[Exclusive] Predicting CJ Logistics Order Volume with Naver AI... Alliance Intensifies

[Asia Economy Reporter Bu Aeri] Naver has embarked on logistics and delivery innovation using artificial intelligence (AI) in collaboration with CJ Logistics. As Coupang has risen as a strong player in the e-commerce industry with its well-received 'Rocket Delivery,' Naver is also launching a counterattack by leveraging its IT capabilities.

According to Naver on the 24th, it has independently developed an AI called 'Clova Forecast' that predicts logistics demand and is currently being pilot-applied at CJ Logistics' largest logistics center, the 'Gonjiam e-Fulfillment Center.' This is the first publicly disclosed achievement since Naver and CJ Logistics formed a strategic alliance last October through mutual equity swaps. The two companies plan to create a triangular synergy of logistics-AI-shopping based on Naver Clova's AI technology, Naver Shopping data, and CJ Logistics' logistics infrastructure.

The newly applied Clova Forecast by Naver is an AI model that predicts the order volume on Naver Shopping for specific sellers one day in advance. The forecasted values calculated by Clova Forecast are used by CJ Logistics to optimize workforce allocation at logistics centers. By checking the next day's order forecast, appropriate personnel are secured and deployed in advance accordingly. Utilizing AI enables workforce management and accurate handling of order volumes. The AI's predictions help avoid situations of excessive labor costs or labor shortages.

The prediction accuracy of Naver Forecast reaches about 95% even in situations with large fluctuations in order volume. A Naver official explained, "By leveraging Naver's vast shopping data and AI capabilities, we have reduced prediction errors by compensating for data biases present in existing demand forecasting models such as those of Amazon and Facebook."

Naver plans to turn its previously identified weakness in logistics systems into a strength through technological cooperation with CJ Logistics. Although Naver Shopping (27 trillion KRW) surpasses Coupang (22 trillion KRW) in transaction volume and ranks first in the industry, the lack of its own logistics and delivery network has been considered its biggest weakness in a market where 'fast delivery' is a core competitive advantage. Coupang has grown by boasting over 100 logistics centers and fast delivery services like 'Rocket Delivery.' In response, Naver initiated cooperation by exchanging shares with CJ Logistics last October. Naver holds a 7.85% stake in CJ Logistics, while CJ Logistics owns 0.64% of Naver shares.

Naver is also pursuing 'fast delivery' with CJ Logistics. Naver aims to realize 'same-day order, next-day delivery' for all stores using its fulfillment (logistics outsourcing) service. The introduction of Clova Forecast has made it possible to achieve this more reliably. Naver plans to gradually expand the stores to which Clova Forecast is applied.

A Naver representative stated, "By combining CJ Logistics' top-tier infrastructure in the logistics field with Naver's AI technology, we expect to enhance the shopping satisfaction of Naver Shopping users," adding, "We will continue to advance technology development with CJ Logistics and cooperate for logistics innovation."