Description/achievement of initiative
CJ Logistics represents one of the finest global logistics companies, operating in 137 cities around 32 countries. By the year of 2020, CJ Logistics has an ultimate goal to reach the top 5 global logistics company. CJ Logistics has developed the Senior Parcel Delivery which creates new job opportunities for senior citizens. Recently, Fortune has nominated CJ Logistics’ Senior Parcel Delivery as one of the 50 business models that changed the world, making it the first time that a Korean company is nominated. This is an innovative SDGs model that resolves the issue of job creation and poverty.
Implementation methodologies
CJ Logistics’ parcel delivery service has a process of delivering up to 5.28 million boxes a day based on its unique infrastructure and dense delivery network.
Moreover, CJ Logistics ships 1.05 billion boxes a year with the operation of 12 Hub terminals, 270 sub-terminals and 18,000 vehicles which marks is the largest scale in Asia. With 17,000 delivery men working in this environment, the state-of-the-art Technology-based automation and big data system minimize the excessive labor loss in terminal classification, one-day delivery, etc.
Senior Parcel Delivery makes full use of this system and environment of CJ Logistics. In particular, senior employees are physically less burdened and able to have shorter working hours as Senior Parcel Delivery has a different focus from the conventional delivery.
While typical delivery men driving a vehicle visit around 200 customers a day, senior employees distribute the work amongst 4-5 other senior employees and deliver within 1-2km of the regional delivery base.
Also, the eco-friendly equipment maximizes the delivery efficiency for seniors. Such electric carts and wagons are 100% powered by electricity and therefore does not emit greenhouse gases. This reflects CJ Logistics’ business philosophy of sharing both values of employment and environment preservation. Its eco-friendly management ultimately aims for mitigating greenhouse gases and recycling resources. It carries out energy project in urban forest for protecting the local environment and promoting biodiversity.
Arrangements for Capacity-Building and Technology Transfer
CJ Logistics corresponds to the SDG Goal 1 [End poverty in all its forms everywhere] through the Senior Parcel Delivery program. This allows CJ Logistics to achieve a specific target (1.3) – “Implement nationally appropriate social protection systems and measures for all, including floors, and 2030 achieve substantial coverage of the poor and the vulnerable” based on the United Nations criteria. In addition, CJ Logistics can contribute to achieving the SDG Goal 8 [Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all] and its target (8.5) – “By 2030, achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value.” Lastly, it also corresponds to the SDG Goal 17 [Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships], because it is a partnership model between public, public-private, and civil society.
Korea is the fastest aging country with 14% of the population exceeding the age of 65 this year. OECD’s ‘Preventing Aging Inequality’ report states that the poverty rate of Koreans between 66-75 is 42.7%. If a viable countermeasure and job creation model called “Senior Parcel Delivery” successfully settles in Korea to resolve senior poverty, this would very well serve as an essential and sustainable model for countries with SDGs objectives around the globe.
Coordination mechanisms/governance structure
Surpassing 7 billion people in 2011, the global population is increasing at a very rapid rate and has now reached 7.4 billion. Young population under the age of 20 is escalating in Africa and Southeast Asia while senior population is growing in the U.S., Europe, and Northeast Asia. This population crisis is posing major threats to humanity by causing food and water shortage, lack of residential area, etc.
However, the most serious concern is that it is now difficult to find good quality jobs for all generations since jobs in high-valued business that requires basic labor is disappearing. In particular, ICT technology is rapidly replacing manpower not only in manufacturing which is the basis for jobs, but in almost every field such as service industry, sales and financial business due to the Fourth Industrial Revolution. As a result, unemployed people are driven into few large cities as economic poverty expands.
Among these, senior poverty and aging population are considered highly problematic around the world. Current status in Korea is particularly threatening. Among the 35 OECD countries, senior poverty rate is four times higher than the average, which signifies the highest level of senior poverty rate in the world. As the Korean welfare system began as late as in the 1990s, it is especially difficult to solve the crisis with government policies alone. Realistically, the quickest method would be to create more quality jobs for the senior citizens, but most businesses do not adopt these policies. Even if they do, they undergo difficulty with implementation.
On the other hand, CJ Logistics has linked these problems to actual parcel services, greatly improving job continuity and quality. ‘Senior Parcel Delivery,’ a representative CSV (Creating Shared Value) activity of CJ Logistics, is a model where seniors aged 60 or more participate in parcel delivery service of densely populated apartment areas using regional delivery base and eco-friendly equipment, such as electric carts.
At the same time, it is expanding its Senior Parcel Delivery as a private-public partnership project, which is reflected in the policies of local governments to create jobs for senior citizens. Therefore, Senior Parcel Delivery has expanded to incorporate with 1,400 seniors around 170 bases nationwide to have quality jobs by April 2018. In addition to seniors, other socially disadvantaged classes such as low-income families and those with developmental disabilities are also actively participating in the program.
Partner(s)
Ministry of Health and Welfare ; Ministry of Land, Infrastructure, and Transport ; Seoul Metropolitan City ; Busan City ; Incheon City ; Jeollanam-do Province ; Korea Labor Force Development Institute for the Aged ; The Korean Senior Citizens Association ; Korean Association for Supporting the SDGs for the UN