Hanjin announced that it has completed the expansion of its Los Angeles fulfillment center and started operation late last month.
With the expansion, the company expects more Korean companies to use the LA fulfillment center as a bridgehead to target the local retail market, as the newly expanded space for fulfillment functions in the warehouse has increased by about 50 percent.
Hanjin plans to provide a one-stop logistics solution for Korean companies to establish a local direct delivery system, which is an essential requirement when entering the North American market.
Hanjin’s Americas subsidiary in Los Angeles doubled the size of its warehouse in 2022 and moved to its current location. Last year, the company expanded its automated systems, including picking robots from Locus Robotics and self-developed packing kiosks.
This is in response to the recent success of Korean brands in the United States, which has significantly increased the demand for domestic fulfillment.
In the first quarter of this year, the U.S. subsidiary’s fulfillment business volume and revenue increased by 262% and 450%, respectively, compared to the same period last year.
“As the volume of domestic fulfillment continues to increase, we are taking a proactive response by increasing local investment,” said a representative from Hanjin. “We look forward to building an efficient operation system centered on fulfillment to expand the volume of existing clients and attract new business partners.”
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
