Samsung SDS manages customers' supply chain risk with AI

O Koo-il, executive vice president and head of Logistics Business Division at Samsung SDS, speaks during a press conference at the company’s headquarters in Seoul, Monday. Courtesy of Samsung SDS

Samsung SDS is introducing AI to its digital logistics management service to help customers quickly detect risk factors and take countermeasures, the company said Monday.

Following the COVID-19 pandemic, global supply chains have faced a series of challenges, including geopolitical risks such as the Russia-Ukraine war and the Red Sea shipping crisis; global supply chain restructuring due to the strengthening of protectionism in the United States and Europe; and climate change issues.

Samsung SDS believes that the digital transformation of logistics is necessary to effectively respond to these rapidly changing situations, and its Cello Square platform uses machine learning and generative AI to detect supply chain risks in real-time and quickly formulate response strategies.

"Due to the continuous global risks since the COVID-19 pandemic, there is a growing demand for digital transformation in logistics from customers," O Koo-il, executive vice president and head of the Logistics Business Division at Samsung SDS, said during a press conference. "Samsung SDS will provide sustainable logistics services that are not affected by major changes in the global supply chain using digital technology and AI."

To analyze risks in logistics, Samsung SDS automatically extracts information from over 60,000 global news articles collected daily using machine learning.

The extracted risks are then classified into three levels of risk using generative AI, and the company's logistics experts use data analysis and expertise to formulate response strategies within two hours, the company said.

In April, Samsung SDS detected a conflict between Israel and Iran and informed customers that there would be an impact on air cargo arriving in Israel. The company then suggested alternative transportation measures, allowing customers to complete their scheduled shipments.

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

"Customers previously had to click on each menu to access information on Samsung SDS's digital logistics platform Cello Square," O said. "However, now they can easily use services such as inquiry of quotations and calculation of required container quantities through a conversation with generative AI."

The company added that Cello Square also predicts abnormal situations, such as port detention fees and vessel detention, as well as ocean and air freight rates, and supports customers' environmental, social and corporate governance management by showing carbon emissions and carbon intensity by each transportation method, such as air, sea, land and rail.