“Cold chain logistics has been a pain point for shippers. It is a field where various value-added services, such as packaging and temperature monitoring, and the supply and demand of refrigerated and frozen vehicles are intertwined, but there is no service that provides turn-key solutions. We felt it was GoGoX Korea’s job to solve this problem. We will provide innovative logistics services that anticipate customer needs in advance and respond to them.”
– Andrew Nam, Managing Director of GoGoX Korea
GoGoX: Leading the charge in cold chain logistics in Korea
GoGoX is a leading logistics tech company in Asia, providing customized logistics solutions through innovative tech across over 360 cities. Since entering the Korean market in 2014, GoGoX has offered both app-based orders and customized solutions for enterprise customers. In our ongoing effort to innovate and better serve the logistics scene in Korea, we recently launched cold chain services that ensure precise management of packaging and temperature control.
Andrew Nam, Managing Director of GoGoX Korea, recently sat down with Lee Ji Wan, a reporter from Cold Chain News Korea, to discuss the cold chain logistics industry in Korea and how GoGoX’s customized solutions address client pain points.
▎What kind of company is GoGoX Korea?
GoGoX Korea is a global logistics technology platform that manages the entire logistics process from first mile to last mile, providing customized logistics services powered by technology. We currently serve over 850 clients.
▎How has the company grown since its establishment in 2014?
Founded as ‘GoGoVan Korea,’ GoGoX Korea has rapidly evolved into a platform connecting small business owners and cargo owners with drivers. We started out doing mostly small cargo transportation, focusing on solving logistics challenges for small and medium-sized enterprises. Over time, our service offerings expanded to include B2B logistics, urgent deliveries, and large-scale logistics solutions, thereby broadening our customer base across various industries. We have also established strategic partnerships to enhance our market presence.
In addressing common issues in the transportation sector, such as real-time communication deficits and dispatch delays, we have digitized our logistics processes through technological innovations. This allows our clients to track shipments in real time, optimizing the logistics process and maximizing efficiency. Our commitment to enhancing service quality and customer support remains a top priority.
We offer customized logistics services tailored to the diverse needs of the domestic market, including white glove transportation, which encompasses internal delivery, packaging, assembly, and installation, ensuring we meet the unique requirements of our clients. With these customer-centric services, we are at the forefront of the domestic transportation market, particularly in the middle-mile logistics sector.
▎What is GoGoX Korea’s competitiveness in middle mile logistics?
GoGoX Korea stands out as the only platform in the domestic market with its own driver network, covering everything from motorcycles to cargo vehicles. This independent network allows us to respond to the logistics needs of both general and corporate clients with greater flexibility and speed. We systematically track and manage the service quality of our registered drivers, evidenced by our strong corporate customer references across various industries.
Additionally, we offer user-friendly solutions for general customers via our app, facilitating services from quick deliveries to small-scale moving. Our approach enhances transparency, resolving common inconveniences associated with delivery inquiries. Furthermore, our synergy with international logistics through collaborations with overseas branches adds to our competitive edge.
▎Can you share a few customer success stories from GoGoX Korea?
A notable example from the food sector is our catering service for CJ Freshway (CJFW), which provides employee meals to companies without in-house cafeterias. We transport meals from CJFW’s base kitchens, maintaining the correct temperature, as even slight delays can disrupt meal schedules. Through customization, our service goes beyond simple delivery; we assist in setting up catering venues, arranging tables, and collecting leftovers, while also checking the health certificates of the drivers and facilitating on-site feedback for CJFW.
In the bio sector, our driver management capabilities stand out in our collaboration with IDEXX Laboratories. We transport various samples from veterinary hospitals throughout the metropolitan area to a designated laboratory cold room, ensuring constant temperatures of 2-8 degrees, 24/7. Our extensive driver infrastructure allows us to cover all orders effectively, with a system in place to monitor driver performance.
▎ Why did you decide to offer cold chain services?
Cold chain logistics has historically presented challenges for many customers due to inadequate real-time temperature monitoring solutions and a lack of available refrigerated transport vehicles. Additionally, shippers often have to sign fragmented contracts with various specialized suppliers, due to the lack of turnkey services in the market, leading to operational inefficiencies in high-speed, precision-demanding cold chain transport.
Recognizing these issues, including unreasonable pricing and the fragmented nature of service providers, we identified a significant opportunity. Our goal was to address the pain points in cold chain logistics and develop comprehensive solutions, prompting our focused investment in this sector.
▎What is the importance of specialized transporters for pharmaceutical logistics?
Utilizing unskilled transporters for biospecimen transportation poses significant risks. A foundational understanding of biospecimens is critical, along with expertise in temperature monitoring, refrigerant management, and effective communication with healthcare professionals. While the work resembles general quick-service delivery, it demands specialized skill sets.
Training such drivers is challenging due to unpredictable and irregular orders. Understanding these dynamics, we leverage our on-demand platform capabilities to maintain a pool of trained professional drivers who can effectively manage unique situations.
▎What methods are used for temperature monitoring in cold chain logistics?
The first method involves temperature recorders attached to delivery vehicles, primarily for food transport. GoGoX Korea utilizes its own order management system (OMS) and transportation management system (TMS) to monitor and document temperature records throughout the delivery process. These records are provided to customers in an easily accessible electronic format.
The second method involves constant temperature packaging, particularly for bio-transportation. After preconditioning, drivers monitor the temperature using LTE or Bluetooth technology during delivery. This process, traditionally managed by shippers’ logistics staff, is now streamlined through our trained drivers, who ensure accurate temperature control and provide real-time data logging accessible to customers via our dashboard.
▎How do refrigerants and packaging work?
The type of refrigerants and packaging used varies depending on the required temperatures and the physical characteristics of the cargo. Regulations differ for domestic and export shipments as well. GoGoX Korea has partnered with suppliers experienced in various bio sectors to offer turnkey services tailored to customer needs. While we can provide our own refrigerants and packaging, we also accommodate customers with existing packaging contracts. Depending on the nature of the transportation contract, we deploy specialized drivers alongside sales and operations personnel familiar with the specific requirements.
▎How many drivers are registered on your platform?
Currently, there are approximately 23,000 drivers on our platform, utilizing a range of vehicles, including motorcycles, vans, and trucks over one ton.
A key factor in GoGoX Korea’s growth has been our commitment to driver communication. We actively listened to driver feedback, gaining insights into challenges that might otherwise go unnoticed. This emphasis on communication has fostered mutual understanding between drivers and our team.
To facilitate smooth communication, we hold regular offline meetings and maintain an active online community through a dedicated Naver café. Our office common area serves as a space for employees and drivers to connect, share opinions, and explore ways to grow together.
Our driver app is a direct result of this collaborative approach, as well as offering a weekly settlement system for fare payments and an automated tax invoicing feature for convenience.
▎How do you improve accuracy and speed in logistics operations?
Achieving accuracy and speed relies on maintaining a stable infrastructure of highly skilled and experienced drivers. Additionally, effective monitoring by operational staff and the integration of IT systems such as OMS and TMS play crucial roles.
GoGoX Korea continuously develops internal tools and trains professional drivers. Our dedicated solution team specializes in designing bio and food transportation tasks tailored to site-specific needs, ensuring we meet our customers’ demands for accuracy and speed.
Ultimately, our goal is to master the standard operating processes (SOPs) of our clients to enhance customer satisfaction.
▎What are your future plans?
GoGoX Korea is positioning itself as a logistics platform that creates new value in the domestic transportation market, building on the capabilities we have developed through tailored transportation solutions.
In particular, we aim to leverage our expertise in cold chain logistics to provide customized solutions for businesses requiring such services. We also plan to expand our reach into the small and medium business (SMB) sector, where there are over one million potential clients, many of whom lack adequate logistics services. GoGoX Korea intends to address these logistical challenges by offering a range of transportation services, including cold chain solutions.
To achieve these goals, we will continue to innovate logistics services that anticipate and meet our clients’ needs. Additionally, we are committed to investing in autonomous driving and robot delivery technologies using AI, positioning ourselves as a leader in the future logistics industry.