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Logistics

Magnit is one of the largest logistics operators in Russia. Its logistics infrastructure comprises 38 distribution centers (DСs) across the whole country with a total area of 1.7 m sq. m, as well as its own motor fleet consisting of about 4,400 vehicles. The logistics network spreads from Murmansk in the north to Vladikavkaz in the south and to Krasnoyarsk in the east. Operability of this logistics infrastructure is maintained by 34,000 employees. Magnit holds the top position in the list of importers of fruits and vegetables into the Russian Federation.

The Company’s logistics is focused on the needs of customers visiting the Family of Magnit stores and helps support the development of the multiformat retail chain and the CVP (customer value proposition). The latter includes offering customers high-quality and fresh products, interesting and unique assortment and high-level service at any convenient location at optimum costs and inventory.

Magnit pays much attention to the efficient delivery of the goods from “fresh” and “ultrafresh” assortment categories. All Magnit stores are divided into three geo-zones with different delivery algorithms. The first geo-zone includes stores located within 100 km from a DC and those located in large satellite cities. Fresh products are delivered to such stores by medium duty vehicles before 2 p.m. daily and separately from other goods. Delivery to stores from the second geo-zone — those located more than 100 km from a DC — will be performed via cross-docking platforms (compact warehouses located between a DC and a store) that allow reducing the delivery time and inventory at warehouses. Delivery of fresh products to stores from the third geo-zone — those located in the remote and northern regions of the country — as well as to the supermarkets is performed together with other goods by heavy duty trucks.

The company is actively implementing new process technologies at the distribution centers. Magnit’s DCs are introducing a pick-by-line technology and are gradually switching to the round-the-clock operating mode which allows delivering goods to stores before the rush hour. Further plans include unloading fruits and vegetables on a FIFO basis and implementing a pick-by-voice technology (voice control over warehouse operations) across all DCs of the Company. Magnit is also testing Manhattan’s up-to-date WMS system which will enable automated operation of all processes in DCs: from receipt of requests for goods acceptance to their dispatch to stores.