Deep Dive: The CP AXTRA x CJ Logistics Partnership: The Key Piece to Becoming ASEAN’s Retail Tech Leader

CP AXTRA Public Company Limited, the wholesale and retail operator of the ‘Makro’ and ‘Lotus’s’ brands, has officially announced a partnership with CJ Logistics, a logistics giant from South Korea.

This collaboration marks a powerful synergy aimed at comprehensively elevating the entire supply chain, from product preparation and storage to distribution, to accommodate the exponential growth of e-commerce.

In this article, Techsauce will explore deeper into this deal, to see how it serves as a catalyst to push CP AXTRA toward its goal of becoming a leading Retail Technology company in ASEAN.

Who is CJ Logistics? And why are they interesting?

In the world of logistics, CJ Logistics is a true heavyweight with a 90-years history and robust transportation capabilities. Founded in 1930, it is South Korea's oldest logistics company, currently operating in 46 countries worldwide and covering both parcel delivery and international logistics.

Beyond its reach, CJ Logistics is a technology leader. They possess a specialized unit known as TES (Technology, Engineering, Systems & Solutions), which focuses on integrating AI, Big Data, and Robotics into warehouse operations.

In summary, CJ Logistics played a pivotal role in laying the foundation for South Korea to become one of the strongest e-commerce markets in the world–a market where e-commerce now accounts for 51% of the total retail sector.

Why Partner with CJ Logistics?

Transitioning from Modern Trade to becoming an Online Player is key to securing sustainable growth for the future.

Mr. Tanit Chearavanont, Group Chief Wholesale Business Officer, CP AXTRA, revealed that traditional retail is facing a pivotal challenge: E-commerce shifts consumer habits and captures massive market share. If Modern Trade businesses fail to pivot to the online world, they risk facing a collapse caused by technological disruption. The future of retail will be determined by the ability to provide a frictionless, seamless Omnichannel experience.

Furthermore, today’s challenges aren't just about moving goods from a warehouse to a branch. The real challenge lies in handling sales volatility, such as during Double Day promotions or Flash Deals. Traditional logistics systems may not be able to cope with these spikes. Consequently, new technology is required to provide Real-time data visibility and solve out-of-stock issues

CP AXTRA aims to become a leader among Retail Tech companies in ASEAN. To reach that milestone, they needed a world-class partner with specific expertise. CJ Logistics fit the bill perfectly, given their experience in the Korean market, where e-commerce is far more advanced than in Thailand.

How are CP AXTRA and CJ Logistics Collaborating?

1. Shifting Mindsets: From Silos to TCO

A classic problem in large organizations is the “Siloed system”. For example, a warehouse team might try to cut costs by packing a truck as tightly as possible. The result? Goods arrive damaged at the branch, making the total cost higher than before.

CJ Logistics helps look at the big picture using the TCO (Total Cost of Ownership) concept. This involves analyzing costs from upstream to downstream, not just at isolated points, to achieve true efficiency. They revealed interesting figures: implementing the CJ Logistics system has reduced the cross-docking time for warehouse-to-branch shipments from 72 hours to less than 24 hours.

Beyond technology, CJ Logistics also brings the cultural concept of ‘Palli Palli’ (Hurry up, in Korean).

In the Korean market, speed is a matter of survival. This aligns with modern consumer behavior where waiting is no longer an option. While E-commerce delivery used to be “Next Day,” consumers now demand “Same Day” or delivery within 2-3 hours. Consequently, supply chains must adapt to keep pace with these modern expectations.

2. Developing Technology and Logistics Systems

Total Control Tower: Jointly developing an integrated control center to manage and view data in real-time from start to finish. This allows for precise tracking of goods and reduces management issues.

Warehouse Management System (WMS): Co-developing a system to make warehouse operations faster and more accurate.

TES: CJ Logistics is deploying its Technology, Engineering, System & Solutions group to analyze and optimize infrastructure, transport flow, and managing distribution center networks for maximum efficiency.

3. Increasing Distribution Center Efficiency

The initial phase of cooperation begins with the management of the Cold Chain Distribution Center in Wang Noi District, Ayutthaya Province. This facility covers over 67,000 square meters and handles ambient, chilled, and frozen goods. There are plans to expand this cooperation to other wholesale distribution centers, covering over 164,000 square meters in the next phase.

CJ Logistics and CP AXTRA will work together to improve operations at Distribution Centers (CDCs) and reduce waiting times for all product.

4. Knowledge Transfer

Beyond systems and management, CP AXTRA and CJ Logistics are collaborating on technology transfer and personnel development to create value for partners and Thai SME operators.

It is clear that this partnership between CP AXTRA and CJ Logistics is not merely a quick fix for transportation issues. It is a crucial jigsaw piece that will transform a traditional wholesale-retail organization into a full-fledged regional 'Retail Tech Company.'

Adopting Total Control Tower technology and leveraging insights from a mature e-commerce market like South Korea are pivotal steps in modernizing CP AXTRA’s legacy operations. These advancements will enable the company to accelerate its transformation and strengthen its position as a leader in both the B2B and B2C markets across ASEAN.

Ultimately, this initiative sets a new benchmark for the Thai industry, signalling the shift toward a logistics and retail supply chain ecosystem that is genuinely powered by data and technology.