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Project

Russian Post has implemented a logistics IT system

Customers: Russian Post

Moscow; Logistics and Distribution

Contractors: GMCS
Product: Enterprise Optimizer

Project date: 2016/10  - 2017/03

Russian Post completed the introduction of a logistics information system throughout the country in the spring of 2017. The software product allows using a mathematical model to calculate and plan in advance the most effective route and method (railway, car, air, water) for sending mail to anywhere in Russia.

All 82 regional branches of the Russian Post, about 1000 sorting centers, post offices and places of international postal exchange, as well as large logistics facilities of the Post: logistics postal centers and automated sorting centers, have been combined into a single system.

If earlier the optimal routes were calculated manually by employees, which took a long time and was carried out about 1-2 times a year, then with the launch of the new system, all calculations are made by the computer in a matter of seconds. It is able to analyze about 1 billion different route options every day, choosing the most optimal ones both in terms of the timing and the cost of delivery of shipments.

The mathematical model minimizes the possibility of human error in decision-making and allows you to take into account most of the factors that affect the choice of the optimal route for the delivery of mail. In case of violations in the logistics chain, the system allows you to quickly make adjustments.

By the end of 2017, the system will be scaled up to intra-regional routes throughout Russia to improve the efficiency of planning the transfer of mail to each of the 42 thousand post offices.

"The introduction of the new system makes it possible to plan the time and cost of delivery of each mail item, choosing the most optimal routes. This allows not only to withstand the deadlines for sending, but also in some areas to deliver mail faster than the standard, as well as to identify "bottlenecks" in the production and logistics network of the enterprise and quickly eliminate them. Moreover, the system allows you to reduce logistics costs by 10-15%, which affects the overall reduction in production costs, "said Alexey Skatin, Deputy General Director of the Russian Post for Logistics
.

The system is based on IBP (Integrated Business Planning) products developed by River Logic, Inc. The mathematical model of the Russian Post is set up by one of the Russian IT service providers - [[Maykor-GMCS]. The logistics system operates on the basis of the Russian Post's own server facilities. Personal data of users is provided with a multi-level protection system.

Alexey Skatin, Deputy General Director for Logistics of the Russian Post, presented the logistics infrastructure of the Russian Post in the summer of 2016, which has its own warehouse facilities, logistics centers and the most extensive branch network - 42 thousand post offices, as well as over 17 thousand units of motor vehicles, more than 800 own railway cars and own main aircraft. Postal logistics has 22,770 auto, 594 air and 169 railway routes.

This infrastructure is available not only for participants in the remote trade market, but also for cargo owners and logistics operators. The sale of logistics services represents a new line of activity of Russian Post.

"Russian Post acts, in fact, as a logistics partner of the business. Having a unique modern logistics infrastructure in terms of coverage, we are able to offer such popular services on the market as building new routes, transportation to hard-to-reach places, cooperation in the field of international logistics. Our new capabilities allow us to effectively implement the logistics needs of domestic business, "said Alexey Skatin
.