Samsung SDS “Detecting logistics risks with AI…from 1 day to 2 hours for response measures”

‘Logistics platform’ Chelosquare Media Day…”Extracting 60,000 news articles per day to determine logistics risks”

Samsung SDS Chief of Logistics Business Oh Gu-il [Photo by Choi Hyeon-seok]

‘(Seoul=Yonhap News) By Choi Hyeon-seok = Samsung SDS announced on the 20th that it has shortened the time for developing response strategies based on real-time supply chain risk detection using machine learning and generative AI (artificial intelligence) from a previous day to 2 hours starting this year.’

“On this day, Samsung SDS explained that it automatically extracts logistics risks using machine learning from over 60,000 global news articles collected daily at the ‘Chelosquare Media Day’ held at the Jamsil Campus.”

“Samsung SDS calculates the risk level of the extracted risks into 3 levels through generative AI. Samsung SDS developed a risk assessment model based on about 20,000 past global logistics risk cases, and trained the generative AI to assess the risk level.”

“Upon automatic identification of potentially affected logistics movements, Samsung SDS logistics experts quickly formulate response measures based on data analysis and professional knowledge.”

“In fact, Samsung SDS immediately detected the conflict situation between Israel and Iran last month using ‘AI-based risk sensing and analysis (Decision Intelligence),’ and informed customers that the anticipated arrival of air cargo to Israel would be affected. In preparation for escalation, they transported it by sea to countries such as Oman, the United Arab Emirates (UAE), and neighboring ports and provided alternative transportation methods using nearby countries, ensuring timely delivery.”

“Furthermore, Samsung SDS is implementing hyper-automation of customer service and logistics operations using generative AI through Cello Square, a digital logistics platform. Customers can utilize services such as estimating the required number of containers and extracting data on customer-specific movements and logistics costs through conversation with generative AI without clicking through menus. They have automated even simple and repetitive tasks in logistics operations that were difficult to automate using generative AI.”

“Samsung SDS also provides more precise predictive ETA information by analyzing past data to calculate expected ship travel times and port stay times. They are also increasing future cost visibility by predicting anomalies such as port anchorage fees, ship detentions, and maritime and air freight rates.”

“Through Chelosquare, Samsung SDS supports customers’ ESG (Environmental, Social, Governance) management by showing carbon emissions and carbon capture efficiency by transportation mode including air, sea, land, and rail, and is preparing various solutions to reduce carbon emissions.”

“Chief of Samsung SDS’s Logistics Business Oh Gu-il (Vice President) stated, ‘Due to ongoing global risks after COVID-19, customers’ demands for digital transformation of logistics are increasing. We will continue to provide sustainable logistics services amidst major changes in global supply chains using digital technologies and AI.'”

“Vice President Oh added, ‘Internally, we will test a system by the second half of the year that can automatically extract data and communicate with customers through interactive prompts (AI commands) and provide services. We aim to apply it to actual business by the end of this year and eventually integrate it into customer services.'”

“On this day, Samsung SDS held the ‘Chelosquare Conference 2024’ and invited industry stakeholders such as shippers, e-commerce sellers, and partners to share insights on global geopolitical changes, market trends, and digital transformation solutions for resolving supply chain risks.”

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