KPX Chemical, a mid-sized South Korean chemical firm and major producer of polypropylene glycol (PPG), has reported significant logistics savings and efficiency gains after adopting Samsung SDS's digital logistics platform 'Cello Square'. The platform, launched in 2021, manages the entire export-import process from quotation to tracking and settlement, helping the company reduce annual container penalty costs from KRW 400 million to KRW 100 million and double workforce productivity.
Logistics cost savings and efficiency gains
Kim Do-yeop, Executive Vice President of KPX Chemical, stated that Cello Square has effectively added an extra employee to the team. Tasks that previously required three staff members two weeks to complete can now be finished in a single day. The company has been using the platform since November 2022, achieving a 77% reduction in logistics costs and a 100% increase in operational efficiency.
Supply-chain impact
KPX Chemical, established in 1974 and part of KPX Holdings, produces PPG—a key raw material for polyurethane used in furniture, bedding, vehicles, appliances, and construction materials. The company holds a 50% market share in South Korea's PPG market, alongside SK Pyucore (35%), Kumho Petrochemical, and BASF Korea. With overseas sales now accounting for 58% of total revenue, the platform supports exports to over 100 countries, including the US, India, and Indonesia.
Compliance and logistics signals
Cello Square provided early warning of the US East Coast port strike in early August, allowing KPX Chemical to preemptively plan alternative routes via the US West Coast and inland transport. This proactive approach helped the company maintain logistics competitiveness compared to rivals. The platform also offers real-time data on shipping dates, locations, and logistics issues, which management uses for internal reporting and decision-making.
China sourcing context
KPX Chemical operates production facilities in Nanjing, China, as well as in Thailand, Indonesia, and Vietnam. The company plans to expand its overseas sales share to 60% and enter new markets in Eastern Europe and Turkey. While Cello Square is currently used only for outbound logistics, the company is considering extending its use to raw material procurement in the future.
Source: Read the original report | Published: October 29, 2024