Leader of third-party logistics (3PL)
“We have managed to operate our company in challenging business environments for 20 years. This is the reason that we have received a lot of ‘first-time’ titles from the government and logistic industry sector,” said Lee Sang-keun, President and CEO of Samyoung Logistics, a third-party logistics company. The firm is considered a leader of logistics industry as it received the “superior logistic firm certificate” during the Logistics Day ceremony hosted by the Ministry of Land, Infrastructure and Transport in November last year.
In an interview with The Korea Post, CEO Lee explained third-party logistics (3PL) refers to integrated logistics services that cover more than two logistic functions among shipping, warehousing and distribution activities. “Third-party logistics is ideal for medium and small-size firms which are difficult to perform the logistic service on their own or through their subsidiaries, since high efficiency is required to lower logistics costs and upgrade the quality of the service,” said CEO Lee.
Samyoung Logistics has steadily taken the lead in the advancement of 3PL by operating logistics centers that suit the characteristics of every product and warehouse management system. Indeed, Samyoung Logistics has been ahead of others in job creation certification, productivity enhancement company designation, ISO 14001, ISO 9001, logistics standard facility certification, and IMS information management system certification, in addition to the logistic service certification.
As logistics is a service that is difficult to verify with visible products, it is not easy for new logistics firms to become known to customers. As a result, CEO Lee has initially focused on earning high-profile certificates. As the firm set higher standards and sought to meet them, it often received the first certification before other companies. "Since our manuals and reports were first certified, many firms that apply for certification often are inclined to benchmark our data," he said.
Samyoung Logistics primarily deals with logistics for electronic components & parts from Japanese global electronics firms, products from Korea’s top convenience stores and food items from leading restaurant chains.
Moreover, Samyoung Logistics has endeavored to enhance its logistics consulting capabilities, offering more than 110 consulting services so far. Of late, it currently carries out a joint logistics consulting support project for small and medium-sized enterprises (SMEs) in the field of cosmetics, food items and online commerce in partnership with Korea Chamber of Commerce and Industry. The southeastern industrial complex logistics collectivization project, which was ordered by the Incheon Metropolitan City government and started by Samyoung Logistics in November 2004, is considered a successful model for joint logistics services, participated by logistics firms.
As SMEs are smaller in volume than large enterprises, they have to pay more logistics expenses, while being unable to satisfy individual needs. Building a joint logistics platform for SMEs would be a big advantage in upgrading their competitive advantages, Lee said. The company was founded in 1998. CEO Lee recalled that “when our parent firm, which was a logistics company, was bankrupt amid the 1997-98 foreign exchange crisis, we decided to set up Samyoung Logistics in February 1998. This is how our firm was born more than 20 years ago.”
Samyoung Logistics currently operates 24 logistics centers nationwide, which boast of advanced logistics systems, warehousing systems and organizational management systems. By lowering the turnover rate of field workers, it is able to accumulate industrial know-how and lead to further development through continuous education and training. "In order to get ahead of others, I felt we need to do it differently. And I made it our company's motto. I think maintaining high level of professionalism and differentiation management policy is the driving force behind our success,” said CEO Lee.