Magnit to Monitor Delivery of Fresh Products Online

In the lead-up to the summer season, the Company equipped all 38 of its distribution centers with a remote temperature monitoring system and implemented sensors to keep track of the conditions during delivery to the store. This will enable the Chain to control product freshness and increase the quality of deliveries for the customers. The solution is expected to bring the level of shrinkage down by up to 10%, subject to compliance with other required parameters, and help increase the lifetime of the products.

Krasnodar, May 19 2020: Magnit continues to implement measures aimed at increasing the efficiency of its supply chain. One of the key projects here involves establishing a three-stage process to control temperature during distribution. Around 40% of products in the Chain’s assortment—vegetables, fruits, meat, dairy, and others—require maintaining special temperature conditions. Currently, the level of compliance with the temperature requirements is at 96% for the logistics centers, and 95% for the vehicle fleet. In the future, Magnit plans to bring these figures up to 100%.

The Chain equipped the storage rooms and truck loading areas of its distribution centers (DCs) with temperature sensors designed by a Russian company to Magnit’s specifications. These sensors continuously measure the storage temperature and immediately report any deviations to those responsible via email and mobile phone. The Company also installed this new equipment inside its refrigerated trucks. After the products are loaded into the truck, additional sensors are placed directly inside the transport packaging, which allows monitoring not only the overall temperature in the truck, but also the state of each individual carton on its way to the customer. This is done to investigate whether a certain type of thermal packaging is capable of maintaining the highest possible quality of goods or should be replaced. Following the delivery of products to the store, the sensors are returned to the DC, where their readings are analyzed and an appropriate decision is made.

The remote temperature monitoring system will operate in Magnit’s DCs on a constant basis.

«We’re working on increasing availability and freshness of goods on our shelves and would like our customers to be totally satisfied with the quality of our products to entice them to visit our stores again and again. At the same time, we try to optimize internal logistics processes by making deliveries more efficient and using various technological solutions. The remote temperature monitoring system will be synced up with other projects that are currently being implemented across the Company, like warehouse and transportation management systems and others. This will enable us to respond to customer-related challenges with maximum possible effect and create the best offering for the consumer», — noted Marya Dey, Member of the Management Board and Supply Chain Director at Magnit Retail Chain.