"Reducing Transportation Distance and Time with AI: KT's Distribution Logistics Innovation"

Responsive Design Applied to LotteON Lotte Mart Mall
Customized App Packages Added
Optimized Solutions for Distribution and Logistics Sites Provided

On the 30th, KT announced that it will "partner with Lotte Group's e-commerce platform Lotte ON to apply a digital logistics solution package that utilizes artificial intelligence (AI) and big data-based algorithms to optimize transportation and improve delivery efficiency." Since January, KT has applied the AI transportation optimization platform LIS’FO to the online order delivery operations of over 70 Lotte Mart locations nationwide through Lotte ON. It was found that transportation distance was reduced by up to 22% and travel time by up to 11%.

Lotte Mart delivery driver using Lispo (Photo by KT)

This time, a customized app for delivery drivers will be additionally provided. Linked with the LIS’FO platform, it enhances the work efficiency and convenience of delivery drivers. Drivers can check optimized transportation schedules in real time and easily rearrange delivery sequences by viewing the map screen according to conditions at the delivery site. It features various AI-based convenience functions such as loading completion and automatic arrival notifications. Additionally, functions that notify delivery drivers in advance of order cancellations or changes are applied to address the challenges of highly variable distribution logistics.

Providing the app is also expected to improve overall operational efficiency from Lotte Mart’s perspective. KT and Lotte ON plan to continuously improve the LIS’FO platform and delivery driver app by reflecting field feedback. They aim to enhance Lotte ON’s logistics transportation competitiveness by offering delivery services that evolve through AI model learning.

Choi Kang-rim, Executive Director of KT AI Mobility Division, said, “LIS’FO is currently applied to over 1,900 vehicles at more than 30 logistics sites nationwide, including distribution, medical, and manufacturing sectors, creating concrete and practical digital innovation cases in the logistics market. Going forward, we will continue to create success stories from the perspectives of client companies and their employees by utilizing KT AI logistics platforms for logistics innovation.”