KT eyes Southeast Asian markets with AI-driven logistics solutions

KT staffs at the Mobile World Congress in Barcelona [Photo provided by KT]

Korean telecommunications carrier KT Corp. will partner with a Singaporean telecommunications company to launch its artificial intelligence-based logistics solutions.

The Korean wireless carrier will first commercialize its AI-driven logistics solutions in Singapore from September, using geographic information systems and IT solutions that Singapore Telecommunications Ltd. has built.

“We have test-run our solutions to optimize local Singaporean logistics services before commercialization,” KT’s AI mobility business leader Choi Kang-rim said. “The results show that miles driven was cut by 27 percent, driving hours by 24 percent and the number of vehicles operated by 15 percent.”

KT’s solution, called the “Logistics Intelligence Suite for Freight Optimization,” provides best routes for logistics real-time based on its AI technologies. The telecommunications company plans to run the solution in local logistics operations starting this month in the Southeast Asian country, with built-in confidence in the data so far.

“In countries like the U.S. and Canada, where cargo trucks travel long distances, optimization may not be as necessary,” Choi said. “In countries like Korea and Southeast Asian countries, traffic data, including traffic congestion and driving hours, brings quite a difference in terms of efficiency.”

During the Mobile World Congress in Barcelona, KT also shared its other logistics solutions, including the logistics center optimizing solution “Logistics Intelligence Suite for Center Optimization” and the real-time consignor-driver matching service “Brokarry.”

“We’ve applied our optimization solutions to KT’s own logistics service that delivers set-top units,” Choi said. “We tested about 10 million cases a year and saw up to 25 percent cut in vehicles in operation, which gave us some confidence.”

The telecoms company’s logistics solutions are now being used by 25 companies, including Lotte Shopping Co.’s Lotte On, GS Retail Co., Homeplus Co., Coupang Corp. and Hite Jinro. The number of vehicles managed per day is around 1,300 on average. KT’s logistics business brought in 7.5 billion won last year, and the company expects that figure to double this year.

“In Korea, there’s a limited number of cargo trucks of up to 400,000, but logistics markets are constantly growing and could lead to an imbalance in demand and supply,” Choi said. “If the delivery process is optimized, drivers may benefit by being able to handle more deliveries, thanks to better efficiency.”

KT plans to expand its logistics business to overall logistics management, including robots working in logistics centers. “Our goal is to have a pleasant work environment with sufficient compensation in the logistics industry.”