Samsung SDS Co., a logistics and information technology solutions unit of South Korea’s largest conglomerate Samsung Group, will expand its logistics business by actively embracing artificial intelligence (AI) and blockchain technologies.

At a press conference on Thursday, Samsung SDS revealed a plan to add an intelligent artificial (AI)-backed logistics platform in which its partnering companies and clients can participate to help overall logistics ecosystem expand. As part of the project, the company will upgrade its smart logistics platform dubbed Cello that is helping the company rapidly shift into a platform-centered service provider.

Samsung SDS jumped into the logistics business in 2012 by launching Cello, an end-to-end logistics solution that handles the process from securing raw materials to warehouse transfers and management to personal customer delivery.

It had handled only orders from its sister company Samsung Electronics Co. until the first half of 2015. But over the last two years, it has successfully made inroads into 40 different countries by expanding its client base. Samsung Electronics currently makes up about 85 percent of Samsung SDS’s logistics orders while other Samsung affiliates 5 percent and non-Samsung customers combined 10 percent. Samsung SDS hopes to expand orders to external customers by providing smart service.

It raised 4.2 trillion won in sales last year. This year Samsung SDS is expected to handle 490,000 tons of air cargo and 1 million units of twenty-foot equivalent ship cargo, large enough to allow it to join the world’s top 10 logistics company club.

Samsung SDS’ logistics business centers on Cello platform. The smart platform is divided into Cello business process outsourcing (BPO), Cello Plus smart logistics solution, and Cello Square that is dedicated to small- and mid-sized companies and electronic commerce enterprises. Samsung SDS launched a trial version of Cello Square this month and plans to offer its official service in June.

Over recent years, Samsung SDS has been expanding its smart logistics business by applying AI and blockchain technologies to its Cello platform. For the last one and a half year, the company has applied its smart delivery center that manages inventory by projecting sales volume based on AI technology to 428 electronics retailers in Germany and 53 in Austria. Samsung SDS also plans to develop blockchain technology-based system that can be used in identifying the country of origin and in trade finance service.

By Lee Dong-in and Lee Eun-joo

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