Why It Matters
KT (NYSE: KT) and LotteOn, the e-commerce platform of the Lotte Group, have launched a partnership to apply artificial intelligence (AI) and big data to optimize logistics operations.
The move will impact LotteOn's order fulfillment process, potentially improving efficiency and reducing transportation costs.
The Key Points
- The companies are using an AI platform called LIS'FO (Logistics Intelligence Suite for Fleet Optimization), which has operated since January.
- This tool has reportedly reduced transportation distances by 22% and driving time by 11% in more than 70 Lotte Mart stores.
- In addition to LIS'FO, KT is developing a new app to enhance driver performance and convenience with features such as real-time access to optimized delivery schedules and automatic completion and arrival notifications.
- The collaboration aims to increase Lotte Mart's operational efficiency by providing real-time updates on delivery vehicle locations and completed delivery counts. In addition, this real-time tracking will help Lotte Mart adapt to changing logistics distribution needs.
- Both KT and LotteOn are committed to enhancing the LIS'FO platform and driver app to meet the industry's specific needs. They also plan to explore AI models that can learn from accumulated data to provide more sophisticated delivery services.
The Big Picture
The Head of KT's AI Mobility Business Unit notes that the AI-based LIS'FO platform is used in 1,900 vehicles at 30 logistics sites, including distribution, healthcare, and manufacturing.
This collaboration between KT and Lotteon indicates digital innovation in the logistics industry.
It is also indicative of potential future trends.
As AI and big data continue to be adopted across industries, it's expected to improve operational efficiency and reduce costs in the fast-paced e-commerce sector.