President & CEO Hwang Sung-woo of Samsung SDS. (Photo: Samsung SDS)

Samsung SDS saw its Q2 sales and operating profit surge 26.7 percent and 12.2 percent, respectively, over a year earlier on the back of rising IT services and logistics businesses.

Samsung SDS said in an electronic filing on July 27 the company logged 3,250.9 billion won in Q2 sales and 224.7 billion won in Q2 operating profit.

Looking into each business, the IT service business saw its sales rise 5.5 percent year-on-year to 1,391.9 billion won.

The IT platform-based logistics business chalked up 1,859 billion won, a 49.1 percent year-on-year jump. In particular, the logistics business saw sales swell thanks to rising IT product shipment volumes.

The IT service business, buffeted by the ramifications of the COVID-19 pandemic, continued to rebound on the back of the recovery of corporate customers’ investments in the IT sector.

The run of the ITG service business was owed primarily to an increasing number of companies who shifted to cloud computing and the diversification of the enterprise resource planning (ERP) business.

More smart factories and the globalization of corporate mobile management solutions also played a part.

Senior Executive Vice President Ahn Jung-tae, head of Samsung SDS’s management support office, said Samsung SDS’s good business performance was attributable to the expansion of a corporate shift into cloud computing, diversifying the ERP business to machinery, secondary battery, chemical and construction industries and the adoption of smart factories.

The expansion of “Brity Meeting,” a teleconference solution for telecommuting and “Brity RPA,” an AI-enabled automation process, also contributed, he said.

The logistics business saw sales jump about 50 percent year-on-year on the back of rising IT product shipment volumes and increasing marine logistics fares.

Senior Executive Vice President Ahn said the logistics business put up a good show on the back of rising sales of home appliances such as TVs, influenced by the recovery of consumption sentiment and rising shipment volumes of major clients and the securing of new clients. Investments into the IT sector are predicted to expand in the second half.

Samsung SDS Unveils Cello Square Platform for SMEs

Samsung SDS unveiled Cello Square 4.0 to support small and medium-sized export companies in Korea who are looking to enter overseas markets.

At the ‘Cello Conference 2021’ held on May 13, the company announced its plan to provide Cello Square 4.0, which provides optimized global transportation and other specialized services based on new digital technologies from August.

Cello Square 4.0 automatically recommends optimal routes based on a shipper’s cargo details, requested departure and arrival locations, and available freight schedules.

Shippers can easily track real-time location of the cargo and check potential risks at a glance. Once the transport is complete, Cello Square automatically settles the bill and suggests future plans for cost reduction along with data analysis report.

Samsung SDS also presented specialized services packed with new digital technologies such as artificial intelligence, Internet of Things and blockchain.

Through Cello Square, shippers can receive transportation operation service that monitors real-time delivery status of expensive goods or products that are sensitive to temperature, humidity and shock.

Cello Square also recommends optimal delivery space by analyzing cargo size and quantity with AI technology.

The company introduced ‘Air Freight Re-forwarding’ service for shippers to reduce freight rates in case of long-distance delivery by taking advantage of Samsung SDS’s distribution centers at major transit locations in Dubai, Miami, Hong Kong and etc.

Moreover, the service line-up includes ‘Ocean Transportation Service to Amazon Warehouse,’ which will support the export shipment of SMEs’ goods in Korea to overseas Amazon distribution centers including United States and Japan, and provide consulting for complex customs clearance procedures.

Kooil O, senior vice president and leader of Logistics Business Division at Samsung SDS, said, “We will actively support small and medium-sized export companies to successfully enter the overseas market with our competitive logistics services of Cello Square 4.0.”