SeverTrans Group

Pre-Deployment State (Background Information)

The logistics services market has demonstrated dynamic growth in Russia in recent times. This is especially true of the logistics outsourcing sector, including 3PL providers. The development of the Russian commercial logistics market is progressing in much the same way as the world market in general. The Moscow region still remains the focal point of the Russian territory in terms of warehouse industry investments. One of the most prominent examples of a Russian-based high-end A-grade commercial warehouse complex is the SeverTrans.

For SeverTrans, as well as any other 3PL company, the main key to success is the high level of flexibility in the warehousing technological cycle, enabling the company to handle goods with consideration of specific customer's business and product characteristics. For example, by offering the widest possible range of warehousing services combined with a universal approach to customer needs, SeverTrans establishes its main market advantage, which is defined by the company's management as its main strategic objective.

Solution

When the first warehouse of the SeverTrans cluster was being built, the company faced a number of problems that would determine the future success of the company. It was necessary to develop an optimal and efficient warehouse configuration, to choose the most suitable equipment, such as rack stackers, retrievers, and other loading equipment, and finally to select the right warehouse management system. 

"It was important to us that the system was fully adaptable to our business needs, one that would be flexible and customizable. The large number of successfully implemented projects was an additional factor, which meant that the returns on our investments were guaranteed. It turned out that there were only few providers offering such flexible solutions on the Russian market. For example, SOLVO, the leading warehousing software developer in Russia, offered a solution that ideally met our demands. The Solvo.WMS warehouse management system makes it possible to not only automate equipment, personnel operations and manage technological processes at the warehouse in real time, but to also automatically keep track of all warehouse operations for effective billing operations," said Denis Pavliuk, chief technology officer of SeverTrans. 

Another important factor that influenced our decision was whether the supplier had previous experience in working with 3PL warehouses. SOLVO specialists had extensive expertise in dealing with automation problems in the commercial warehousing field. In addition, when choosing a warehouse management system, we first considered the WMS's functionality and ability to integrate with our proprietary corporate system and other applications. "The WMS supplier that we had chosen was ready to meet the challenge of implementing an integration gateway," said Elena Golovach, SeverTrans commercial director. 

Deployment Project Details

Deployment of Solvo.WMS at the warehouse was started at the end of 2005, for which the following tasks were carried out:

• Performance specification regarding warehouse technology was prepared through a series of consultations;
• All necessary equipment such as servers, printers, stationary terminals, manager terminals, etc., was installed and connected;
• Wireless equipment was delivered and mounted;
• The following software was installed: Linux for servers, Oracle for DB servers, Solvo.WMS for application servers, and integration software for the host system;
• A system prototype was created to conduct personnel training and to test the intersystem interface;
• Documentation was prepared, such as system administrator, manager, and operator guides;
• Synchronizing of warehouse technologies and zoning of warehouse topology;
• Training and reviewing the performance of warehouse personnel.

System Deployment Phase

The deployment of Solvo.WMS was successfully completed at the first site of the SeverTrans warehousing cluster on June 15, 2006. The second phase started in February 2007 and was completed in September 2007. SOLVO products represent a combination of warehouse logistics and high-end technologies. SOLVO has accumulated extensive experience, which enables it to offer customers the most optimal solutions. This is the reason why Solvo.WMS can incorporate maximum efficiency with warehouse operations. SOLVO solutions seamlessly combine the western approach to logistics management with the knowledge of the Russian logistics market.

Results

The most notable result that can be produced by the deployment of Solvo.WMS is the comprehensive automation of technological processes, such as the tracking of all warehousing operations, the appraising of provided services and the sending of invoices to clients. As a result, all cargo handling operations at the warehouse are tracked by the warehousing system and then sent, in a consolidated form, to the customer service department. Finally, the cost of conducting customer accounting services is significantly reduced, and a high level of transparency — from the standpoint of both customers and the servicing company — is achieved. The ability to accurately keep track of warehousing operations raises the competitiveness of the entire warehouse and facilitates customer relations.

The Solvo.WMS system calculates the volume and weight parameters of customer orders, which are then used by the transport department to assign orders to specific routes and trips. For each order, a specific vehicle number and loading procedure are defined. To compile an order, the system assigns a specific loading zone for a vehicle. As a result, the time needed for loading/unloading operations is reduced substantially and, consequently, the warehouse throughput capacity increases significantly. 

Plans for Future

"Logistics along with its development is the most important course of operations for the SeverTrans Group. We are grateful to our partners at SOLVO and hope for further collaboration with them in the future," said Elena Golovach.