Samsung SDS uses AI to manage customer supply chain risks

AI For Business


O Koo-il, executive vice president and head of logistics business at Samsung SDS, spoke at a press conference at the company's headquarters in Seoul on Monday.Provided by Samsung SDS

O Koo-il, executive vice president and head of logistics business at Samsung SDS, spoke at a press conference at the company's headquarters in Seoul on Monday.Provided by Samsung SDS

Written by Baek Byung Yeol

Samsung SDS announced on Monday that it is introducing AI into its digital logistics management services to help customers quickly detect risk factors and take countermeasures.

In the wake of the COVID-19 pandemic, global supply chains are facing a series of challenges, including geopolitical risks such as the Russia-Ukraine war and the Red Sea shipping crisis. Restructuring of global supply chains due to increased protectionism in the United States and Europe. And the issue of climate change.

Samsung SDS believes that effectively responding to these rapidly changing conditions requires digital transformation of logistics, and its Cello Square platform uses machine learning and generative AI to manage supply chain risks. Detect in real time and quickly develop response strategies.

O Koo-il, Executive Vice President and Head of Logistics Business at Samsung SDS, said: “Since the COVID-19 pandemic, we have seen increased demand from customers for digital transformation in logistics due to continued global risks. “There is,” he said. Press conference. “Samsung SDS will leverage digital technology and AI to provide sustainable logistics services that are unaffected by major changes in global supply chains.”

To analyze risks in logistics, Samsung SDS uses machine learning to automatically extract information from more than 60,000 global news articles collected daily.

The extracted risks are categorized into three risk levels using generative AI, and the company's logistics experts use data analysis and expertise to develop a response strategy within two hours.

In April, Samsung SDS detected a conflict between Israel and Iran and notified customers that air cargo arriving in Israel would be affected. The company then suggested alternative transportation options to help the customer complete the shipment on time.

Samsung SDS added that the introduction of generative AI has significantly improved the convenience of its digital logistics platform Cello Square.

“Until now, customers had to click on each menu to access information on Samsung SDS's digital logistics platform Cello Square,” O said. “But now, through conversations with generative AI, we can easily access services such as requesting a quote or calculating the required quantity of containers.”

The company believes that Cello Square not only predicts sea and air freight charges, but also abnormal situations such as port berthing fees and ship berths, and displays the carbon emissions and carbon intensity of each transport to help customers improve their environmental, social and corporate governance. It added that it would support management. methods such as air, sea, land, and rail.



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