Lotte Chilsung opens fully automated beverage DC

Dematic has successfully deployed an advanced integrated logistics solution at Lotte Chilsung Beverage’s Bupyeong Logistics Centre.

Lotte Chilsung, a Korean beverage producer, consolidated four existing distribution facilities into a single logistics hub in Bupyeong.

The site covers approximately 8300 m² with a height of 42 m and a capacity of 9000 pallets. It services more than 1.2 million cases of beverages annually across convenience stores, ecommerce platforms, general retailers, and food and beverage providers.

Facing challenges including rising labour costs, worker fatigue and growing demand for small-batch, multi-product orders, the company selected Dematic to design a solution that could address these pressures while also enabling precise, high-speed fulfilment within a limited urban footprint.

Dematic delivered a fully integrated system incorporating a high-density 40 m automated storage and retrieval system (AS/RS) for space-efficient pallet storage, a Dematic Multishuttle system for carton buffering and sequencing, robotic layer picking for automated layer handling, and RapidPall palletising cells that build optimised mixed-case pallets.

Additionally, an automated dispatch buffer equipped with pallet shuttle technology reduces staging space requirements and enables rapid truck loading. All components are centrally managed by the Dematic warehouse control system (WCS) that is integrated with Lotte Chilsung’s enterprise systems.

Since go-live, the solution has reduced manual processes and has improved picking accuracy and delivery responsiveness while providing real-time inventory visibility and traceability.

“In a market where small, mixed orders are the new norm, Dematic’s automated system has transformed our logistics operations,” said Shim Kyung-seop, Director of Lotte Chilsung’s Bupyeong Logistics Centre. “It has dramatically improved order accuracy, reduced delivery times and enhanced overall customer satisfaction, while also relieving the strain on our workforce.”

By implementing Dematic’s automated system, Lotte Chilsung has improved logistics efficiency within a compact footprint, reducing its reliance on manual labour and lowering operational costs. The new system also provides real-time visibility into inventory and product movement.

Michael Bradshaw, Vice President of Solution Development for Dematic Asia Pacific, said, “This is more than a technology deployment; it’s a landmark project that sets a new standard for beverage logistics in Asia. Our team designed a solution tailored to addressing Lotte Chilsung’s operational challenges, delivering measurable and sustainable business outcomes.”

The new facility represents a major step in Lotte Chilsung’s digital transformation and sustainability roadmap. With automation playing a growing role in its logistics strategy, the company plans to continue working with Dematic to develop future-ready supply chain solutions across Korea.

Image supplied by Dematic.