[THE INVESTOR] Samsung SDS said on March 8 that it will apply blockchain and artificial intelligence technologies to sharpen its logistics solutions.
“Samsung SDS has platforms to prove the efficacy of blockchain and AI in our logistics services,” said Hong Won-pyo, CEO of the IT and logistics solutions company, at a media conference in Pangyo.
He added that the Samsung affiliate would push the envelope to bring innovation to the overall logistics industry.
Hong Won-pyo, CEO of Samsung SDS
[INTERVIEW] Samsung SDS aims to expand blockchain footprint
Samsung SDS began utilizing AI and blockchain solutions for its logistics platform Cello a few years ago in collaboration with business partners, including global e-commerce and electronics retailers, for more efficient inventory management and overseas shipment.
In a pilot project with Samjin Food, a Busan-based fish cake manufacturer last year, Samsung SDS successfully implemented a blockchain-based system that tracks down the information of fish cakes from the origin of raw materials to the distribution of finished products. With connected apps, consumers could check all of this information, including the country of origin, manufacturer and manufacturing date.
“By utilizing blockchain technology, which prevents data from being forged or manipulated, Samsung SDS will try to provide trusted services for participants in the logistics process and supply chain,” said Jang In-soo, head of the Cello Platform team.
Samsung SDS is a member of a global shipping and blockchain consortium that includes various logistics, financial and IT firms -- including Korean container liner firm Sinokor, US cloud business firm Amazon Web Services, and KEB Hana Bank Global.
On the AI front, Samsung SDS’ AI solution has collected and analyzed data from 500 electronics retail shops in Germany and Austria in a bid to forecast Samsung Electronics’ TV sales during a “super deal” shopping season in 2016.
The AI solution was much more accurate than the salespeople were. For instance, it forecast that sales at the time would stand at 126,000 units, which was close to the actual sales of 124,000 units. A veteran Samsung salesperson had predicted 98,000.
The AI solution factored in around 40 variables, such as sale promotions, weather, demographics, and the average earnings of residents. The program has now added even more variables.
In 2017, Samsung SDS was ranked among the world’s top 10 logistics solutions firms in terms of airfreight volume, which reached 500,000 tons -- enough to fill 5,000 Boeing 747 commercial jets.
The Samsung affiliate depends for about 90 percent of its logistics services on other subsidiaries, mainly Samsung Electronics. Samsung SDS is hoping that its technological breakthroughs will lead to more business with non-Samsung customers.
By Kim Young-won (firstname.lastname@example.org)