The Senior Parcel Delivery Service is a project that seniors over 60 years participate in as courier delivery persons. This innovation was developed by CJ Logistics and it is an improved version of the existing door-to-door delivery system that provides “drop point” stations in classified residential areas for time effective deliveries by senior workers. Three or four senior workers will share the amount of shipping units that existing couriers have to deliver. As a result, the physical burden to seniors is reduced, and more jobs can be created.
Gi Youn Kim
Fairleigh Dickinson University (FDU)
During the interview, Seung Hyun Lee, Chief Director of CSV Section, stated that the company places mutual benefits at its core values, creating a system that enables all stakeholders to co-exist and create something of value for both the company and society. CSV refers to “Creating a Shared Value,” and is a strategic management where businesses can find opportunities in social problems. Company leaders who place CSV in their management, focus on increasing the value of solving socio-economic problems for new customers and markets, making the product much more cost-efficient.
Seung Hyun explained during the interview that the idea of the Senior Parcel Delivery Service came about when the delivery service rate was decreasing and the population’s aging rate was increasing in the city of Busan, located in the Republic of South Korea. Busan city has the highest aging population rate in the country of South Korea. This is because the city’s residential areas were formed on ridges where refugees converged and settled during the Korean War in the 1950’s with many of the residents still are some of the original refugees from decades ago. It also has suffered a decrease in the delivery service rates and increase in the price of package deliveries because the city is surrounded by mountains which make it difficult for delivery trucks along with the area's layout of steep and narrow streets.
According to Seung Hyun, the Senior Parcel Delivery Service has positively influenced the local community as well as the environment and it is still striving to make more positive changes. The innovations have successfully organized a delivery system in a way that is both cost-efficient and promotes local economic growth. Due to its popularity, many more unemployed seniors have wanted to participate in the program, with many organizations partnering with the Senior Delivery Service and wanting to be part of the innovation.
The short-term effects of the delivery service are that by creating sustainable, high-quality jobs for the elderly, it also helps with the social issue of the high poverty rate among them (ranked #1 by the OECD). The delivery Service has also engaged in creating eco-friendly activities and community contributing efforts. From a long-term point of view, these kinds of projects will contribute to its competitiveness and profit-making activities.
This innovation benefit not only society but the business also. This innovation has now made it possible for the deliveries to be available in these areas at a lower price when compared to the companies that use traditional methods. By employing the electric carts, the company was able to create a new service and tap into a new market. The success of this innovation is shown by just how much they have expanded since the Senior Parcel Delivery Service has started. The employees are increasing in number and many more want to work for them because of how popular this delivering packages work has become for seniors.
One of the benefits of the Senior Parcel Delivery Service, said Seung Hyun, is based on the cooperative relations established by various stakeholders, including private enterprise (like CJ Logistics its parent company), the government at its various levels, and senior citizen employment groups. It can be viewed as a successful example of forming consensus and forming partnerships for the greater good.
Because there is a continuous growth in the delivery service market, it not only contributes to improvement in the quality of life for the seniors but also contributes to the development of the community by creating jobs by its continuous growth.
The environmental benefit of this service is in reducing the carbon footprint and the strategy of local delivery methods. About 300 eco-friendly electric carts have been deployed for the Senior Parcel Delivery Service, with the cart being able to carry up to 250Kg of packages at speeds up to 3 Km/h. Using these vehicles makes it much easier to navigate the streets than the traditional vehicles, along with a smaller carbon footprint than if the much larger trucks were still used.
Seung Hyun Lee, Creating a Shared Value (CSV) Specialist
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Business Website: https://www.cjlogistics.com/en/main
Year Founded: 1930
Number of Employees: 5001 to 10000
CJ Logistics started its Senior Parcel Delivery Service in 2007 and has expanded to employ over 1,400 senior citizens that work in 170 locations across South Korea today. The company has been providing jobs since 2007 for senior citizens who are over the age of 60. This helps in subsidizing the high poverty rate among senior citizens in South Korea and helping the community at large.