Pilot services of online order and delivery for small supermarkets will be conducted in Pohang, Bucheon, and Changwon

[Smart City Today]

The small supermarkets in the Netflix drama "Squid Game," can also get orders online and deliver products to customers from now on. Unlike large retailers, online transactions have not been possible at small local supermarkets that do not have their own delivery and logistics systems. Still, SME distribution joint wholesale distribution centers have been established for them, creating a convenient trading environment where they can order online and receive the delivery at home.

The Ministry of Trade, Industry and Energy held the opening ceremony of the Small and Medium Business Distribution Pohang Center with 1st Vice Minister Jang Young-jin, Chairman of the Korea Supermarket Cooperative Federation, and distribution and IT industries attending.

The Small and Medium Business distribution fulfillment construction project aims to connect SME distribution (store), logistics center, and consumers based on digital and online platforms to support SME distribution to conduct online business.

Unlike large retailers that have been actively responding to changes in the online-oriented distribution environment, pilot projects have been underway in three regions, Pohang, Bucheon, and Changwon, since 2021 to strengthen online capabilities of SME distribution, and Pohang Center was established for the first time.

Once an SME distribution fulfillment center is established, SME distributions such as local supermarkets will be able to get orders, sell, and deliver products online, and consumers can check products of local stores in real-time through online platforms.

Based on the fulfillment standard model (system, automation facility, etc.) developed through the pilot project, the government plans to build additional fulfillment centers in 12 regions by 2027 and signed a cooperative MOU to distribute and spread SME distribution fulfillments and create a collaborative ecosystem.

A logistic automation equipment company Kotech Electronics Co., Ltd., a software developer Duson C&I Co., Ltd., big data company Ten Cube Co., a delivery platform company Mesh Korea, Korea Supermarket Cooperative Federation, Korea Electronics and Telecommunications Industry Promotion Association, and Korea Chamber of Commerce and Industry participated in the agreement.

In particular, the organizations participating in the agreement will disclose the results of software programs, equipment and equipment specifications, and data developed through pilot projects for free through shared platforms so that anyone can use them.

First Vice Minister Jang Young-jin said in a congratulatory speech, "The Pohang SME Distribution Fulfillment Center is of great significance as it has set an important foothold for SME distribution companies, which are struggling in the online distribution environment. Starting with the Pohang Center, we will expand the SME distribution fulfillment centers to 15 locations nationwide by 2027, and actively expand support for technology development to upgrade services."