Contract Logistics

Smart Logistics in the Age of Industry 4.0 (2)

The fourth industrial revolution or Industry 4.0, once regarded as some vague notion, is now increasingly reinventing a number of industries. This white paper examines how Industry 4.0 is transforming logistics and what Samsung SDS is doing to lead the trend.

In the last issue (2018 i4L White Paper No.25), we covered the overview of Logistics 4.0, its latest trends as well as application cases in logistics and SCM. Future advancements in logistics will capitalize on the core technologies leading the revolution − AI, big data analytics, IoT, blockchain, and robotics − to achieve the following: transition of the logistics industry from a labor-intensive industry into an industry supported by intelligent and autonomous systems; mutual reliability among a number of stakeholders involved in the supply chain; and speedy logistics services that end-consumers want while reducing operating expenses.

In the second part of this white paper series, we will take a closer look into Logistics 4.0 and logistics services that Samsung SDS is developing amidst these trends.

Logistics 4.0 Trends

Samsung SDS Smart Logistics

Among the technologies of the Fourth Industrial Revolution, Samsung SDS applies big data analytics, IoT, AI, and blockchain to its logistics services.

IoT-Based Logistics Visibility

According to the research firm IHS Markit, as of 2017, around 27 billion IoT devices are connected to the Internet across the world. The number is expected to rise at an average rate of 12 percent a year, reaching 1.25 trillion by 2030. This trend will raise the importance of data collected with IoT devices and applications that use such data in the future.

Samsung SDS has developed its own IoT platform, Cello. It provides basic features such as real-time tracking which uses IoT devices attached to trucks, containers, and cargos. It is also applied to various logistics processes shown in Figure 2. The platform ensures visibility of cargo locations and status, reduces inefficiency by analyzing massive data collected from the devices, and enhances operational efficiency.

Applicability of Cello IoT Platform

Big Data/AI-Based Risk Management

The concept of big data analysis was proposed earlier than one would expect. However, advancements in IoT have made it easier to collect data and analyze them in cloud environments with big data analyitcs and AI. These advancements have offered new insights that were previously unattainable.

The use of big data and AI allows us to predict risks and have more visibility that goes beyond mere tracking. By analyzing route history data, Samsung SDS has developed a route management system which tracks vessels in real-time to immediately detect when they veer off course and issue a warning in case of an expected delay.

An Example of the Application of Big Data Analysis

AI-Based Demand Forecasting

Demand Sensing is Samsung SDS’ solution that uses Brightics AI and machine learning to forecast weekly sales. When it applied the solution to its customer case, Samsung SDS looked at previous sales data and 9 different types of promotions, such as TV commercials and cashbacks, of the last 3 years of each store and analyzed how they affected sales. The solution also adopted the machine learning technology which had the engine learn 30 or some variables including holidays, weather, population, and income level, and analyze the sales patterns. As a result, the accuracy of weekly demand forecasting at each store improved by more than 25 percentage points.

Benefits of Demand Sensing

IoT/Big Data/AI-Based Customized Last Mile Delivery

Samsung SDS applies big data and AI to its delivery services for customers. It analyzes history data to determine the optimal delivery route for each order. Then it compares the route with the real-time truck positions and traffic information collected with IoT devices to adjust the route away from congested areas. These functions are implemented in mobile environments for easier access by drivers and customers. The company, in particular, continues to improve its real-time customer service with AI-based Chatbot.

AI-Based Customized Delivery

Blockchain-Based Sea Freight Forwarding

Now let us look at how blockchain will be transforming logistics services, which has been all the rage in recent years. Currently, players involved in logistics operations exchange documents one-to-one through EDI. The blockchain technology allows three or more players to share documents at once. Also, the technology makes it nearly impossible to forge or alter documents. The best option currently available is connecting EDIs so that players can exchange information regarding new transactions. The blockchain technology reduces the time required to set up a new transaction to 5% of the time required by the EDI approach, allowing players to exchange electronic documents within 1 to 5 days.

How Blockchain Transforms Logistics Environment

Conclusion

Samsung SDS’ smart logistics services are made possible by Cello, the company’s integrated logistics platform. As an enterprise end-to-end platform that supports a full range of services from SCM planning to logistics operations, Cello continues to evolve, propelled by cutting-edge technologies. And now, by leveraging Fourth Industrial Revolution technologies, Samsung SDS plans to differentiate itself from others with the following three logistics.

The first is “Connected Logistics,” which provides real-time visibility across the entire supply chain network big data-based risk management.

The second is “Trust Logistics” in which simple repetitive work is automated and reliability is enhanced with secure transaction records

The third is “Intelligent Logistics,” which derives new insights from logistics data and creates autonomous logistics environments.

With its extensitve global network of logsitics experts and LSPs at over 60 branches in around 40 countries, Samsung SDS today handles the world’s tenth largest freight volumes and provides comprehensive logistics services, serving customers in a wide range of industries.

Samsung SDS will continue to develop new businesses and services based on its techonologies, networks, and know-how and walk the path of innovation for customers.

To find out more about smart logistics of Samsung SDS, visit Cellologistics.com and download the white paper.

 

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