Lotte Chilsung debuts automated beverage hub with Dematic tech
Dematic has completed the deployment of a fully automated, integrated logistics system for Lotte Chilsung Beverage's Bupyeong Logistics Centre, introducing South Korea's first multi-product, automated order fulfilment distribution facility within the beverage sector.
Lotte Chilsung consolidated four of its previous distribution centres into a single logistics hub in Bupyeong, forming a centralised warehouse spanning approximately 8,300 square metres, reaching a height of 42 metres and supporting a storage capacity of 9,000 pallets. The centre processes over 1.2 million cases of beverages per year, distributing to a network of convenience stores, eCommerce sites, general retailers, and food and beverage service providers.
Operational challenges
The consolidation aimed to address a series of challenges, including increased labour expenses, employee fatigue and a significant rise in demand for small-scale, multi-product orders. These pressures are particularly pronounced in dense urban settings, where logistics operators must optimise both space and fulfilment speed.
To meet these needs, Lotte Chilsung worked with Dematic on a purpose-built solution. The result is a highly automated operation featuring a 40-metre high-density Automated Storage and Retrieval System (AS/RS) for efficient pallet storage, Dematic's Multishuttle technology for carton buffering and sequencing, robotic layer picking for automating the handling of pallet layers, and RapidPall palletising cells that build optimal mixed case pallets. The site also includes an automated dispatch buffer leveraging pallet shuttle technology to minimise space for staging and increase loading speed.
Management of all fulfilment workflows is centralised through the Dematic Warehouse Control System (WCS), integrated directly with Lotte Chilsung's broader enterprise infrastructure. This allows for detailed oversight and responsive coordination across every stage of inventory movement.
Measurable outcomes
Since becoming operational, the new distribution centre has delivered reductions in manual activities, lifted order picking accuracy and improved delivery timelines. Real-time visibility of inventory has been enhanced, ensuring seamless traceability of products throughout the fulfilment process.
"In a market where small, mixed orders are the new norm, Dematic's automated system has transformed our logistics operations," said Shim Kyung-seop, Director of Lotte Chilsung's Bupyeong Logistics Centre. "It has dramatically improved order accuracy, reduced delivery times and enhanced overall customer satisfaction, while also relieving the strain on our workforce."
Through this automation project, Lotte Chilsung has achieved greater logistics efficiency within a confined footprint, decreased reliance on manual processes, and reduced ongoing operating costs. The system's monitoring capabilities also deliver instant status updates on inventory levels and product flows, enabling the company to maintain tighter quality control while meeting shifting market demands.
Partnership approach
Dematic's project team designed and configured the Bupyeong facility's automation infrastructure specifically for Lotte Chilsung's requirements, taking into account its operational priorities and local constraints.
"This is more than a technology deployment, it's a landmark project that sets a new standard for beverage logistics in Asia. Our team designed a solution tailored to addressing Lotte Chilsung's operational challenges, delivering measurable and sustainable business outcomes," said Michael Bradshaw, Vice President of Solution Development for Dematic Asia Pacific.
The Bupyeong Logistics Centre is a key element in Lotte Chilsung's ongoing business transformation and sustainability ambitions. Automation is expected to play an expanding role in the company's future logistics and supply chain plans, with continued collaboration between Lotte Chilsung and Dematic anticipated for further developments within Korea and other regional markets.