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Krupskaya factory belongs to dynamic, rapidly developing companies of the modern confectionary market. Practice shows that correctly constructed logistics is one of the most important business processes component.
New turn in Logistics policy organization company started in January 2009, when Krupskaya confectionary became the first renter in the warehousing complex of A class at «AKM Logistics» in Shushary. The company has rented warehousing and office premises with the total area of 6 300 square meters for the period of 7 years. International consulting company Knight Frank, that was also developing the concept of this complex, performed as the consultant of the deal.
«By the end of the first half a year we may announce that competent factory capacities development led to several big deals and corresponding increasing of presented assortment. Cooperation agreement with „Azart“ allowed us to expand our portfolio and we hope that starting with July 1, 2009, as it was announced earlier we will sign another important distributor? s contract with „Pekar“. This will make it possible to expand brands potfolio, to develop our presence geography and to ensure our leadership positions» — says Philip Wegh, General Directory of Krupskaya factory.
New warehousing premises will be located in the already known warehousing complex «AKM Logistics» in Shushary. In comparison with the beginning of the year the total size of the warehouse rented will be increased two times and will make over 12 000 square meters. The period for rent agreement remains the same — 7 years. At present moment racks installation on expanded territory is started, office premises refinement is finished and starting with July 1, 2009 we will be ready to receive and locate products at the expended territory.
One of the most important functions that usually lays as the foundation for any modern ready products warehouse management system is its quality control, that is why possibility of installation of necessary equipment for warehouse conditioning, that is needed to create microclimate for confectionary (chocolate) products storage was one of the main requirement on behalf of the factory management towards rented warehousing premises. Moreover, complex is equipped with the additional porch for medium and low tonnage transport vehicles, and that will allow us to speed up the process of shipping, thus increasing the number of the clients we can serve.
High-tech ready products warehouse is the most important logistic link in the supply chain that organically unites production with the enterprise distribution. One of important conditions for modern warehouse operation in the environment when manufacturing of hundreds of products with the limited shelf life is required is its capability to provide quickness of searching the products and accuracy in assortment selection. To ensure this capability there was taken a decision on WMS system installation with strokes coding that will allow to save costs by means of warehousing operations rapid execution.
Existence of successful logistics allows factory to ensure its leadership not only in the North-West region but in the other regions of the country. Confectionary market is constantly changing and Krupskaya factory is changing together with it. What remains stable is the quality of our products and careful attention towards our customers.
About Krupskaya Factory
Confectionary factory named after N. K. Krupskaya, that was found in 1938, today is one of the leading confectionary enterprise in Russia specialized in chocolate products production. Krupskaya has over 280 SKUs which are represented by natural chocolate tablets, chocolate bars, loose chocolate sweets, chocolates in boxes and chocolate semi products for food industry. The company is market share leader in the North-West region of Russia and Number 2 player in chocolate bars. In 2006 Krupskaya was acquired by the Norwegian company Orkla, which is one of the largest listed companies in Norway. Orkla is a leading supplier of branded consumer goods to the Nordic market, and with strong local positions in Russia, India and parts of Central and Eastern Europe. Krupskaya employs — 900 persons.
Krupskaya Factory posted 2008 operating revenues of 2,433 million rubles (USD 96,4 million). Krupskaya sales in 2008 showed +30% growth over 2007
About AKM
AKM Logistics LLC is the joint project of Venture Investments & Yield Management LLP (VIYM) and Raven Russia Limited.
«АКМ Logistics» complex is located on the first line of «Russia» federal route, through which over 50% of product flow of Saint-Petersburg passes by. Good transport accessibility of the complex is provided by its closeness to the Eastern half-ring of the ring road, railway station Shushary, Pulkovo airport. Construction of «АКМ Logistics» is implemented in 3 stages. Project is financed by equity and borrowed funds. Total area of warehousing premises is 195 thousand square meters. Company is planning to fully accomplish the construction of the complex by the first quarter of 2011.
«Business decline, caused by the crisis in the world finance market had an effect on the domestic logistics business development, many projects on companies development are stopped, — says Peter Gavyrin, general director of „АКМ Logistics“. — In the conditions of limited attraction of borrowed funds the considerable advantage of „АКМ Logistics“ project is the fact, that it is fully supported by financing. At present moment company has started the project of the second and the third complex stages. In spite of the complicated situation at financial market we evaluated future potential of logistics market rather high».
For further comments, please contact:
Olga Agafonova, Krupskaya External Relations Manager
+7-911-925-2663
St. Petersburg 22 June 2009
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