aT inspects Icheon hub logistics center using cross docking system

The Korea Agro-Fisheries & Food Trade Corporation recently inspected the Icheon hub logistics center, which utilizes a cross docking system to aim for product delivery within 30 hours of receipt.

The logistics operations of the "online wholesale market," designed to increase farm income and reduce distribution costs by cutting complex agricultural distribution steps, have been revealed. The Korea Agro-Fisheries & Food Trade Corporation (aT) recently visited the Icheon center, where the online wholesale market's hub logistics center is located, to inspect the entire process from local collection to delivery.

From 'Milk Run' local collection to unmanned forklifts

The online wholesale market is a B2B (business-to-business) platform where sellers and buyers trade agricultural and fishery products, rather than general consumers. Sellers are mainly Agricultural Product Processing Centers (APC) or wholesale corporations, while buyers include online sellers, intermediate wholesalers, and food ingredient companies. The platform can operate 24 hours a day, 365 days a year, minimizing time constraints, and it reduces the burden on farms by allowing small quantities that are difficult to fill a single truck to be bundled with products from other local areas for delivery.

Logistics begin with a collection method called "Milk Run." A Milk Run refers to a method where trucks circulate through multiple local areas to collect goods. Agricultural products gathered at the Icheon hub logistics center undergo strict quality inspections. To maintain freshness, the interior of the center maintains a "Cold Chain" system with temperatures kept between 0 and 10°C.

The center operates unmanned forklifts designed with safety as the top priority. According to the on-site explanation in the video, the unmanned forklifts are designed to stop automatically if a person approaches, and they are characterized by having a much lower accident rate than manned forklifts. Once received, the volume of goods undergoes sorting based on the delivery destination after inspection.

The core of the 'no inventory accumulation' Cross Docking system

The core operational strategy of the Icheon center is "Cross Docking." Cross Docking is a method where, upon arrival at the center, goods are not stored in a warehouse for a long period but are immediately loaded onto delivery vehicles for dispatch immediately after sorting. To maximize the freshness of agricultural products, the goal is to complete delivery within 30 hours at the latest after receipt.

To increase logistics efficiency, the interior of the center is divided into "chambers" by function. It operates organically, divided into a chamber for receiving and inspection, a chamber for sorting goods for delivery, and a chamber for storing goods if necessary. Goods are loaded according to numbers marked on the floor, and loading occurs immediately when a vehicle matching that number arrives. Through this, even if a buyer orders multiple items, they can receive the integrated sorted volume all at once from the center, providing high logistics convenience.

Continuous recruitment of sellers... How to apply for logistics services?

A step-by-step procedure is required to use the online wholesale market hub logistics center. First, one must apply to use the logistics center through the online wholesale market website and then conclude an agreement with the hub logistics center operator. After undergoing user system registration and approval, the relevant hub logistics center will appear in the platform's transportation method, and the center can be selected when entering transportation information in the online wholesale market.

An official from aT stated, "We are continuing to recruit sellers not only this year but also next year," adding, "We will support them so that they can responsibly and freshly deliver products from local collection to delivery through the hub logistics center."

Source: original video (YouTube)