SEOUL, Feb. 2 (Korea Bizwire) — CJ Logistics Corp., a major South Korean logistics firm, announced on Monday the launch of the CJ Logistics Cargo Tracking system that uses artificial intelligence (AI) technology to accurately calculate the arrival time of a cargo vessel.
This system calculates vessels’ arrival time at ports by applying 18 machine learning-based prediction models plus various factors, including the vessels’ sailing information, route, GPS, sailing distance and weather.
“Previously when we checked the arrival time of cargo ships through shipping companies, the accuracy rate was only about 40 percent. After introducing this system, however, the accuracy rate more than doubled to 85 percent,” CJ Logistics said.
The company added that the new system contributes to reducing the level of safety inventory, which refers to an additional quantity of items held in inventory to prevent factories from being shut down even when cargo ships arrive later than scheduled, by 30 to 40 percent.
The reduction in the level of safety inventory leads to a reduction in logistics costs, including rent and personnel costs, while preventing the risk of overproduction.
J. S. Shin (email@example.com)