CJ Logistics, a global leader in supply chain innovation, has taken a major step forward by introducing South Korea’s first private 5G network in the logistics sector. The deployment, completed in partnership with CJ Olive Networks, covers the entire Icheon 2 Fulfilment Centre and marks a significant milestone in the transformation of logistics through advanced connectivity.
Founded with a vision to build a comprehensive logistics network that spans the globe, CJ Logistics has grown steadily over the years. Its international expansion has included key acquisitions in China, Vietnam and the United States, helping it establish a robust global presence. In South Korea alone, the company operates over 400 warehouse facilities, with 40 more centres located overseas.
CJ Olive Networks, a digital solutions provider within the CJ Group, has been licensed by the Ministry of Science and ICT to operate private 5G networks. With a growing focus on sectors such as smart logistics, media and entertainment, the company is now driving the development of private 5G infrastructure across strategic industries.
The decision to deploy a private 5G network at the Icheon 2 Fulfilment Centre was motivated by persistent issues with Wi-Fi. Despite deploying 300 access points in previous facilities, CJ Logistics continued to experience coverage blackouts and unreliable performance. These challenges hindered productivity and highlighted the limitations of traditional wireless networks in large and dynamic environments.
Private 5G brings a step change in connectivity by offering ultra-fast speeds, low latency and high reliability. Using spectrum in the 4.72 to 4.82 GHz range, the new network at Icheon 2 eliminates channel interference and extends radio coverage over a wider area than Wi-Fi. This reduces the need for dense infrastructure and simplifies ongoing management.
One of the most immediate benefits is seen in the tools used by logistics workers. Devices such as PDAs and tablets are now connected via the private 5G network, allowing for quicker scanning, order picking and stock management. This alone has contributed to a twenty percent increase in productivity, largely due to a reduction in delays during the picking process.
The technology also supports real time communication between devices and systems. This enables automation tools like autonomous mobile robots and automated guided vehicles to operate at higher speeds and with greater coordination. By shifting to a single, seamless network, CJ Logistics has improved not only workflow efficiency but also workplace safety.
The private 5G solution, delivered by Ericsson, required far fewer radio units than the legacy Wi-Fi system and cost fifteen percent less than a comparable wired solution. This cost efficiency, combined with the ability to scale easily across multiple sites, makes private 5G a compelling investment for a logistics provider managing hundreds of facilities.
Beyond handheld devices, the network’s capabilities will soon extend to cover robotics, CCTV and other smart infrastructure within the facility. This is part of a broader vision for Logistics 4.0, where AI, the Internet of Things and big data are fully integrated to deliver faster, smarter and more adaptive supply chains.
The Icheon 2 Fulfilment Centre, spanning 12,000 square metres across three floors, is now the flagship of this next generation approach. It sets a precedent not only for CJ Logistics but for the wider logistics industry in South Korea and beyond.
By combining CJ Logistics’ operational expertise with CJ Olive Networks’ digital capabilities, the two companies have demonstrated how private 5G can unlock new levels of performance in complex environments. This collaboration represents a forward-looking model for innovation in logistics, one that other global players will likely watch closely as they plan their own digital transformation strategies.
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