KT partners with smart logistics company to develop AI-based logistics service
SEOUL, AJU - KT, a top telecom company in South Korea, forged a strategic partnership with Mesh Korea, a smart logistics company that operates a food delivery service called VROONG, to develop and commercialize artificial intelligence-based logistics services using big data.
VROONG with a nationwide network of deliverymen provides services for restaurants and food delivery services. It also carries ordered goods from wholesale stores to restaurants. South Korea's food delivery service industry has flourished this year as many people chose to eat delivered food instead of dining out to avoid COVID-19.
KT said in a statement on Tuesday that the company has signed a cooperation agreement with Mesh Korea to strengthen logistics platforms and develop new business models using artificial intelligence (AI) and big data. KT said its AI and big data capabilities combined with Mesh Korea's logistics service would create a great synergy effect.
Technologies including AI and big data are adopted by global logistics companies to increase work efficiency and reduce costs. AI can use big data to predict and manage parcel handling systems in real time and optimize delivery routes. Such technologies can also provide transparency to the entire logistics chain and streamline delivery.
The speed of delivery has become the most important aspect in South Korea. Delivery services such as Coupang, also known as the South Korean version of Amazon, and Market Kurly, an online one-stop grocery delivery service, have gained huge popularity for their overnight delivery services of fresh food and everyday necessities.
Other logistics companies including CJ Logistics, the logistics wing of South Korea's CJ Group, have adopted AI technologies. In an effort to tackle the shortage of manpower and simplify its parcel delivery services, the Korea Post will put 5G-connected robot postmen into a test run this year. CJ Logistics provided deliverymen with an AI-based assistant solution for the easy control of parcel management.