Global News FreightWaves The future of logistics is digitization in a comprehensive framework

Samsung SDS’ Cello Square helps shippers maintain end-to-end visibility of logistics operations The logistics industry is incredibly complex, involving multiple stakeholders ranging from transport providers to customs authorities.

Managing regulations, rapidly shifting markets and collaborations with a host of organizations from various sectors requires logistics companies to grapple with immense amounts of data.

IT technologies are indispensable for logistics companies to be able to effectively leverage the data generated along the supply chain, and few companies understand the implementation of IT platforms like Samsung SDS does.

Kooil O, executive vice president of Samsung SDS, says there is a considerable gap between what customers expect and the current state of IT adoption within the traditional logistics sector.

“Legacy logistics providers frequently grapple with slow and convoluted decision-making processes, hindering their ability to adapt to the rapidly changing digital landscape,” O said.

Samsung SDS foresaw that digital logistics providers equipped with cutting-edge capabilities such as real-time quoting, digital-based cargo reservation, seamless data integration, sophisticated analytics and streamlined workflow automation would be best positioned to succeed in this fiercely competitive environment.

“Capitalizing on our unrivaled IT expertise, it was an organic step for us to harness this burgeoning potential,” O said. “Over time, we’ve honed our logistics operations by leveraging invaluable feedback from our diverse international clientele.”

To meet the needs of an evolving market, Samsung SDS developed the end-to-end global logistics platform Cello Square.

“Cello Square allows us to manage logistics processes, from strategic supply chain planning to efficient import and export execution,” O said. “This enables us to deliver seamless, cost-effective and reliable logistics services to our valued customers.”

Traditional logistics companies may struggle with disjointed systems acquired through mergers and acquisitions. Many platforms lack a control tower that encompasses the entire logistics system.

While recent efforts to enhance operational efficiency through the implementation of external solutions or the creation of a customer portal are commendable, certain limitations persist, such as the need for dual system usage. Additionally, the adoption of external systems has at times proved challenging due to their inability to fully accommodate customer requirements.

However, Samsung SDS has taken a different approach by internally developing and globally unifying Cello.

“Cello Square provides a comprehensive framework for logistics digitization across all areas,” O said. “In developing Cello Square, we achieved efficiency of logistics execution based on digital technology such as warehouse management, transportation management, import and export management as well as efficient logistics management to prevent bottlenecks in each area.”

Cello Square’s customer portal offers numerous features that customers can directly access and benefit from, including the ability to check freight rates for key transport routes, insights into the logistics market, current port congestion statuses and efficient cargo loading solutions.

However, according to O, Cello Square’s most significant value proposition lies in its capacity to facilitate data-driven supply chain operations and decision-making processes.

While shippers typically outsource their logistics processes to 3PLs, issues arise when either party lacks adequate systems and processes or invests insufficiently in data integration tools.

“This hinders the accumulation of valuable data from logistics operations, limiting the ability of shippers to make informed, data-driven decisions based on system-supported global logistics operations,” O said.

Through the implementation of a data-centric operational framework, Cello Square aims to expand its customer base to include those shippers that recognize the value of data visibility.

“Customers can generate orders both through operators and independently within Cello Square itself,” O said. “All outcomes resulting from global operations based on these generated orders are recorded in Cello Square, with the accumulated data automatically analyzed and presented via a user-friendly dashboard for critical logistics decision-making purposes.”

In light of the disruptions caused by COVID-19, O says, it has become increasingly critical to make informed decisions based on real-time data about changing logistics flows and maintain end-to-end visibility of logistics operations.

“With Cello Square, users can quickly access a wide range of logistics information and solutions, while loaded data is automatically analyzed to support decision-making in logistics operations,” O said.

“As global risks continue to evolve and customer demands for digital transformation grow stronger, our focus remains on delivering seamless logistics services even amidst major shifts in the global supply chain,” O said. “Simply speaking, our key goal is improving data-driven agility to respond to supply chain risks. Utilizing the latest IT technologies and artificial intelligence, we are committed to helping our clients navigate these challenges and thrive in an ever-changing landscape.”

Through Cello Square, Samsung SDS endeavors to expand its logistics services to promising sectors such as biotechnology, pharmaceuticals and renewable energy, while maintaining its commitment to established industries like high-tech and automotive components.

“Our overarching goal is to deliver transformative logistics solutions that enable our clients to prosper in today’s dynamic global marketplace,” O said.

Samsung SDS aims to digitize warehouse management, fulfillment and local transportation services beyond traditional forwarding capabilities.

“We firmly believe that the digitization of the entire supply chain will enhance data visibility, and we assure you that Samsung SDS will not undertake this endeavor alone,” O said. “We will collaborate closely with various external partners.”

Cello Square boasts an impressive network of 56 branches in 36 countries worldwide including the U.S., Mexico and Brazil in the Americas; China, Vietnam and Singapore in Southeast Asia; India and United Arab Emirates in MEIA; and Netherlands, Germany, Hungary and Poland in the EU.

“It is our sincere hope to connect with diverse clients from the United States and around the globe,” O said.