Yongma Logis Co., Ltd. – 3PL established a distribution hub with high-speed sorter to improve throughput & accuracy
Yongma Logis Co., Ltd. (headquartered in Seoul, Korea) was established in 1983 as the distribution subsidiary of the Dong-A Pharmaceutical Group. It has established itself as one of the premier 3PL (third party logistics) companies in Korea. While excelling in medical distribution, Yongma Logis handles a higher volume of cosmetics and housewares through its global subsidiaries. In the past three years, sales have increased 20% each year.
Automated sorting provides distribution success
Anseong, once known for producing brassware, is a city located one-hour south of Seoul by car. Today, it is a transportation hub with easy access to Gyeongbu, Jungbu, and Seohaean Expressways. In July 2007, Yongma Logis built a new distribution facility there. Ansung Distribution Center (ADC) is the company’s distribution hub operating with both TC (transfer center) and DC (distribution center) functions.
The new facility features a Daifuku Jet Surfing Sorter (JSUS) that processes 7,500 cases/hour and dramatically improved the company’s order processing throughput and distribution quality.
The ADC building stands two stories high, approximately 152 m (498 ft) long and 51 m (167 ft) wide. It is Yongma Logis’ largest and is equipped with state-of-the art technology. The first floor is the TC area using JSUS and the second floor is the DC area handling products for prominent Korean and foreign companies. DC products picked on the second floor. Products from all over Korea are inducted onto eight JSUS receiving lines and then sorted and shipped quickly and accurately to their destination. Products are delivered to customer stores or individual homes via Yongma Logis’ 40 plus distribution centers throughout Korea.
Previously, a relay operation like the company’s Shingal Distribution Center would sort products semi-manually; operators read shipping labels and pushed the cases out while products were transported on conveyors. This method had a limit to its human sorting speed and errors were not infrequent. Changing to an automated system was the best way to increase volume.
The introduction of JSUS improved throughput greatly. Currently, Yongma Logis is aiming to increase the monthly handling volume from one million cases to 1.8 million in 2010. Sorting errors have been practically eliminated and the company has gained credibility with its customers.
“Competition within the industry is very strong. However, I believe we can win by reinforcing services focused on customers. The new distribution center was built as a basis for that as well as reducing cost and improving distribution quality,” shares director of headquarters operation Yong-Kyu Kim.