CJ Logistics announced on May 16 that it has signed a Logistics Project Collaboration MOU with Beez Logistics, a local logistics company in Saudi Arabia, in a strategic move to penetrate the Saudi Arabian logistics market.
Beez Logistics, headquartered in Riyadh, the capital of Saudi Arabia, has been providing comprehensive logistics services since 2017. The company serves various industries including food and beverage, pharmaceuticals, and health & beauty (H&B), offering services such as contract logistics, cold chain logistics, and last-mile delivery.
This agreement aims to leverage the logistics experience, technology, networks, and expertise of both companies, creating synergy to jointly expand their logistics operations in Saudi Arabia.
Both parties are considering various collaboration options to offer delivery services connected to the operation of Saudi GDC, a Middle Eastern regional logistics center for iHerb. The opening of this center is targeted for 2024. The term Global Distribution Center refers to a system where global e-commerce companies store their products in logistics centers in countries close to their consumers and quickly deliver them when orders come in.
CJ Logistics anticipates that leveraging Beez Logistics’ capabilities will enable the provision of delivery services in Saudi Arabia that are appropriately tailored to the country’s climate. Saudi Arabia, a typical desert region, generally has high temperatures and low rainfall. Utilizing Beez Logistics’ cold chain system and last-mile delivery network, it will be possible to safely deliver products throughout Saudi Arabia while maintaining appropriate temperatures.
Additionally, close collaboration with Beez Logistics, which has an established local business network and brand recognition, is expected to help CJ Logistics actively implement localization strategies. Through this partnership and network strengthening, CJ Logistics plans to expand logistics business opportunities not only with the Saudi government but also with local companies, securing a foothold for its full-scale entry into the Saudi logistics market.
Mussaad Almalohi, CEO of Beez Logistics, expressed considerable interest in e-commerce logistics related to the Korean health and beauty market, given the popularity of K-Beauty in the Middle East, particularly in Saudi Arabia. Almalohi was reportedly also deeply impressed by the advanced logistics technology employed in various logistics fields, such as the mega hub Gonjiam, which sorts parcels delivered nationwide, and smart packaging systems.