KT teams up with Singapore Post for digital logistics

Choi Kang-rim, left, head of KT's AI Mobility Business, poses with Singapore Post Vice President Eric Yeo, after signing an agreement to cooperate on AI-based logistics at KT's office in Seoul, Thursday. Courtesy of KT

By Baek Byung-yeul

KT forged a partnership with Singapore Post, a public postal logistics company in Singapore, to promote AI-based logistics and jointly develop new businesses in the digital logistics sector, the company said Monday.

KT has been utilizing LISFO, an AI logistics platform built on digital tuning technology, to provide services for suggesting optimal transportation routes. Under the agreement, KT and Singapore Post will pilot digital logistics transportation optimization in seven districts of Singapore utilizing KT's LISFO.

Singapore Post said it decided to cooperate with KT after seeing the need to optimize transportation routes and costs.

The two companies will use KT's AI-based prediction solution in the planning stages to calculate optimal travel routes and offload information to drive logistics optimization.

KT said it developed the AI prediction solution considering the specificity of Singapore Post's logistics operations and the local logistics environment there. The solution reflects complex variables such as the location of customers and Singapore Post's logistics center, cargo volume, vehicle type, real-time traffic information and arrival and departure criteria of cargo vehicles.

Prior to the project, KT analyzed Singapore Post's transportation data and estimated that optimizing transportation through LISFO can reduce total transportation distance by 27 percent and the number of vehicles driven by 15 percent.

Considering the potential of the fast-growing e-commerce market, Singapore Post is striving to strengthen its competitiveness in e-commerce logistics and has plans to promote digital transformation of the logistics industry by utilizing KT's AI, big data and global ICT know-how through the partnership.

“Considering Singapore's IT infrastructure and the maturity of the e-commerce market, the logistics market is challenging, but we believe we can demonstrate the potential for KT's digital transformation," said Choi Kang-rim, head of KT's AI Mobility Business, adding that the company will continue to expand its share in the global digital logistics industry.

“Singapore Post manages a vast amount of logistics big data every year, and with this, there are limitless possibilities for cooperation to create a paradigm of success with KT in Singapore,” Singapore Post Vice President Eric Yeo said.