DLx Warehouse

The Sanna-Liter group was formed in 2007 as a result of consolidation of Sanna Group and Liter Group. A strategic objective of the company is entry into the market with the offer of logistics services of a full stroke: expedition, customs services, certification, warehousing services, regional distribution and so forth. Now the company starts the project on creation of network of the logistic centers, investments into which make more than $500 million. On the first project stage of "Sanna-Liter" will create 4 large logistic complexes in Moscow, St. Petersburg, Nizhny Novgorod and Rostov-on-Don and 2 port and logistic complexes in Dmitrov of the Moscow region and Kaliningrad. Thus, the logistic network will cover the territory in which 47% of the population of Russia live. The total area of objects will be over 500 thousand sq.m. Within the created Sanna-Liter network manages all logistic transactions, providing complex services in transport and warehouse logistics: automobile, rail, sea and multimodal cargo transportation, services of safe custody in different temperature conditions warehouses of class "A", customs service and consulting.

Project Tasks

The solution of a problem of opening of network of the logistic centers "Sanna-Liter" required creation of the common information space providing unification of business processes, transparency, timeliness and accuracy of provided data.

System Selection

Having considered the offers of warehouse management systems which are available in the market, "Sanna-Liter" stopped the choice on WMS from RedPrairie company which has more than 1.3 thousand clients worldwide, including Auchan, Davigel, Exel Logistics, IKEA, John Lewis Partnership, Yves Rocher, Dailycer, O2, TNT Logistics, Panasonic, Volvo. The basic functionality of this WMS supports all basic functions of the center of distribution, such as work planning of handling stages, acceptance, placement, different methods of a complete set, shipment, inventory, task management and orders, provides broad analytic functions. The RedPrairie system is a flexible system, allows to react quickly to changes of external conditions by implementation of settings of internal business processes of a warehouse, helps to avoid inertness in updating of the current versions and expansion of functionality. The agreement on equipment of logistic complexes of Sanna-Liter network the WMS RedPrairie system of the party was signed in April, 2008, a project deadline - until the end of 2010.

Project Progress

Outsourcing implementation services of WMS RedPrairie and to ensuring complex automation of a warehouse complex for Sanna-Liter group will be provided by the Moscow company Red Tree. It is team of experts in the field of solutions for automation of logistics of the enterprises. Specialists of Red Tree cooperated with such customers as Tablogix, "Okhta Terminal", Yurinat, T-Logic, Terminal Logistics Group, Kalina concerns, Meatland, Pyaterochka, Victoria Group, "Drugstores 36.6", etc. of Red Tree ensures "PEACE" all complex of works on selection of a warehouse management system and to its subsequent implementation. At the same time the company develops recommendations about the choice of the most appropriate solution according to the existing tasks and IT strategy.

Specialists of the company implement system implementation of management of a warehouse independently, or jointly with a third-party implementation team, exercising independent supervision and control of the course and project deliverables. Also Red Tree performs integration of the WMS systems with the accounting, accounting, transport and other systems which are used at the enterprise, using as the specialized IPM systems (Integration Platform Middleware), such as SAP NetWeaver, Microsoft BizTalk Server, Boomi IP, and individually developed converters considering everything features used at the software enterprise. Before, in process and upon termination of implementation of Red Tree makes the analysis of compliance of the existing and planned business processes to the best world logistic practices and offers options of optimization of work for the purpose of increase in efficiency of functioning of a warehouse. The technique developed by specialists of the company allows to make predesign of planned targets of performance of the warehouse KPI (Key Performance Indicator) depending on requirements of each poklazhederzhatel and optimal cumulative turnover of a warehouse, and according to the results of implementation and in use - to make measurements of these indicators and to develop recommendations about their achievement.

"The Red Tree company cooperates with Sanna-Liter Group long ago. The market of 3-PL providers in Russia is rather narrow, they are pioneers and innovators in use of modern instruments of automation, and specialists of Red Tree perform consulting in the field of automation of logistics 7 years, helping to solve the companies logistic problems of any level of complexity. When "Sanna-Liter" resolved an issue of the choice of the WMS system for the whole network of logistic complexes, she addressed us. Specialists of Red Tree confirmed the choice of the customer for benefit of RedPrairie and offered the services in IT outsourcing. Implementation of WMS RedPrairie will become the first in Russia", - the marketing director of Red Tree company Svetlana Kazakova told.

The complex of class "A" of Letters of Domodedovo with a total area of 8640 sq.m which is already brought into operation located will become the first object where the product RedPrairie will be implemented, as well as it is clear from the name, around Domodedovo. The warehouse has equal bespylevy floors and is equipped with the two-level mezzanine: the first level is intended for implementation of repacking and storage of especially valuable goods, on the second office spaces are located. The brought fiber optic communications provide telephone communication and the Internet. The warehouse provides services of safe custody and also a full range of additional services among which there is a pre-sale preparation of products, marking, a complete set and others. Now the complex already services the first clients.

Within the signed agreement of Red Tree will undertake complete project management of implementation of WMS: will provide a range of services on the organizations of work of a warehouse, setup of the server hardware, the organization of warehouse zones and compartments with different temperature conditions (from -24 ° to +18 °C), preparation of warehouse infrastructure, personnel training of a warehouse, etc. The project already started. The term of putting into operation of the WMS system of RedPrairie on an object in Domodedovo is planned for July, 2008. As Svetlana Kazakova explained, at this website it is going to train more than 50 users - depending on processing complexity of clients.

Svetlana Kazakova notes that within strategic partnership of Red Tree and Sanna-Liter Group the Red Tree company will render consulting services and at other stages of the project of automation of network of warehouses: between the companies the seven-year agreement is signed.

Investments into the project

The following terminals, according to the chief executive of Sanna-Liter Group Alexey Tsatsulin, will be put into operation in the second half of 2009. Expenses on an IT component from total investment in development of warehouse network will make 2-3% of all investment volume, i.e. $10-15 million.