Hyundai Glovis will start a win-win cooperation by supporting small and medium-sized logistics partners and cooperative truck drivers.
On July 9, Hyundai Glovis announced that it would pay service fees in cash to all small and medium-sized business partners it deals with, and set up a win-win fund to operate various support programs for cooperative truck drivers who are sole proprietors.
Accordingly, the company announced a plan for win-win cooperation, focusing on ▲ cash payment of transaction proceeds to small and medium-sized business partners ▲ creation of a logistics sharing fund ▲ operation of a win-win and companion fund ▲ safe workplace and support for corona prevention.
‘2 trillion won in transaction value per year’, 100% cash payment to suppliers… Early payment before holidays
Hyundai Glovis will pay the full amount of the transaction amount of KRW 2 trillion per year in cash to about 700 small and medium-sized logistics partners who are experiencing economic difficulties in the aftermath of COVID-19. The target of payment is small and medium-sized enterprises (SMEs) specified in the Subcontracting Act, and plans to continue paying cash until the end of COVID-19.
In addition, during Lunar New Year and Chuseok, when capital requirements are temporarily concentrated, the transaction amount will be paid earlier than the original payment date to ease the burden on business partners. From Chuseok this year, 120 billion won in cash will be paid in advance.
The change of the transaction payment method from the existing bill to 100% cash payment is expected to help business partners solve their financial difficulties. At the same time, we plan to form a consensus so that the first-tier suppliers who were paid in cash will also pay the transaction amount in cash to the second and third-tier suppliers who are doing their own business.
Until now, Hyundai Glovis has been promoting sustainable growth through win-win development with partners. Last year, it was also selected as the highest-ranking company in recognition of its efforts for win-win management and compliance with fair trade in the 'ship-owner-shipper-owner-excellent win-win win-win company' certification system first introduced by the government last year.
Creation of 20 billion won ‘Logistics Sharing Fund’… Support for occupational accident prevention activities and the livelihood of cooperative technicians.
Hyundai Glovis also created a 20 billion won ‘Logistics Sharing Fund’ to support the prevention of industrial accidents and overcome the corona virus at logistics sites.
As awareness of the prevention of industrial accidents has increased in society as a whole, Hyundai Glovis has continued activities such as campaigns to spread awareness of safe driving and distribution of safe driving products. It is expected that a broader safety net can be built through the logistics sharing fund created this time.
The fund is also used to support cooperating drivers to overcome Corona. An emergency livelihood fund of up to 1.5 million won per person is provided to drivers who cannot drive their vehicles due to COVID-19 confirmation.
In addition, Hyundai Glovis will continue to operate the ‘Win-Win Partnership Fund’ worth 20 billion won to support business expansion and investment in new businesses of logistics partners, and the Win-Win Cooperation Fund (8 billion won) for cooperative cargo drivers.
Through the Win-Win Partnership Fund, the logistics partner's facility investment, etc. can be carried out without any setbacks, and the cooperative freight driver also pays some interest on loans from financial institutions to purchase vehicles.
The Win-Win Cooperation Fund is used to provide various convenience facilities such as resting tables and gardens at rest stops on highways where trucks are frequently visited. For the safety of employees of partner companies, an image recognition alarm system is installed on forklifts, and safety equipment such as automatic defibrillators and safety boots is provided. In order to establish the on-site safety management system, an external professional organization is appointed and safety training is conducted.
In addition, through the Logistics Industry Promotion Foundation established in 2013, Hyundai Glovis plans to continue various activities such as management consulting for small and medium-sized logistics partners, training for logistics workers, holding seminars, and improving the environment of logistics sites.
An official from Hyundai Glovis said, “We have prepared several measures to participate in the government’s efforts to overcome the economic crisis and to prepare a win-win policy for large and small logistics companies.
