CJ Logistics builds logistics center for Crocs

South Korea’s CJ Logistics announced on Thursday that it has established a global logistics center for the renowned shoe brand Crocs in Icheon, Gyeonggi Province.

With a floor area of 20,000 square meters, the new facility can handle up to 50,000 boxes daily, doubling the capacity compared to the previous setup.

This development contributes to faster deliveries, especially as Icheon is close to Seoul, where Crocs stores and online purchase demands are concentrated.

Crocs is investing heavily in logistics hubs to strengthen its presence in South Korea. After opening its first logistics center in the country in 2022, the company expanded within two years.

The newly opened logistics center serves as an integrated logistics center, covering over 90 offline stores nationwide and online shopping.

For offline sales items, bulk shipments are made during the early morning hours when stores are not operational. Online sales items are processed in small quantities for multiple orders.

While operating in different ways within the same logistics center, CJ Logistics has optimized the workflow from the design stage. The company introduced its proprietary automated sorting system called the mini AGV assorting system (MAAS).

About 50 mini automatic guided vehicles (AGVs), resembling robotic vacuum cleaners, handle the task of categorizing products based on delivery destinations and transferring them to the corresponding shipping boxes.

CJ Logistics manages Crocs' logistics in four Asian countries, including South Korea, India, China and Singapore. Starting in 2019 with Singapore, the company opened Crocs-dedicated logistics centers in China and South Korea in 2022 and India last year.

Write to Ji-Yoon Yang at yang@hankyung.com