Korean telecom operator offering its AI platform
South Korea’s leading telecom operator KT announced on Sept. 11 that it had teamed up with Singapore Post to test an artificial intelligence-based logistics system.
Under the agreement, the two companies will launch a pilot project for digital logistics in seven Singaporean districts based on KT’s AI platform, dubbed LISFO.
Singapore Post is poised to operate logistics centers in the country, which are designed to cover hundreds of customers to ensure timely cargo delivery to them.
KT will offer AI solutions, which will come up with optimal delivery routes based on real-time information, including traffic congestion and vehicle schedules.
The two corporations expect that the new system will cut down on the road mileage necessary for delivery by up to 27 percent and the number of vehicles driven by 15%.
The stiff competition in the e-commerce industry prompted Singapore Post to test the AI system, while KT vies to tap into the global markets based on success in the Southeast Asian city-state.
“In consideration of the maturity of the Singaporean online retail market, the country’s logistics market is challenging. But it also offers opportunities to test the competitiveness of our digital transformation capabilities,” Choi Kang-lim, chief of KT’s mobility division, said.
Singapore Post Vice President Eric Yeo expressed his hope that the collaboration would bring about new possibilities.
According to market consultancy Precedence Research, the world’s logistics market size amounted to $7.98 trillion in 2022. It is expected to top $18 trillion by 2030 thanks to the flourishing online retail business.
“One of the key factors positively influencing the market is the booming e-commerce industry, as well as the improving availability of high-speed network connectivity,” the institute said.
“The need for effective logistics services is rising as the e-commerce industry grows. Furthermore, the market is being driven by a shift in customer preference toward online purchases.”