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Progressive logistics technologies for Moscow

«Logistics management» took part in the representative logistics forum that was organized by the Moscow Government (Department of consumer market and services). The questions of development of the wholesale, warehouse estate and logistics services were discussed at the conference «Problems and ways of implementing the progressive technologies of distribution and supply chain optimization in the wholesale» in the Central house of entrepreneur.

The participants of the conference were: managers of the industrial departments in the Moscow Government, the largest Russian and international trading operators, leaders in the field of construction and management of warehouse estate, representatives of the largest logistics companies and leading developers of IT-solutions, banking and investment-industrial groups.

The minister of the Moscow Government, head of the Department of consumer market and services, Vladimir Malyshkov, spoke on the core directions of the non-food wholesale optimization for 2006-2010. According to him, the distinguishing feature of the consumer market development is the high growth dynamics and significant quality changes. «Moscow is one of few Russian regions, where the prosperity grew 2.2 times, which is the additional opportunity to buy goods», he noted.

2005 is going to be the record year in terms of turnover - 1 trilion 600 bilion roubles, which is «almost 26% of the total Russia turnover». The growth dynamics of the retail turnover leads to the increase in physical volumes of goods that go to the market, to spreading and complicating of the goods assortment and nomenclature.

«In this conditions the questions of  effective supply system, effecient supply chain from a producer to a store, as well as the the stable goods exchange between regions acquire great importance», Malyshkov outlined.

Moreover, according to the head of the deparment, 52% of the whole import go to Moscow: it is good from the one hand, but from the other, it leads to the highest loading, which is difficult to manage without sufficient warehouse facilities. In order to solve this problem 1.5 m sq. meters of such premises are planned to be constructed in Moscow by 2010, but it is still inadequate, he says, as 5 m sq. meters of technically equipped premises are needed to ensure the high quality of storing.

The head of the Moscow Food resources Department, Alexander Baburin, reported on the state and development of the food wholesale in Moscow. According to him, 28 thousand tons of food is being consumed daily in Moscow, and 10 m tons annually. It is expected, that the turnover in 2005 will total 9.6 m tons, which is 6% more than in the last year. The city has 40% of the Russian food wholesale.

A. Baburin outlined that the total area of the warehouse premises in the system of the wholesale exceeds 2 m sq. meters, the number of operators in the food wholesale (together with small businesses) accounts to 2.5 thousand. Today the wholesale supports the activity of 470 large, medium and small entities in the food and manufacturing businesses, Baburin outlined.

He also told that department with the help of the Moscow Government implemented the informational-analytical system «Distribution monitoring», which allows to get the information about the supply, sales and stock of food on-line, as well as estimate and forecast the volumes of the goods resources, coordinate business projects along the supply chain.

The partner of the Knight Frank, Roman Burtsev, in his report shared the opinion that Moscow is now at the edge of logistics boom. The distribution in Moscow and the region, as well as in Russia as a whole, reached huge scale and the city will not manage all these goods flows coming in. «Moscow authorities has paid attention to the issue in the right time, and now they need some help from the professionals of the market. It is obvious, that it will be impossible to optimize supply chains without professional approach to the matter», Burtsev outlined. It is necessary to define the «weak points» of the logistics market development and the further plans of the joint activities - develpment of the warehouse terminals might become the basis of the solution, he explained.

The participants showed the keen interest to the report of Andrey Khlous, the managing partner of the Logistics Field Audit. Andrey Khlous outlined the necessity of the logistics audit of the existing freight flows, estimating of the efficient supply chain criteria for the present situation on the market and for its development. The report showed the modern trends of the supply chain management, as well as the factors that influence the  advisability of implementation of this methods into practice. When answering the questions of the audience, Andrey Khlous outlined that the market leaders already implement the modern logistics technologies to ensure the competetiveness and stability of the business on conditions of its further development.

The questions of supply chain optimization by the means of ECR methodology and IT implementation were also discussed during the conference.

The materials used

Aliance Media

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