"A cold storage warehouse isn't just a place to rent space. It should be a 'smart cold chain platform' that manages risks in the livestock supply chain and creates value through data."
Ace Refrigeration, with 35 years of experience, is revolutionizing the traditional logistics industry. The company recently received Smart Logistics Center certification from the Ministry of Land, Infrastructure and Transport, attracting industry attention.
Breaking the "Black Box" of Livestock Logistics: Data-Driven Smartness
"While existing cold storage facilities were focused on 'providing space,' we are evolving into 'data-driven operations centers.'"
Ace Refrigeration's competitive edge lies in its transparency and visibility. While cold chain logistics in the past relied on post-accident response methods, identifying the cause after an incident occurred, Ace Refrigeration has established a real-time monitoring system by combining IoT sensors and a warehouse management system (WMS).
These technological investments have led to tangible results. Demand forecasting, previously based on past experience, has shifted to data analysis. This has improved peak season shipment processing speed by 20% and boosted the response rate for urgent shipments. CEO Kim stated, "This proves our management principle of relying on experience but making decisions based on data."
A one-stop service from bonded warehouse to distribution, reducing logistics costs by 15%.
Another strength of Ace Refrigeration is its "one-stop operation model," which handles everything from livestock product import customs clearance (bonded) to processing, storage, and fulfillment. Currently, its three centers in the metropolitan area are functionally divided. The Giheung center serves as a large hub with a capacity of 20,000 tons. The remaining centers specialize in processing and small, high-frequency shipments, allowing for flexible response.
He emphasized, "After customs clearance, processing and packing are done on-site, without the need to move to another processing facility. This eliminates the risks associated with physical distance and time." He added, "This is resulting in tangible results, reducing our customers' lead times by 20% and cutting overall logistics costs by 15%."
Recently, the company has expanded beyond B2B to B2C. Operating its own retail brand, "Butcher's Garden," the company is experiencing firsthand consumer reactions and inventory turnover. CEO Kim explained, "Based on the belief that 'understanding the end-to-end distribution chain is essential for advanced logistics,' we are strengthening our partnerships by sharing the data and expertise we've gained here with our B2B clients."
Safety is an investment, not a cost… People-centered ESG management
In the high-risk cold chain industry, Ace Refrigeration is committed to advanced safety management to maintain an accident-free workplace. This commitment includes completely separating forklift and pedestrian traffic and conducting regular monthly voluntary safety inspections across all centers.
"A minor accident triggered us to view safety as an investment, not a cost. Initially, there was significant resistance from the field, but as accident rates decreased and work efficiency improved, 'no accident cover-ups' became firmly established as a strong organizational culture."
From an environmental management perspective, we are focusing on optimizing power consumption, including replacing high-efficiency refrigeration equipment and replacing all LEDs, taking into account the energy-intensive nature of the industry. This not only reduces carbon emissions but also enhances customer service competitiveness by reducing operating costs.
"It will become the standard model for the livestock cold chain in Korea."
Ace Refrigeration is focusing on smart advancements and strengthening its organizational capabilities. Its decision is that "strengthening internal controls and solidifying profitability is a priority over excessive external expansion or an IPO."
CEO Kim also offered some advice to the industry. "A regrettable misconception is that 'all cold storage facilities are similar, so just go with the cheapest.' In reality, it's the invisible quality of operations and safety, rather than the visible rent, that determines overall logistics costs."
Within the next few years, Ace Refrigeration plans to expand the successful model of the Giheung Center to other centers and refine its AI-based demand forecasting. Ace Refrigeration's path forward, striving to create a new standard for livestock logistics in Korea through a structure where technology and people grow together, is highly anticipated.
Ace Refrigeration Key Indicators and Plans
* Business Model: A cold chain platform that integrates the entire process from livestock product import to processing and distribution.
* Key achievements: 20% reduction in lead time and 15% reduction in logistics costs.
* Facility status: 3 centers in the metropolitan area, including Giheung Smart Logistics Center (capacity of approximately 20,000 tons)
* Future Strategy: Refining AI-based demand forecasting, gradually expanding automated facilities, and building an integrated dashboard.
* Corporate Vision: Establish a standard model for the livestock cold chain in Korea and build a safe and transparent logistics system.
You must be logged in to post a comment.