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Samsung SDS Enhances Cello Square with AI to Mitigate Global Supply Chain Risks

Advanced AI technology reduces response time to supply chain disruptions from 24 hours to two
South Korea
s 018260.KO Mid and Small Cap 2000
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Samsung SDS Co., the IT service unit of Samsung Group, is leveraging generative artificial intelligence (AI) and machine learning to help clients address global supply chain risks more efficiently. The company announced on Monday that its upgraded digital freight forwarding service platform, Cello Square, now enables clients to reduce response times to abrupt supply chain disruptions from 24 hours to just two hours.

The enhanced Cello Square platform automatically detects potential logistics risks from over 60,000 global news stories daily using machine learning technology. Generative AI then classifies these risks into three levels of severity. Samsung SDS has developed a model that analyzes and ranks supply chain risks based on approximately 20,000 historical logistics issues. This model trains the AI to determine the impact level of each new risk.

Cello Square calculates the total logistics volume likely to be affected by these risks, enabling Samsung SDS’s logistics experts to develop data-driven countermeasures. Recently, the platform predicted potential disruptions from clashes between Israel and Iran, allowing the company to notify affected clients and provide alternative transportation options to meet shipping deadlines.

The platform’s generative AI capabilities also facilitate hyper-automation in customer and logistics management services. Customers can now obtain quotes, logistics volume, and freight cost data through simple chat interactions with the AI, which also provides predictive estimated time of arrival (ETA) information based on historical data.

Samsung SDS is committed to accelerating digital transformation in logistics to reduce uncertainties amid increasing global supply chain risks. Oh Gu-il, Vice President of Samsung SDS, emphasized the company’s dedication to using AI and digital technologies to deliver seamless and sustainable logistics services despite significant global supply chain challenges.

Current global supply chain issues include the prolonged Russia-Ukraine war, Israel’s military actions, US and European protectionism, and climate change. Samsung SDS’s Cello Square offers comprehensive digital freight forwarding services and integrates with the broader Cello logistics platform to support clients’ logistics needs.

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