Expanding smart logistics business by introducing blockchain and artificial intelligence
We are rapidly transitioning to a platform business.

Samsung SDS announced that it is expanding its smart logistics business by linking artificial intelligence (AI) and blockchain to its logistics platform, ‘Cello.’

The solutions introduced by Samsung SDS on this day are Cello BPO, Cello PLUS, and Cello SQUARE. Cello BPO, which adds consulting, demand/supply planning, and SCM (supply management chain) optimization functions to the traditional 3PL system, is a 4PL service. Kim Hyung-tae, head of the logistics business division (vice president), explained, “There have been requests from customers to improve logistics processing. Accordingly, we are providing 4PL by combining outsourcing plus information systems and consulting capabilities.”

Cello Plus, a smart logistics solution, is in version 5 and integrates big data, IoT, artificial intelligence, and blockchain to provide real-time visibility within the supply chain, increase reliability with secure transaction records, and derive insights from logistics data. Cello Square, an e-commerce service targeting small and medium-sized businesses, is planning to launch a pilot version 3.0 this month and launch the service in June.

On this day, Samsung SDS announced the results of applying its own artificial intelligence-based big data analysis platform, 'Brightics AI', to the stores of a European electronics distribution company over the past year and a half. It was explained that the sales forecast accuracy of Brightics AI was improved by more than 25% points compared to the sales demand predicted by existing experienced salespeople.

Lim Ik-soon, head of the strategic business team (deputy manager), said, “The key is to basically predict sales and manage inventory,” and introduced it as “a logistics service that builds a fulfillment center capable of integrated management through sales volume prediction, and enables direct home delivery from the fulfillment center when inventory is insufficient.”

Samsung SDS has been incorporating blockchain into its logistics services since 2018, taking advantage of blockchain’s tamper-proof, reliable, and easy information sharing capabilities. The purpose of the ‘Distribution History Management System’ is to transparently share all information on the production and distribution process from receipt to processing, packaging, and sales.

We introduced a pilot case of 'Samjin Fish Cake' that is applying the distribution history management system. In the case of fresh food, information on the origin, production date, and expiration date are necessary for food safety. Jang In-su, head of the Cello Platform Team (Senior Managing Director), explained, "We have been managing data in the past. However, our goal is to provide the information that companies and consumers want through blockchain. We also want to increase high interconnection compatibility and compatibility with other industries."

He continued, “We started forming a shipping logistics blockchain consortium last year, and currently 38 member companies are participating. “This year, we plan to expand our business to include proof of origin, distribution history management, trade finance, visibility, and data sharing,” he said.

Hong Won-pyo, CEO of Samsung SDS, said, “The issue with blockchain-related platforms is how many practical cases they can secure and how much their utility can be verified through them,” and added, “Our strength is that we are advancing Cello by incorporating new technologies such as blockchain and AI. We are quickly changing to focus on platform businesses.”

Meanwhile, Samsung SDS also held the 'Cello Conference 2018' on the same day, where people from various industries including logistics, manufacturing, and distribution attended to share smart logistics innovation cases and trends.