Shinsegae Duty Free said on the 20th that it will work with LG Electronics' smart factory to build an AI-based logistics system and advance its duty-free pickup service.
On the 18th, Shinsegae Duty Free worked with LG Electronics to diagnose and consult on overall logistics operations and reviewed ways to build an optimal logistics system that reflects the characteristics of duty-free logistics. By applying LG Electronics' smart factory capabilities to the logistics center, the company plans to gradually build intelligent and automated solutions across the entire process—from order to receiving, storage, inspection, picking, and shipping.
Unlike general retail, the duty-free industry has a structure in which customers purchase products multiple times starting months before departure and the items must be handed over at the pickup counter timed to the departure, making logistics operations complex and requiring meticulous management. In response, Shinsegae Duty Free is pushing to advance its logistics system so customers can receive products at the pickup counter more quickly and accurately.
The future logistics system will include logistics center design that reflects the characteristics of duty-free logistics and future growth demand, integrated logistics operation optimization linked with AI-based real-time order and on-site data, and high-speed, flexible automation equipment using mobile robots.
Shinsegae Duty Free also aims to build a control system based on a Digital Twin that integrates real-time management of equipment and work status to manage both preemptive detection of out-of-stocks and equipment conditions. In addition, it plans to strengthen safety management functions using AI video technology.
Kim Hyun-cheol, head of sales and marketing at Shinsegae DF, said, "Because duty-free shopping is tied to customers' departure schedules, accuracy and speed in logistics operations are more important than anything else," adding, "Through this collaboration, we expect to significantly enhance customer convenience and service competitiveness and create a new turning point in duty-free logistics operations."