The advanced technologies, such as artificial intelligence (AI), big data, and robot process automation, are gradually being adopted by the logistics industry. Cutting-edge technologies designed to improve operational efficiency and productivity strengthen the capabilities of the logistics industry and are bound to become an important element for logistics companies to enhance their competitiveness.
Let's take a look at what the future of smart logistics would be like through AI systems developed and operated by CJ Logistics, ranging from a cargo tracking system that provides information about the arrival times of cargo ships through to robot process automation.
"eFLEXs" CJ Logistics' integrated e-Commerce management system
The online integrated management system “eFLEXs” simplifies user tasks by applying an automation system to all logistics processes for sellers who use Naver's Smart Store. The big advantage of eFLEXs is that it enables forecasting of demand for all orders placed using artificial intelligence (AI) and big data. By forecasting demand for each order type, such as packaging a single product, packaging together multiple products of the same type and packaging together multiple products of different types, eFLEXs has made it possible to efficiently manage the manpower that is put into CJ Logistics’ distribution centers.
In addition, eFLEXs has also reduced the system linkage time between online shopping malls and delivery service providers to one-tenth, while also enhancing convenience by adopting useful functions such as partial delivery and backorder management. Thanks to eFLEXs, CJ Logistics’ clients can now concentrate on product development, product marketing, and customer management without the trouble of logistics management using the company's advanced AI system.
Robotic Process Automation (RPA) saves time on simple repetitive tasks
CJ Logistics has introduced a robot process automation (RA) program into all of its business areas, from the running of distribution center operations to the shipment, transportation, and delivery of goods to overseas operations. The adoption of RPA, which can be seen as a software-based robot that performs simple repetitive tasks on behalf of human workers, has saved the company a whopping 5,600 hours. CJ Logistics is currently in the process of selecting further tasks from all of its business areas that will incorporate RPA, after which the company expects to save some 30,000 more hours.
AI-based optical character recognition (OCR) technology has been adopted together with RPA, and the technology recognizes the characters in documents and digitizes them into electronic documents so that they can be read by computers. Plus, if there are typos, it quickly detects them and corrects them accordingly for the computers. CJ Logistics’ electronic document system is expected to increase efficiency and reduce time in international logistics operations, which involve a lot of commercial documents, and to also dramatically reduce worker fatigue and mistakes that arise when performing simple tasks, such as data collection and entry.
CJ Logistics Cargo Tracking System tells information about arrival time of vessels
CJ Logistics' efforts are leading to the development and on-site application of advanced systems and equipment. The Cargo Tracking System, the first of its kind in South Korea’s integrated logistics industry developed and operated by CJ Logistics.
A cargo tracking system analyzes data and predicts the arrival dates and times by applying variables such as navigation information, route and weather information, the presence of GPS information on the route of the cargo ship, and the distance traveled by the cargo ship. The adoption of the CJ Logistics Cargo Tracking System has improved the accuracy of predictions from a meager 40%, which is conventional given the nature of sea transportation, to 85%.
As a result, it has become possible to reduce storage-related logistics costs, by lowering the amount of safety stock in store in case of delayed arrivals, by 30-40%, to set up manufacturing schedules for production plants and to prevent overproduction. Based on the big data that is accumulated through the operation of the system, CJ Logistics expects to further increase the accuracy of the predictions by 10 to 15% more in the future.
CJ Logistics' big-data-analysis-based intelligent logistics AI
Intelligent AI technology that utilizes big data analysis enables the provision of sophisticated and convenient logistics services anytime, anywhere based on more diversified data. With a total of 12.4 million downloads, the “CJ Logistics App” has established itself as an essential app in everyday life and provides a mobile concierge service that offers 1-on-1 customer consultations through a “chatbot,” which is a built-in AI consultation system. In addition, as the app is equipped with an AI virtual assistant function that helps delivery drivers with their work, providing them with a variety of information, such as delivery and collection status in real time and thereby increasing their work efficiency.
CJ Logistics’ AI big data analysis platform system, which is scheduled for launch by September this year, is also attracting attention. The system is designed to generate client packaging material information through ITS image analysis and also to perform demand forecasting for e-commerce clients. In addition, by building a recommendation system based on AI accident determination analysis and a delivery package loss prevention system based on intelligent video analysis, CJ Logistics plans to accelerate its DT (digital transformation) innovation as well.
As such, cutting-edge technologies representative of the 4th industrial revolution, such as AI and big data, stand out as core technologies that increase the efficiency and productivity of logistics control and are being applied to logistics processes. They collect information about the overall logistics operations and make changes to inefficient operations, thereby not only improving work efficiency but also reducing work time and costs for clients.
Please look forward to the future of CJ Logistics, which will enhance its logistics competitiveness by directly managing all processes down to making estimates and tracking cargo designed by shipping companies and airliners through the adoption of advanced AI technology, robot process automation (RPA) technology and so on.