South Korean fulfillment startup Colosseum Corp. will open a logistics center in Los Angeles, California, next month, debuting its fulfilment solution “COLO” in an overseas market.
“We will cooperate with Korean listed cosmetics packaging company CTK in the United States in the same way as we do in Korea,” Colosseum’s CEO and founder Park Jinsu told Maeil Business Newspaper in a recent interview.
Colosseum established in June 2019 is a fulfillment startup that redesigns a workflow for warehouses and distribution centers to improve efficiency by using big data and artificial intelligence technology. A fulfillment center, a combination of storage facilities and a logistics center, offers all logistics processes needed to get a product from the seller to the customer. Amazon was the first to introduce the concept.
Colosseum does not possess its own warehouses. Instead, it shares some 30 warehouses and facilities in partnership. The warehouse provides space and manpower, while Colosseum provides software and cargo volume to create synergy. This means initial investment and fixed costs are not high for Colosseum’s business model.
Unlike existing warehouses that rely on operators’ personal experiences or work routines, Colosseum collects data, such as the movement of operators, through its own AI and deep learning system and applies the data to warehousing work to increase efficiency, Park explained.
Colosseum targets companies that do not have their own distribution centers. It has various warehouses to cover a variety of small-volume products that require specific storage conditions.
Colosseum has turned its attention to the global market as online sales by Korean companies or individuals to overseas markets are doubling every year.
Instead of establishing a local entity in the U.S., it will make an inroad into the market through partnership with local logistics companies, Park said. “All we have to do is make a global version of our solution and arrange an overseas channel. Then, you can sell Korean goods or foods to Japan, China and Southeast Asia.”
The concept has been selling well as the company handles 100,000 merchandises on average a month.
“Our business model enables faster profit than average. We anticipate our first monthly surplus in the first half of next year,” said Park, adding that the company will continue to expand in overseas markets beyond the U.S.
“We are confident that we will create a fulfillment logistics center that global sellers can use more comfortably.”
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]