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NAVER Starts AI Logistics Experiment in Partnership with CJ Logistics

• - Collaborating with CJ Logistics, NAVER will open fulfillment centers for Smart Store sellers in Gunpo and Yongin, following Gonjiam 

• - Expects to provide advanced logistics solutions, including AI-powered forecast, logistics robots and eco-friendly packaging

• - Plans to expand the AI logistics experiment to small and medium-sized sellers after testing with big brands that manage large volumes and big data

• - Create an advanced AI logistics system that will reduce sellers’ logistics burdens

 

2021-06-20

 

NAVER announced that it has joined hands with CJ Logistics to open fulfillment centers for Smart Store sellers in Gunpo and Yongin, following Gonjiam, where it they will begin AI logistics experiments. As part of the plan, NAVER will enhance demand forecasting by using CLOVA Forecast at the newly opened fulfillment centers, while also implementing smart logistics solutions, such as logistics robots and eco-friendly packaging. NAVER will expand the new logistics experiment to small and medium-sized enterprises (SMEs) on NAVER Smart Store platform after testing with larger volume brands. 

CLOVA Forecast to enhance manpower allocation and operational efficiency at Gunpo and Yongin fulfillment centers

NAVER and CJ Logistics plan to open a 19,154m², low-temperature fulfillment center for fresh food products in Yongin in August, following the 36,364 m2, room-temperature fulfillment center that opened in Gunpo in June. The newly opened fulfillment centers have an infrastructure that will enable smart logistics system experiments using digital technologies, such as AI-powered forecasting, logistics robots and eco-friendly packaging.

 

As a part of the plan, NAVER will expand and apply CLOVA Forecast to Gunpo and Yongin centers that are currently in use at the Gonjiam center. CLOVA Forecast predicts next-day shipping volume, which helps to determine manpower allocation and enhances operational efficiency at fulfillment centers. Currently, the prediction accuracy of the CLOVA Forecast is up to 95 percent, even during event periods with wide fluctuations in order volume. Moving forward, NAVER plans to advance the technology to predict order volumes for each seller and to help establish a logistics process system based on shipping volume. In addition, NAVER will run a pilot test on unmanned moving robots to help the logistics process.

[Reference] NAVER developed CLOVA Forecast for logistics demand prediction based on its shopping data and AI technology. It can predict the order volume on NAVER Shopping a day in advance, which helps to allocate manpower based on the estimated volume. This helps to reduce the cost burden caused by excessive supply and demand of manpower and enables the efficient operation of fulfillment centers. The research paper on the CLOVA Forecast technology won the ‘Best Poster Award’ at the world’s most prestigious AI conference “NeurIPS 2020 Workshop” in December, last year.

 

Load simulation technology to prevent excessive packaging and use of recyclable paper materials to realize eco-friendly logistics

Both companies will implement eco-friendly logistics solutions. A load simulation-based technology will be used to automatically produce boxes of appropriate size based on the dimensions and bundle unit of the product ordered, and automatically calculates the optimal amount of cushioning material by measuring the empty space in the box. All packaging, such as cushioning materials, tape and pads, will be replaced with recyclable paper materials to reduce plastic use. Yongin center, which is exclusive for fresh products in cold storage or refrigeration, monitors temperatures around the logistics center throughout the year. Its “cool guardian system” maintains product freshness in storage to deliver them in the best condition. 

 

Partnership with big brands to accelerate sales, live commerce and AI logistics

NAVER expects the Al logistics experiment will help to enhance business partnership synergies with brands that manage large volumes of products and vast quantities of data. Currently, more than 320 brands use NAVER's technologies and platforms for sales and marketing, including product sales through NAVER Brand Store, special live broadcasts using commerce tools and Brand Day, which offer the maximum benefit, 24 hours a day. In the future, NAVER expects that technology- and platform-based merchant solutions will be available as it works with brands in a wide range of fields, including AI logistics, to establish various partnership strategies. NAVER plans to expand various AI logistics experiments to SME ecosystems in the future.

 

With the opening of the new fulfillment centers, NAVER will expand its “Order Today, Get Tomorrow” range of products and services already provided by the Gonjiam center.

 

“It is important to increase last-mile competitiveness in order to provide users with a satisfactory shopping experience from small SMEs to big brands,” said Pyeong-song Kim, Executive Officer of NAVER’s Business Development. “By building an advanced AI logistics system with our technology and CJ Logistics’ sophisticated system, sellers will be able to reduce their logistics-related burden and focus on their business.”

 

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