Itella in Russia summed up in 2017 and introduced the plans for 2018

The prominent firm-Logistik reported on 2017 and plans for 2018

During the reporting press conference on 11 April the management of Itella in Russia presented the results of its work in 2017 and plans for 2018. The event was presented by Director General Jussi Kuutsa, head of the Department of marine, intermodal and rail transport Alexey Podchufarov, commercial Department Director Dmitry Masaltsev and head of new product development Dmitry Lobanov.   

Pictured left to right:  Dmitry Lobanov, Jussi Kuutsa, Alexei and Dmitry Podchufarov Masaltsev

Revenue of the group companies Posti, Itella which includes, in 2017 amounted to €1,647 billion, which is 2.5% more than in 2016, when the figure was equal to €1,608 billion. According to Jussi Kuutsa, in 2017, the revenue of Posti have been able to stay for all business lines at the level of 2016, the increased profit of the group companies in the segments of e-commerce and cross-border trade.  

Revenues of the Express company "Maxipost", which is included in GK Itella, in 2017 has increased by more than 60%.

The revenue of Itella in Russia in the direction of air, sea and rail traffic in 2017 increased compared to the 2016 more than 40% in areas of trucking and contract logistics declined slightly.

In General, the increase of the revenue of Itella in Russia was observed in the segments of Fashion, FMCG, food, electronics, Pharma, Automotive, the decrease in segment DIY&Engineering, FMCG non-food.      

In 2017, was signed 20 new contracts at the "Contract logistics" – revenue thereon amounted to ₽250 million, the average occupancy rate of warehouse space, the company mainly for company Moscow region increased by 12%, reaching 89%, while in the other regions remained at the level of 2016. It was also concluded 85 new contracts in Transport logistics – the revenue thereon amounted to ₽550 million.

In 2017, the revenue of the logistics operator in the Moscow region grew by 0.9% in the Northern region decreased by 10.6% in Eastern region, 1% in the southern region by 12.2%.

In the direction of e-commerce warehouse, the revenue of Itella in Russia for 2017 increased by 55%. The Moscow region accounted for 66% of its volume, and 34% to other regions. For 2017, the company treated with 2 204 600 orders, more than double the level of 2016. The number of new customers appeared: the network of "Friend" and Canon, which are the largest players on the Russian market. Overall, over the past four years warehouse revenue of the operator in the direction e-commerce grew by 637%.   

Dmitry Lobanov has noted that: "the Inventory proceeds in the direction of e-commerce increases due to the increase in the number of processed customer orders, which in turn is associated with the overall growth of online trading market which is becoming increasingly more active in the regions."

Logistics operation in 2017 managed to keep the level of customer satisfaction at a high level, so the NPS has made a high of 23%. However, in 2018 the company plans to increase it further.

The investments of Itella in Russia in the client projects, IT-solutions, maintenance projects, warehouses amounted to ₽200 million According to the company, in 2018, these areas will be allocated the same amount of ₽200 million.

In 2017 Itella in Russia has optimized all the processes for management of own fleet (its size, however, is quite small – about 25 units, mostly refrigerated trucks IVECO Stralis tractors and semi-trailers Schmith). The company has implemented several management decisions that would allow to translate it into sustainable, profitable area. So, some of the cars were used on special business implying a fixed volume of traffic at a set price regardless of mileage in a month. In Moscow and St. Petersburg, the company has implemented a special scheme downloads, where cars work around the clock with minimal downtime, and not excluding holidays and weekends. In addition, the operator optimized the scheme of supply of transport on the various routes.

At the end of 2017 Itella in Russia began to implement a tracking system of KPI in the field of transport logistics. The company now monitors five indicators for road transport, allowing it to more effectively manage both its own and attracted transport.

 this year Itella in Russia will continue to develop the project for the management of its own fleet. In August-September, the company plans to undergo audit and obtain the ISO9001 certification for the transport activity.

Alex Podchufarov said: "We try to develop continuously and make every effort to ensure that our customers receive the highest level of service. Certification of transport services will not only increase the loyalty of our customers, but will allow you to build integrated solutions that will lead to further business growth".

background:

Itella in Russia and logistics provider, one of the leaders of logistic market in Russia, offering clients a full range of logistics services, including warehousing and transport and logistics services for online stores, such as fulfillment and shipping.

In the state of Itella in Russia there are about 2200 employees. The company has a warehouse space of class A area of about 400,000 m2. Warehouses and offices Itella located in all major regions of the country: Moscow, Saint-Petersburg, Rostov-on-don, Yekaterinburg, Novosibirsk, Vladivostok and Novorossiysk.

All operations of Itella meet the quality standards ISO 9001 and 14001 in respect of the carriage of goods by all modes of transport. Itella in Russia – the numerous winner of the EALA (Euro-Asian Logistic Association). Among the customers of Itella is a major international and Russian companies operating in various sectors such as consumer goods (FMCG), fashion industry, home appliances and electronics, pharmaceuticals and medical equipment, automotive industry, goods for repair and building (DIY).

.