Samsung SDS targets global logistics management market
Samsung SDS Research America Chief Technology Officer Shyam Pillalamarri introduces the risk-monitoring function of the Cello Square logistics management platform during a press conference at the company’s headquarters in Songpa-gu, eastern Seoul, Tuesday. / Courtesy of Samsung SDS
By Yoon Sung-won
Samsung SDS, the IT service affiliate of Samsung Group, is seeking to build an open platform where shippers and logistics companies worldwide can collaborate, boosting business efficiency with an advanced risk-management system.
The company has launched an integrated logistics management platform named “Cello Square,” aimed at small and medium enterprises (SMEs) that want to run distribution businesses globally.
“The logistics industry used to be lukewarm in accepting the latest IT technologies and remained in a paper-based business environment,” Samsung SDS Smart Logistics Business Team Senior Vice President Andrew Chang said during a press conference at the company’s headquarters in Seoul, Tuesday.
“But more recently, the export value of SMEs worldwide has reached 5 quadrillion won while the size of the business-to-business (B2B) e-commerce sector has grown to 2 quadrillion won. Such changes have led to a need for a global logistics market dedicated to SMEs.”
Introducing Cello Square as an “e-marketplace” for the global logistics industry, Chang said the new open platform has been designed to meet demands from small-scale shippers and logistics companies.
“Cello Square will help shippers save distribution costs and secure bargaining power to deal with business partners and logistics firms,” Chang said. “At the same time, it will offer logistics firms more business opportunities online to expand global cargo volume.”
Samsung SDS Research America Chief Technology Officer (CTO) Shyam Pillalamarri introduced Cello Square’s advanced risk-management system that provides monitoring of possible risks such as bad weather, disasters and port strikes.
He said the system will dramatically improve efficiency in the global logistics industry, helping enterprises establish less-risky and less-expensive shipping schedules and prepare contingency plans for unexpected situations.
Pillalamarri said the system scores the degree of risk of a certain shipping route on 0-10 scale by integrating multiple risk elements. It also compares the risk scores of possible routes to help companies make better decisions and mitigate losses.
The CTO said the company has worked with IT experts in Silicon Valley and universities such as Stanford to apply the latest machine learning and data analytics technologies to the unique risk-management system.
“Cello Square’s risk-monitoring system offers unique features that those of competitors’ do not provide,” he said. “It includes real-time risk assessment, global coverage and support on more diverse shipment modes such as airplane, shipping and train.”
Samsung SDS started the logistics management system business five years ago. It has concentrated on doing business with its affiliate Samsung Electronics. Under the partnership with one of the world’s largest electronics makers, Samsung SDS generated about 3 trillion won out of its 8 trillion won sales last year in its logistics management system business.
The company, however, is expected to need some time to make a profit from the new platform business as it aims to expand the platform in the global market for now.
“We will concentrate on building an ecosystem first and are still mulling over possible business models for the new platform,” Chang said. “For that reason, we will not charge companies for using the platform right now.”