SOUTH KOREA'S FIRST FULLY AUTOMATED MULTI-PRODUCT ORDER FULFILMENT DISTRIBUTION CENTRE FOR LOTTE CHILSUNG

SEOUL, South Korea, Aug. 7, 2025 /PRNewswire/ -- Dematic, a global leader in supply chain automation, has announced the successful deployment of an advanced integrated logistics solution at Lotte Chilsung Beverage's Bupyeong Logistics Centre. The installation marks a milestone for the region as the first fully automated, mixed case order fulfilment system in South Korea and the broader Asian beverage industry.

Photo Credit: Dematic

Lotte Chilsung, one of Korea's largest beverage producers, consolidated four existing distribution facilities into a single logistics hub in Bupyeong. The site covers approximately 8,300 square metres, with a height of 42 metres and a capacity of 9,000 pallets. It services more than 1.2 million cases of beverages annually across convenience stores, e-commerce platforms, general retailers, and food & beverage providers.

Facing challenges including rising labour costs, worker fatigue and growing demand for small-batch, multi-product orders, Lotte Chilsung selected Dematic to design a solution that could address these pressures while also enabling precise, high-speed fulfilment within a limited urban footprint.

Dematic delivered a fully integrated system incorporating a high-density 40-metre Automated Storage and Retrieval System (AS/RS) for space efficient pallet storage, a sophisticated Dematic Multishuttle system for carton buffering and sequencing, robotic layer picking for automated layer handling, and RapidPall palletising cells that build optimised mixed case pallets. Additionally, an automated dispatch buffer equipped with pallet shuttle technology reduces staging space requirements and enables rapid truck loading. All components are centrally managed by the Dematic Warehouse Control System (WCS) that is seamlessly integrated with Lotte Chilsung's enterprise systems.

Since go-live, the solution has significantly reduced manual processes, improved picking accuracy, and enhanced delivery responsiveness while providing real-time inventory visibility and traceability.

"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."

By implementing Dematic's automated system, Lotte Chilsung has significantly improved logistics efficiency within a compact footprint, reducing its reliance on manual labour and lowering operational costs. The new system also provides real-time visibility into inventory and product movement, enabling stronger quality control and faster, more accurate responses to customer demands.

Michael Bradshaw, Vice President of Solution Development for Dematic Asia Pacific, noted that the system reflects the strength of Dematic's long-standing partnership with Lotte Chilsung. "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."

The new facility represents a major step in Lotte Chilsung's digital transformation and sustainability roadmap. With automation playing a growing role in its logistics strategy, the company plans to continue working with Dematic to develop future-ready supply chain solutions across Korea and beyond.

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