Transport and logistics company, Toll Group, has announced a €6.4 million investment into its Baeksa, South Korea, warehouse facility to support growing customer demand.
The investment includes state-of-the-art advanced automation technology – one of the first of its kind in South Korea – to support the growth in ecommerce, retail and omnichannel fulfilment for retail customers.
The advanced automation technology will include a tote-to-person operation using a carton-transfer unit and a modular conveyor belt system to deliver high inventory picking, which will reportedly increase productivity and operational efficiency by 70 per cent.
The 23,000 square-metre expanded facility has the capacity to store 300,000 inventory items and is tripling Toll’s warehouse footprint in South Korea.
Toll Group Korea Country Manager, Park Seungtaek, said the investment is part of Toll’s broader strategy to grow its Asia business.
“The investment reflects Toll’s commitment to grow this important market and service our customers across retail, chemicals, medical, pharmaceutical and cosmetics industries,” he said.
“We are seeing exponential growth and strong demand from our customers for advanced warehouse management solutions.
“Our automation technology enables us to provide customers with improved productivity, as well as real-time tracking and traceability.
“The picking stations will dispatch items more quickly, enabling our customers to deliver their ecommerce orders faster, more economically and sustainably.”
The Icheon facility is strategically located in the Gyeonggi Province, in close proximity to Seoul and the Metropolitan area.
The Icheon warehouse complements Toll Group’s existing logistics in Seoul and Incheon, and freight forwarding facilities in Pyeongtaek and the Busan Port.
Toll now has 160 facilities in 13 markets across Asia and is making a significant investment in the region, with €414.8 million of investments planned over the next four years.