digital transition. It is a symbolic logistic center of Coupang," Coupang Fulfillment Service Representative Director Jeong Jong-chul said. "We will continue to create jobs and seek mutual growth with the local community based on our Daegu fulfillment center and its state-of-the-art technology."
