1. Distribution and Logistics in Korea Business Logistics Innovation
Content 1
Introduction 2
Current State 3
Distribution and Logistics in Korea 4
Business Logistics Innovation 5
Conclusion

2. Chain
9 in Metropolitan area
8 in local provinces
1 in China

3. Introduction Breaking Price Barriers
Ushering in a Competition
for Lower Prices
Contribution to the country’s price stabilization

4. Sales from 1993 to 1998 15 1,040 No. of Stores Sales 1 15
Unit : mil. dollar

5. Logistics Problems in Korea
A shortage of business logistics specialists
Steep increases in costs
A shortage of distribution centers
Complicated distribution processes
A lack of information system and Standardization

6. Introduction of Logistics System
Low Cost Operation
Fresh and High
Quality Products
Satisfaction
Dry Center
Wet Center
Everyday Low Price
Differentiated Service

7. Business Logistics Flow
Store
Affiliated Companies
Headquarter
Business Logistics Center
Shipping
according to Stores
Classifying goods
Picking
Replenish
-ment
Storage
inspection
DC, PC
Receiving
Measure
-ment
Packaging
Processing

8. Logistics Cost Reduction
Direct Delivery
Delivery through
Dry Center
Percentage of
Logistics cost
Amount of
No. of Automobiles
Unit : $1 million won per year
8.3 %
4.7 %
41.5
23.5
2,600
1,470

9. Logistics Information System
Head Quarter
EDI
EDI
Yong In
Kwang Ju

10. Completion of Logistics Network
Covering
the Whole Nation
The Fourth Logistics Center
The Third Logistics Center
Dec. 2001
The Second Logistics Center
Mar. 2000
The First Logistics Center
Nov. 1996

11. Key to Success Leading Discount Store in Korea State-of-the-art
Logistics System
Differentiated Products
to Customers
Leading
Discount Store
in Korea
Cost Reduction
Quality
Improvement
Improved
Services
to Customers
Satisfaction of
Affiliated Companies
Satisfaction of
Customers

12. One of the Leading Distributors
Vision
One of the Leading Distributors
in the World