CJ Logistics Ongoing AI Journey

Talk of the SaaS apocalypse is fading. But when it comes to AI, many companies still believe a forward-deployed, roll-your-own engineering approach is the right path. CJ Logistics is not one of those companies. They chose to work with their existing vendor, Infios, to add agentic AI to their core logistics processes.

About CJ Logistics

CJ Logistics is part of the CJ Group, a Korean conglomerate. North American arm of their logistics business, where CJ Logistics sits, will generate about $1.1 or $1.2 billion by year-end. They do business across the US, Canada, and Mexico. Roughly 40% of their revenues are generated from warehousing services, 40% from transportation – managed transportation, freight brokerage, and common carriage. The remainder is in forwarding.

“We’ve never really been a low-cost provider,” their COO Brad Nuffer explained. “We’re typically a partnership-driven solver of problems in a customer supply chain.”

The company has 25 million square feet of warehousing across 68 facilities. They move $4 billion in freight every year, mostly in managed transportation arrangements. When they do engage in common carriage, it is mostly as “a problem solver. We place trucks mostly in dedicated fleets to solve a customer’s business challenge in and around a plant,” Nuffer said. These high-volume dedicated operations are typically tethered with warehousing or freight forwarding.”

CJ Logistics and Infios

CJ Logistics managed transportation business is dependent on technology from Infios, whom they began working with in 2010 (it was known as MercuryGate then). To support managed trans, they needed to integrate with their customers’ warehouse management, and sometimes even manufacturing execution solutions. The Infios solution is flexible, and good at that. To support managed trans, transportation they needed to ship loads from different companies in the same truck. The transportation management system also has the associated allocation and billing logic around shared loads.