CU Mongolia Enhances Logistics with Expanded Automated Center
The logistics landscape in Mongolia is rapidly evolving, and it is at the forefront of this transformation. As the retail sector expands, the need for efficient logistics solutions becomes increasingly critical. This expansion of the automated logistics center not only reflects the company’s commitment to innovation but also highlights the importance of sustainability and efficiency in modern supply chains.
ULAANBAATAR, Mongolia – The company, operated by South Korea’s BGF Retail, announced on July 8, 2025, the expansion of its pioneering automated logistics center, the first of its kind in Mongolia’s retail distribution sector. Located approximately two hours east of Ulaanbaatar, the center has grown from 1,500 pyeong to 2,500 pyeong, incorporating a Digital Picking System (DPS) to handle a capacity of 700 stores. This state-of-the-art facility is designed to meet the increasing demands of the retail market, ensuring competitiveness and responsiveness to consumer needs.
Advanced Technology Boosts Efficiency
Since its inception in 2023, the center has featured state-of-the-art systems mirroring Korean standards, including a Warehouse Management System (WMS), Digital Picking System (DPS), and Digital Assorting System (DAS). This expansion enables connections to multiple cities beyond Ulaanbaatar, enhancing distribution reach. Additionally, the integration of advanced robotics and automation technologies is streamlining logistics operations, reducing errors, and increasing speed. The introduction of an AI-based automatic ordering system in stores further improves demand forecasting and inventory management, allowing for swift responses to market changes.
The automated logistics center is designed not only for efficiency but also for sustainability. By utilizing energy-efficient technologies and eco-friendly practices, the company aims to reduce its carbon footprint and promote environmentally responsible logistics. This commitment to sustainability is increasingly important in today’s market, where consumers are more conscious of the environmental impact of their purchases.
Supporting Rapid Growth
In conclusion, the innovative logistics solutions and commitment to sustainability are driving success in the ever-evolving retail landscape. As it continues to expand its reach and enhance its operational capabilities, the company sets a positive example for others in the industry, demonstrating that growth and sustainability can go hand in hand. The future looks bright as it strives to lead the way in modern retail logistics by embracing technology, sustainability, and community engagement.
CU Mongolia is also committed to corporate social responsibility (CSR), engaging with local communities through various initiatives. These include supporting local farmers by sourcing ingredients for ready-made meals, thereby promoting sustainable agriculture and reducing transportation emissions. Such efforts reinforce CU Mongolia’s reputation as a socially responsible brand, resonating with consumers who prioritize ethical and sustainable practices.
Moreover, the company’s focus on digital transformation is paving the way for enhanced data analytics capabilities. By leveraging big data, CU Mongolia can gain valuable insights into consumer behavior and preferences, enabling more personalized marketing strategies and product offerings. This approach not only enhances customer loyalty but also drives sales by aligning product availability with consumer demand.
As CU Mongolia continues to expand, it also faces challenges in logistics management and supply chain optimization. The rapid growth of e-commerce in Mongolia necessitates ongoing improvements in delivery services and customer engagement strategies. By enhancing its last-mile delivery capabilities, CU Mongolia aims to ensure timely and efficient service, a critical factor for maintaining customer satisfaction in the digital age. Additionally, CU Mongolia is investing in employee training programs to equip its workforce with the skills needed to operate complex automated systems, thereby fostering a culture of continuous improvement and innovation.
With store numbers steadily increasing, CU Mongolia is bolstering its infrastructure to ensure stable operations. In 2021, it launched a 600-store capacity ready-to-eat food manufacturing plant—the first in the industry—planning to expand to 1,000 stores by next year. This strategic move is designed to cater to the growing demand for convenient food options among consumers. Kim Tae-han, Head of Overseas Operations at BGF Retail, noted, “Despite Mongolia’s per capita GDP being one-fifth of Korea’s, CU’s average revenue matches Korean levels, leading the retail market. We will continue to build advanced management systems and infrastructure for further growth.” In addition, CU Mongolia is exploring partnerships with local suppliers to enhance its supply chain resilience and support local economies.
With store numbers steadily increasing, CU Mongolia is bolstering infrastructure to ensure stable operations. In 2021, it launched a 600-store capacity ready-to-eat food manufacturing plant—the first in the industry—planning to expand to 1,000 stores by next year. Kim Tae-han, Head of Overseas Operations at BGF Retail, noted, “Despite Mongolia’s per capita GDP being one-fifth of Korea’s, CU’s average revenue matches Korean levels, leading the retail market. We will continue to build advanced management systems and infrastructure for further growth.”
This move positions CU as a leader in Mongolia’s retail sector, setting a benchmark for Korean brands globally. CU Mongolia is not just a retail chain; it is a model for how businesses can successfully integrate advanced technology and sustainable practices to thrive in a competitive landscape. Looking ahead, CU Mongolia plans to continue its commitment to innovation, ensuring it remains a key player in the retail sector and a pioneer in the region.