SUPPLY CHAIN MANAGEMENT
COMPANY NEWS
2013, 25 OCT
Russian Railways Logistics: providing complex services in market stagnation
Participants of the second annual conference organized by RBK devoted to the problems of the logistics market under conditions of declining traffic volume and slow-down of global and particularly Russian economies discussed the issues on development of transportation and logistics market including freight forwarding, complex logistics and express delivery.

Russian Railways Logistics was represented by Denis Mazurin, Business Development Director, who believes in such background the players of the logistics market should focus on attracting customers by offering high quality services and developing new logistics products based on individual approach. Single forwarding services are not attractive any more, instead, the value may be added by combining different transportation modes and offering complex solutions such as supply chain management and contract logistics. The targeted audience is industrial production companies, however, there are difficulties related to the uniqueness of single production in the Russian market along with lacking of trust in outsourcing logistics services. Customers prefer first to gain positive experience with the service providers in simple transportation projects and further to switch to long-term third-party logistics.

According to Denis Mazurin, currently  RZDL provides complex services to several enterprises, e.g. this year RZD Logistics started cooperation with Guardian Industries, the largest glass producer, which plant locates in Rostov region of Russia. RZD Logistics started as a consultant and offered single services, analyzed existing logistics operations of the company and transportation costs, however, further switched to providing more complex services including raw material delivery, finished goods transportation, arranging connecting track functioning and plant site logistics. Thus, RZDL proved that logistics outsourcing in most cases is more profitable than maintaining own logistics operation as the external provider is more motivated to offer the best efficient logistics solution. The increasing number of customers demonstrated significant interest in third-party logistics and proved the success and quality of the service.

Guardian is one of the world’s largest manufacturers of float glass and fabricated glass products. The company plays a significant role in the building materials distribution business and is a major manufacturer of fiberglass insulation. Guardian is a global company with locations in more than 25 countries, on five continents. Guardian Steklo Ryazan is one of the most innovative glass plants in the world. The plant produces float glass (clear flat glass), mirror, energy-efficient ClimaGuard® and solar-control SunGuard® glass products.