CJ Logistics' Destiny with 'O-NE' – The Fulfillment Transformation Strategy
Logistics & Supply Chain Strategy Briefing
STREAMLINE: CJ Logistics' Destiny with 'O-NE' – The Fulfillment Transformation Strategy
(May 18, 2025)
In 2024, CJ Logistics reported an operating profit of 530.7 billion won. The surface numbers look good. But when we dig deeper, the story changes. The "parcel delivery business" – the first thing that comes to mind when we think of CJ Logistics – is the only division showing a decline. Its operating profit actually decreased.
This raises an important question: "What strategic moves is CJ Logistics making now?"
❶ Point of View | Why is the #1 courier company's performance unusual?
CJ Logistics' 2024 consolidated results are as follows:
- Revenue: 12.1168 trillion won (+3% year-on-year)
- Operating profit: 530.7 billion won (+10.5% year-on-year)
Growth indeed. But the picture changes when we look specifically at the parcel and e-commerce division.
- Revenue: 3.7289 trillion won (+0.2%)
- Operating profit: 238.8 billion won (-3% year-on-year)
This performance decline can be attributed partly to the e-commerce market slowdown, but industry analysts suggest CJ Logistics is deliberately reducing its traditional parcel volume. The strategy? 'Fulfillment-centered transformation' with the delivery brand 'O-NE' at its core.
"So what strategy has CJ Logistics unveiled?"
❷ Inside the Move | Rewriting CJ's Logistics Playbook with 'O-NE'
CJ Logistics is moving away from its traditional parcel model: seller location pickup → terminal sorting → next-day delivery. Instead, it's strengthening a structure based on direct inventory fulfillment from its own centers. This transformation is taking shape through the delivery brand 'O-NE'.
- O-NE delivery's core value proposition is 'fast delivery'.It covers midnight cutoff next-day delivery, dawn delivery, same-day delivery, and weekend delivery.
- It's connecting with major platforms like SSG.com, G-Market, NS Home Shopping, and Naver.
- The company has established a dedicated O-NE team separate from the existing parcel division, and formed a specialized fulfillment sales team focused on O-NE.
📌 Editor's note: O-NE is not just a delivery brand. It's closer to a declaration that 'CJ is no longer just a courier company.'
"But what effects is this strategy actually producing?"
❸ Business Playbook | The Fulfillment Innovation Structure Created by 'O-NE'
CJ Logistics is expanding its fulfillment services through the following roadmap:
| Strategic Pillar | Implementation Details |
|---|---|
| Brand Strategy | O-NE frontline positioning, 7-day delivery establishment (launched 'Daily O-NE' in January 2025) |
| Logistics Center Advancement | 12 centers nationwide, total 351,814 m², automated equipment including AGVs & AMRs |
| Industry Specialization | Customized fulfillment for food, beauty, pharmaceuticals, fashion categories |
| IT Systematization | 'eFLEXs' integrated management system (handling everything from orders to delivery) |
| Sales Target Expansion | Extending from large enterprises to SME shippers, lowering minimum volume requirements |
Through this strategy, CJ is competing in the 'speed race' against Coupang and playing a long game to recapture volume through fulfillment-based sales.
"However, when strategy changes, so does the field. So how are delivery agents and drivers experiencing these changes?"
❹ How Has the Market Responded? | Delivery Drivers Describe an 'Unusual Spring'
A CJ Logistics driver in the Seoul-Gyeonggi area says: "These days I'm handling fewer than 200 deliveries. I used to do over 400."
This phenomenon is occurring nationwide, for three main reasons:
- Volume shifting to O-NE with the fulfillment conversion
- CJ's existing parcel contracts transforming into fulfillment contracts
- CJ signaling to shippers that it's no longer 'parcel-centric'
Additionally, the O-NE delivery team operates with separate personnel (through agencies) rather than under delivery agencies. This creates a sense among delivery drivers that 'my work is being taken away.'
📌 Editor's note: Strategies are designed by companies, but the impact is felt by drivers. The current resistance might not be dissatisfaction, but rather a signal of adjustment in progress.
❺ Competitor Matrix | Coupang vs. CJ Logistics vs. Others
| Category | CJ Logistics (O-NE) | Coupang (Rocket Delivery) | Other Couriers (Hanjin, Lotte, etc.) |
|---|---|---|---|
| Delivery System | Dual operation: Fulfillment + Parcel | Unified operation: Direct purchase + Fulfillment | Traditional parcel model-focused |
| Delivery Options | 7-day, dawn, same-day, weekend delivery | 7-day, dawn, same-day, fresh delivery | Next-day focused, limited 6-day operation |
| Tech Infrastructure | 12 centers nationwide, automated logistics infrastructure | Nationwide MFCs, unified fulfillment | Relatively limited infrastructure |
| Logistics Strategy | Parallel with existing parcel, O-NE brand advancement | Efficiency through own logistics centers | Experimental fulfillment attempts |
"So, is this strategy truly effective?"
❻ Beyond the Numbers | Fulfillment Possibilities Through Data
According to CJ Logistics' internal client survey:
- 77% experienced sales volume increases of 25% or more after using fulfillment services
- 78% reported reduced customer complaints
However, the costs remain substantial for now.
- Q1 2025 operating profit was 85.4 billion won, a 21.9% decrease year-on-year
- Attributed to 7-day delivery implementation and increased operational costs
📌 Editor's note: The strategy's performance is currently reflected in the 'income statement' rather than the 'balance sheet.'
"Can this transformation ultimately end in 'success'?"
❼ Summary Insight | CJ Logistics' Next Chapter is 'People'
CJ Logistics is searching for 'what comes after parcel delivery.' And it's betting on 'O-NE' and fulfillment as the answer.
But shifting volume doesn't automatically bring market trust along with it.What's needed now is partnership with the field, specifically an 'operational strategy' that can match the pace of change together.
This is not merely a logistics transformation, but the moment CJ Logistics changes its identity to become an 'e-commerce logistics platform.'
The results of this experiment will be visible in both metrics and people's expressions by late 2025.
© 2025 BEYONDX. All rights reserved. This is part of the STREAMLINE: Beyond Logistics Playbook by BEYONDX series.