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Coupang's Daegu Fulfillment Center: A Look Inside the Future of Logistics

Source: Coupang

Coupang (NYSE: CPNG) has recently unveiled an automated logistics site based on artificial intelligence (AI) and big data at its Daegu Fulfillment Center (Daegu FC).

Completed last March, Daegu FC is considered one of Asia’s most important logistics centers and is the latest example of Coupang’s investment in innovative logistics infrastructure.

Daegu FC has various cutting-edge logistics technologies, including automated guided vehicles (AGVs), sorting robots, and driverless forklifts.

Coupang has defined Daegu FC as a “state-of-the-art logistics center of the future” that provides a safe working environment for employees and improves the quality of Rocket Delivery services for customers.

The AGVs reduce overall work steps by 65% and deliver racks of hundreds of products to employees in an average of two minutes.

They work around the clock, even on holidays when order volumes are high. This makes them a vital automation technology to improve customer experiences, such as missile delivery.

Sorting robots, which eliminate the need for humans to move and lift goods, have reduced employee workload by 65%.

At the same time, the dozens of driverless forklifts on the fifth floor of Daegu FC are a critical technology that enhances employee safety.

The operation of the mega logistics center is expected to accelerate the growth of small and medium-sized enterprises in Daegu. More than 7,000 small and medium-sized enterprises in the Daegu region sell on Coupang, generating hundreds of billions of won in annual sales.

A Coupang representative said, “Daegu FC is the centerpiece of advanced logistics covering Daegu and the southern region and will serve as a test bed and forward base for spreading ‘innovative technology DNA’ to logistics centers across the country.”

Daegu FC plans to increase the use of automated logistics technologies in the future, which will significantly increase delivery volumes.

The company is expected to create more than 2,500 new jobs (10,000 indirect jobs), including logistics tasks such as warehousing and picking and hiring high-value-added automation technology managers.

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