NewsMarch 9, 2018 by Kelly Cromley

Samsung Implements AI, Blockchain To Smart Logistics Platform Cello

Samsung SDS, the IT solutions and logistics service arm of South Korea’s Samsung Group, provided updates about its smart logistics platform Cello. Samsung aims to better its rivals in the global logistics business with the smart logistics platform that leverages artificial intelligence and blockchain technology. Cello is an end-to-end integrated logistics solution that handles the logistics process from start to finish, including supply chain planning and optimization as well as transportation and warehouse management.

Samsung SDS became a contract logistics service provider in 2012, with the launch of Cello. In the recent years, the South Korean company started implementing AI and blockchain technology to its platform Cello. The software enables electronics retailers and food processing companies to improve efficiency, inventory management, and shipping process. Per Samsung, it is one of the handful of companies in the world which has successfully created viable and efficient logistics systems based on AI and blockchain.

Samsung SDS CEO Hong Won-pyo said

“For (new, emerging) technologies like blockchain, the most important task is creating many real-life use cases proving their utility and value. Blockchain technology itself is open-sourced. But it becomes useful only when it is combined with the right functions to serve a particular purposes in a particular industry. And I believe this is not something all companies can do.”

During the event, Samsung SDS elaborated how the logistics efficiency can be improved by using the firm’s artificial intelligence algorithms to generate systematic demand projections and guide inventory planning. Samsung has built an “AI-based Fulfillment Center” that generates sales projections for each product sold at a retailer. The projections are created using previous sales patterns. Samsung’s data analysis platform, Brightics AI, is used for this purpose.

Samsung tested its AI system at 428 store locations in Germany and 53 in Austria. The system was able to improve weekly demand projection by 25% to 28%, compared to a human sales expert. The time required for sales projections was only 10 minutes, instead of a day for a human. The company has also confirmed the benefits of applying blockchain to maritime shipping systems. A blockchain pilot project involving Korean fish cake manufacturer Samjin Amook was also conducted successfully. Buyers of fish cake were able to study various stages and locations the product went through before reaching the market.

In order to facilitate digital transactions and authentication procedures more secure and cost effective, Samsung SDS plans to apply blockchain technology to the finance and public sectors, in the future. The company has also set up Cello Square, an online marketplace, which can be used by clients to choose logistics services based on personal needs.

Samsung SDS anticipates to handle 488,000 tons of air cargo and 1.07 million units of twenty-foot equivalent ship cargo this year. Being one of the top 12 logistics companies by shipment volume, Samsung SDS currently operates 64 offices in 40 countries. The company earned 4.2 trillion won ($3.93 billion) in revenue last year.