Samsung SDS is accelerating efforts to expand its smart logistics business by making the most of AI and blockchain technologies with the goal of becoming a global platform business provider.
“Samsung SDS is transforming itself fast into a platform-oriented company based on its own smart logistics platform ‘Cello,’” Samsung SDS President Hong Won-pyo said in a meeting with reporters in Pangyo, Gyeonggi-do on March 8. Hong said his company will raise the efficiency and competitive edge of Cello by upgrading it with AI and blockhchain technologies.
Cello is an end-to-end platform specializing in each company’s overall logistics management ranging from raw material procurement to storage transfer and management and the last mile delivery to end-users.
Samsung SDS made its debut in the logistics business in 2012, but the business has emerged as a mainstay sector within four years as it saw sales swell to 4.2 trillion won annually. Of late, the company is striving to have Cello outfitted with AI and blockchain technologies.
A representative practice in focus is the application of the AI-activated big data analysis platform “Brightics AI” to sales analysis and inventory management.
Lim Ik-soon, general manager in charge of strategic business at Samsung SDS, said the application of the prediction system to 428 German and 53 Austrian electronics outlets turned out to reduce lead time from one day to 10 minutes and raise in accuracy from 55 percent to up to 80 percent.
President Hong introduced a pilot project of applying blockchian technology to Samjin Food, a fisheries product processing company based in Busan. He said information of a logistic career management system, including warehousing, processing, packing and marketing, cannot be fabricated.
Senior Executive Vice President Kim Hyung-tae, head of the Logistics Business Division at Samsung SDS, said his company aims to convert international traders’ all documents to a blockchain mode. Diverse regulations each country imposes are the tasks that need to be addressed urgently, he added.
Samsung SDS Declares ‘2020 Vision’
President Hong Won-pyo, who took office as CEO last November, unveiled the “2020 Vision” on Jan. 31. Samsung SDS is stepping on the gas to develop new markets based on such platforms and solutions as block chain, AK, cloud, and big data analytics that will lead innovation of the IT sector in the advent of the 4th Industrial Revolution. The company plans to expand global businesses.
In his New Year’s message, President Hong designated 2018 as a year in which the company will lay a foundation “to become Samsung SDS for a new era.”
He set four management tenets, including innovation synergy and platform growth. President Hong unveiled a plan to ramp up businesses based on platforms and solutions to maintain solid growth. Samsung SDS boasts Nexledger, a blockchain solution optimized for enterprises. The company has already employed Nexledger in such areas as logistics, manufacturing, public entity, and financing. It is leading blockchain infrastructure businesses.
Samsung SDS offers services tailored to meet customers’ needs like On-Premise for blockchain platform, PaaS for cloud platform and SaaS for cloud services. The company plans to evolve convergence technologies of AI. Cloud, big data analytics, and IoT into integrated platforms will lead full-fledged IT innovation.