Utilization of KT Artificial Intelligence Technology
Lotte ON has partnered with KT to introduce an artificial intelligence (AI) transportation platform. [Photo by Lotte ON]
On Lotte ON announced on the 31st that it has partnered with KT to introduce an artificial intelligence (AI) transportation platform to the nationwide Lotte Mart Mall delivery service.
The AI transportation platform is a logistics optimization service that uses KT's AI technology to automatically establish optimal delivery routes and schedules. It enables product delivery via the best routes from the perspective of delivery drivers by reflecting detailed variables such as the location information of major hubs, as well as the height, length, and weight of cargo trucks. It also considers external factors such as narrow roads, U-turns, and avoidance options to enhance driving convenience and improve driving time and distance, thereby contributing to increased job satisfaction.
On Lotte ON plans to maximize logistics efficiency by introducing the service to over 70 Lotte Mart delivery zones nationwide. Since the 10th, the service has been piloted sequentially in the delivery zones of three stores?Lotte Mart Jeju Branch, Geumcheon Branch, and Chuncheon Branch?and the operation has proven efficiency by reducing delivery distance and time. The time required from delivery route optimization to dispatch confirmation decreased from an average of 30 minutes to 3 minutes, reducing operational work time by more than 90%. Driving time during delivery was also shortened by an average of 10 to 20 minutes per trip per vehicle, which allows a single vehicle to increase the number of daily deliveries by about 10%. Annually, it is expected to reduce fuel costs due to decreased delivery distances and increase sales through route optimization and increased delivery volume.
On Lotte ON has been striving to improve profitability through logistics efficiency at Lotte Mart since last year. Since last year, it has been seeking optimization plans by adjusting delivery zones and times for Lotte Mart Mall. As a result, the number of deliveries per vehicle increased by about 10% compared to the previous year, and the cost per delivery was reduced by 10%, improving efficiency.
An On Lotte ON official said, “Since last year, On Lotte ON has contributed to improving the delivery service of Lotte Mart grocery products by establishing various services to secure profitability through logistics efficiency and maintain product freshness. With the introduction of KT’s AI transportation platform this time, we expect to provide a more advanced delivery service by shortening delivery distances and times and reducing fuel costs.”
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