FM Logistic determines trends

One of the leading on the Russian logistics market – companies FM Logistic held on 29 November press conference

One of leading the Russian logistics market – companies FM Logistic held on 29 November a press-conference devoted to results of activity for the 2016/2017 financial year and the first half of the year 2017/2018 fiscal year.

From left to right Christoph Menjivar, Maria Shipovalova, Vladimir Serebryakov

At the press-conference General Director of FM Logistic in Central and Eastern Europe Christoph Minibar, speaker of the Russian division of the company – Director for business development Vladimir Serebryakov, Director of HR communications Maria Shipovalova – spoke about the work of FM Logistic in Russia.

Company LM Logistic provides its clients with a full range of services for managing the entire supply chain, including warehousing, transportation by all modes of transport, packaging and packaging customs clearance. Even such a specific area of transportation as the oversize load found its support in FM Logistic. For example, FM Logistic has brought large oil equipment in Tyumen for Total provides transportation for International Aerospace cooperation. With 1994 years, when the FM Logistic has come in Russia, the company was able to open 21 warehouse complex with total area of 600 000 m².

International activities of FM Logistic has been developing for 50 years and covers Europe, Russia, China and Brazil. Specifically in Russia's network of regional warehouses covers Saint Petersburg, Rostov-on-don, Samara, Yekaterinburg, Novosibirsk, Khabarovsk and Vladivostok and warehouses with cross-dock operations located in Nizhny Novgorod, Krasnodar, Krasnoyarsk and others.

In Rostov-on-don, the company is building on a plot of 8 hectares warehouse complex with an area of 24 900 m². The complex is located on the M4 highway near the airport "Rostov-on-don", and also.

One of the promising areas of LM Logistic sees Rostov-na-Donu: here at state support of agriculture is developing, but also manufacture and retail trade. All this creates a demand for high-quality logistics infrastructure. Therefore, FM Logistic has already purchased a plot of land with an area of 8 hectares, located near the highway M4 "don", the city's airport and industrial complex of the famous company MARS. In October 2018, will begin construction of a warehouse complex with an area of 24 900 sq. m. Now in the Rostov-na-Donu, FM Logistic operates on the warehouse has an area of 10 thousand square meters.

Among the main activities of FM Logistic are retail, food products, products 'fresh' category, consumer goods and personal care products, luxury goods and cosmetics, industrial products and electronics, medical supplies. In the previous financial year, FM Logistic's turnover amounted to 15.5 billion rubles. In the structure of turnover of 40.7 per cent accounts for customers the retail sector and 26.7 % in the manufacturers and electronics, 20.6 per cent of FMCG, 12% of cosmetics, cosmetics and health products. In the company's portfolio of services, the share of transport logistics is 29% and warehousing is 66%, co-packing and packaging – 5%. The company is the logistics partner of these manufacturers and trade networks as Auchan, X5, Leroy Merilin, L'oreal, Henkel, Phillips, Bosch, Johnson&Johnson and other.

Among FM Logistic won the project (mention only the most far-logistic) for 2016/2017 financial year includes LTL delivery Paris-Moscow and Milan-Moscow; delivery of Kazakhstan in the cheap X-dock and the country; delivery to International Aerospace cooperation.

The growth of FM Logistic in due to the first and foremost, the development of existing services. The company is expanding cooperation with existing customers, contracts with new such as Stanley Black & Decker. Actively growing makingover operations, due to the marketing strategy of the clients. So, for the first half of the current fiscal year it amounted to 30%. Developing the transport direction: as domestic flights and international. Running consolidated delivery routes Paris–Moscow and Milan–Moscow. Extended network works in a Kazakhstan. Launched local delivery in Moscow. With the development of transport directions associated with the increase in customs activity in Russia on 34% increase in the number of submitted customs declarations. The total volume of storage space available for which operates FM Logistic, increased to 761,2 thousand sq. m. Expanded existing sites in Vladivostok, Samara, St. Petersburg, Noginsk, opened two new warehouse wedge Novosibirsk. Just under the company is managing 25 platforms. In regions of the major projects for the construction of warehouses is carried out in Vladivostok for"Royal Canin" and St. Petersburg "Ashan" (here the client, for example, moved to platform Parnas in Shushary). In Elektrougli to a new client Henkel built the complex of five warehouses and etc. in Russia around the 3RD, and also the strengthening of relations with large retailers. In these projects invested 1.3 billion rubles.

The number of employees increased to 8 650. Maria Shipovalova, Director of HR communications FM Logistic in Russia in their report said the annual turnover on the level of 17% that on 5% below the average for the sector, "PWC logistics". In addition, 2016/2017 financial year in the education of employees was invested 23.8 million rubles In including 5930 people were trained on 105 courses, including 4455 workers and operators (mostly women) were mandatory and 15 35 recommended courses, and 1475 specialists and managers have passed the mandatory and 37 67 recommended courses. By the way, in Moscow region (there are 14 warehouses and in the near future there will be another) the salary of the operators (warehouse workers) exceeds the minimum wage in 3-3,5 times (up to 43 000 RUB.). Production part off 55% women and 45% men, average work experience is 4 years and annual turnover does not exceed 17% at that the market of logistics services it is 22%. The average age of professionals and working with FM Logistic is 35 years old, managers – 38 years and have top managers- 41, i.e. the staff at the company operates are Mature enough, but not older –  the peak of the qualifying activity. In the first half of FY 2017/2018 year (i.e. April–September 2017) in education employees invested 11,4 million rubles In their number 2817 employees have been trained at 70 courses in including 2171 worker and the operator passed 18 mandatory and 20 recommended courses, and 646 specialists and managers have passed the mandatory 35 and 32 of the recommended course.

In the equipment for the same period was invested 325,1 million rubles in including expanded truck fleet. By the way, Director the company's business development in Russia Vladimir Serebryakov: "FM Logistic is not makes a heavy emphasis on specific brands of rolling stock – here the main role plays the issue of costs, however, recently (just two weeks ago), the company held another session of talks with KAMAZ about the purchase of new cars series 5490. For programs city micrologistic CITYLOGIN CityLogin – part of a large complex project management of the entire supply chain from FM Logistic FM Logistic is focused in Russia on the purchase of motor vehicles on natural gas (purchased 12 LCV and HCV in including a c motors on the CNG), at this in Europe, especially in Milan FM Logistic already moved on the purchase of electric vehicles." For Russia purchased 2 units Iveco Daily, Citroen Jumper 5 units and 5 units Iveco Stralis. The capacity of machines from 1 to 14 t part of the Park allows you to travel with maintaining the temperature to – 20C°. Each of the cars equipped with engines of Euro-4 and Euro-5, and some they give the possibility to use ecological fuel – compressed natural gas methane. Class cars LCV – Iveco Daily Citroen Jumper was purchased for delivery of goods to the city centre and HCV – Iveco Stralis – for delivery retail stores in Moscow and Moscow region.

Located near the city center distribution centers and small mobile vans retailers to ensure operational and sustainable supply. The project aims to solve problems of cargo transportation in the historical centres of the cities where there are restrictions of traffic flow. The project CityLogin already running in European cities –  in Rome Madrid is popular with owners of medium and small shops.

Two light delivery truck IVECO Daily is designed for fast delivery of consignments with a large turnover in the center of Moscow. Advantage vans running on natural gas the methane in that they reduce carbon dioxide emissions and noise pollution. In the program is used cars with zero emissions of CO₂, which is 25% less than the Euro-5 standard. Feature of the project CityLogin in Russia equipment for environmental cars with additional security features for the transport of expensive goods.

Vans deliver the necessary goods in time the to 24 48 hours, including the historical part of the city centre, where there is no access for large trucks. The maximum load of these vans – 10 m³. Delivery is carried out on a daily basis to many shopping malls and boutiques of Moscow.

In addition, in the first financial half-year 2017/2018 – made construction in the Dmitrov mezzanine for ATTACKS fresh produce, in Electroslag continued equipping of a warehouse for Henkel, in Shushary also is mounting hardware for the new warehouse, and in the wedge has a new industrial client, Reckitt Benckiser. In addition, the company signed an agreement on intentions company sector Pharma and also proposed solution is full cycle e-commers (in particular, mobile cart e-Shopeur, which allows you to automate building orders online stores).

Projects at creation of automatic guided vehicle (AGV) is robotlike, which can be operated without operator control. mobility for the warehouse Manager (using the drone with a scanner for reading bar codes with the goods the upper shelves of the racks), scanners, built-in reach trucks (forklift trucks and so on.), screening device for inventory installed on the truck.

The equipment is able to work around the clock, without error, which is important in the growing volume of transactions. Also FM has introduced a solution that allows storage Manager to quickly access the necessary information to control run-off tablet. It makes the employee more mobile and increases the productivity of his work. The scanner is built into the reach truck is another technology that increases the productivity of warehouse workers. Now the operator does not need to leave the driver's seat and manually scan the product number, it automatically makes the built-in equipment. Also the trucks are equipped with a special device that allows to carry out video analysis of storage systems for warehouse fast high quality inventory.

The company focuses on creation of own warehouse complexes, and not to rent them from a third-party owners, and also focuses on them in places convenient for the entrance of vehicles.     

Forecasts for the second half of the year 2017/2018 fiscal years (i.e. up to March 2018) reflected on the chart.

Among the promising trends on the logistics market CEO of FM Logistic in Russia, Christophe Minibar identified as: Structural changes in the transport market (in particular the increasing interest in rail transport, however, limited by the significant shortage of refrigerator cars), the consolidation of the warehouse property market, reducing the number of active participants in the warehouse operations, the establishment of regional distribution centers for agricultural products. In the most important he also noted the growing trend of renting premises retailers without intermediaries.

In the framework of the existing projects were called work with IT partner, where it accounts for the development of the site, ensuring traffic and Conversion and for FM Logistic – are the call center, warehouse operations, co-packing (packaging), shipping and monitor stock levels on an international level.

More interesting future strategic projects in includes robotic solutions for unified supply chain, including AGV for fully Autonomous move the pallet from the transport gates to the place of storage. At this will ensure the creation of safe interaction between humans and robots.

Mobility for the Manager will provide while on stock tablet with the warehouse management system. In addition, it will help the drone with a special scanner, and in the more distant the future, drones may be operated automatically when using cloud technology.

A scanner for reading bar codes with the pallet is built right into the truck (implementation using the Galaxy) that allows the driver-operator not up with a working place for this operation will simplify the work and eliminate errors with the identification of products and goods.

A quick inventory when using video analysis with the device mounted on the truck. Its final scope will include, first, an inventory for small warehouses of goods of mass consumption (up to 40 000 pallets) and, secondly, the search mission check group locations in the same Mall.

Naturally great attention is paid to the deployment of telematics and a number of other IT technologies for road transport. But, in principle, FM Logistic aims to produce a revolution in processing information according to logistics, where he plans to stay in among the leaders. Naturally, that personnel are trained and developing optimizing information network within the company and its partners.

The company is expanding its presence in the e-commerce market. So, Vladimir Serebryakov, Director of business development FM Logistic in Russia, told about the development of integrated solutions for the maintenance of this direction. According to the speaker, FM Logistic in this case will act as an intelligent integrator of a large number of services, including shipping to the last mile, increase the conversion of site and store the equipment of the call center.

To optimize processes in working with electronic orders the warehouse FM Logistic in conjunction with a partner company Balea specializing in logistics solutions, has developed a cart e-Shopeur – an innovative tool, designed to make the Assembly process electronic orders easier.

 Mobile cart e-Shopeur allows you to save time and has the function of a triple control: a built-in scanner, a motion sensor, and also weighing system. With its help it is possible to carry out simultaneous Assembly 48 orders. The accuracy is provided by the weight control system integrated in each cell of the collection order. And integrated IT system guarantees the traceability of the Assembly.

Device in real time eases operator tasks. the checking of orders and the errors are detected, providing high accuracy of the process. The trolley is easy to use: the independent wheel system allows you to move it with one hand.

E-Shopeur allows you to identify the parts and location of the operator, displays the number of units build on screen, built-in the cart allows the operator to place each item in cell, illuminated indicator, verifies correct placement in the cells through a light indicator and controls the weight of each order for the account of built-in weights.

Logistics operations must be performed quickly, and this system allows to save up to 2 hours daily, affecting the efficiency of processes in General.

After a successful test use in 2016 year the decision was implemented on the platform of FM Logistic in Chateau-Thierry. In currently it is planned to launch on other platforms in France, Poland and Russia.

The creation of a single transport structure within the company has a number of advantages. Thus, the possibility of improving service is achieved through flexible regulation of the cars and drivers themselves. Full control of the technical state and location of vehicles, ensuring high accuracy, meeting delivery deadlines. FM Logistic supervises the speed of the vehicle for the security and also for the adherence to work and rest of drivers for guaranteed compliance with legislation.

"The strategic direction of our services, we see the improvement of urban delivery, where a private light-duty fleet will be demanded by customers with high demands on quality and environmentally friendly service. We plan to take the decision to increase the number of units of equipment after summing up the results of work of motor transport enterprise for the first 6 months of work" – this is the opinion of the Director of operations FM Logistic Alexander Pavlov.

In addition, prospective social projects (about them told the Director of staff communications FN Logistic Shipovalova Maria) is the establishment of a private charitable Foundation FM Logistiс (assistance to children with special needs in orphanages), participation in local environmental projects, and also support the development of the educational program of the Moscow region, which helps to form future cadres to work in the company, for example, in 16 colleges in the participation of FM Logistic was created and created the departments for logistics, for example, in Dolgoprudny. Out in the form of trained personnel, the company hopes to receive in 2-4 years. Also FM Logistic has partnered with Bauman.Bauman, with which carries out a number of joint promising IT developments in the field of transport and warehouse logistics. For example, FM Logistic took in as partner participation in the recent student competition Julita, where the competing students from various Universities.

In conclusion of the press conference, Mr. Christophe Miniver said: "the Company will complete the second half of the current fiscal year turnover of 16.5 billion rubles. The amount of warehouse space will amount to 785 thousand square meters, and the number of platforms under management of the company will increase to 26. FM plans to invest 568 million rubles in the equipment, and 23.3 million rubles, in development staff. "The Russian market is still full of opportunities for business expansion. We are focused on active development of the company, introduction of advanced technologies and solutions. In the near future, robotics, digitalisation, automation and mechanization will play a key role. Anyway, creating value for clients remains our top priority," says Christoph Minibar. He also added that: "Russia is a unique country for the rapid development of the business and its huge dimensions it is possible to arrange favorable conditions for mass start-UPS." By the way, the question of sanctions, he noted that some problems were only in the beginning, now they are successfully overcome in for the expense of changing distributors from some vendors.

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