Blockchain Added To Samsung SDS Logistics Platformbr>
Samsung SDS, the Internet technology solutions unit of Samsung Group, will be expanding its logistics business by applying advanced technologies, such as artificial intelligence (AI) and blockchain, to its smart logistics platform.
At a media conference for smart logistics in South Korea yesterday, Samsung SDS CEO Hong Won-pyo announced recent upgrades to its smart logistics platform, Cello, an integrated logistics solution handling the complete supply chain process end-to-end.
Hong said they applied big data, AI, IoT and blockchain technology to Cello. Based on the new service, retailers are expected to manage inventory efficiently with more accurate demand forecast. In the past, most retailers weren’t able to secure enough inventories due to limited spaces and inventory operation costs.
“For (new, emerging) technologies like blockchain, the most important task is creating many real-life use cases proving their utility and value,” said Hong. “Blockchain technology itself is open-sourced. But it becomes useful only when it is combined with the right functions to serve a particular [purpose] in a particular industry. And I believe this is not something all companies can do.”
The Korean logistics service provider first launched Cello in 2012 as a contract service provider to another Samsung subsidiary, Samsung Electronics, and has since been expanding into emerging technology via strategic investment as well as research and development. Cello’s previous endeavors include forays into food inventory management and international shipping procedures.
The firm has also established an AI-based “Fulfillment Center.” The center leverages the firm’s AI-based big data analysis platform, Brightics AI, and makes sales projections for each product sold at a retailer on the basis of its previous sales patterns.
Samsung SDS claimed that the AI system, applied at 428 store locations in Germany and 53 in Austria, was able to improve weekly demand projection by around 25 to 28 percentage points compared to a human sales expert. It also cut down the time needed for analytics down to 10 minutes, compared to a whole day for a human.
This year, Samsung SDS is expecting to handle roughly “488,000 tons of air cargo and 1.07 million units of twenty-foot equivalent ship cargo,” solidifying its business as one of the world’s largest logistics firms by shipment volume.
In November 2017, the Seoul Metropolitan Government, a local government in South Korea, partnered with Samsung SDS to apply blockchain technology to its administrative work across the city’s welfare, public safety and transportation affairs by 2022 to improve transparency operations and increase convenience for citizens.