POSCO announced it is setting up an integrated logistics affiliate by the end of 2020. The new logistics platform, tentatively named POSCO GSP (Global Smart Platform), will leverage artificial intelligence and robot technology to service POSCO’s full supply chain.

 

POSCO GSP will integrate contracts and manage the operations of transport volumes in POSCO and its group companies. The program also plans to extend the establishment and support of sustainable infrastructure with logistics partners.

 

Through this platform, transportation contracts related to the purchase of steel materials and sales of products will be placed under a single company instead of various departments and affiliates presently managing these processes. 

 

In 2019, POSCO Group’s total transport volume of goods was about 160mn mt with logistics costs reaching KRW3tn ($2.4bn). However, the current logistics operations of POSCO are widely scattered among group companies and function as a support for sales and procurement separately instead of a fluid process. The new affiliate will reduce costs substantially and streamline these policies.

 

The affiliate will first increase efficiency by integrating logistics services such contracts of raw materials and products. Artificial intelligence and robot technology will be integrated into relevant phases as possible. In transportation, the affiliate will allow freight owners to directly bid for shipping activities and process financial transactions online. POSCO will assist partners including shipping lines to align with stricter environmental regulations. 

Leave a Reply

Your email address will not be published.