Stretching to the limit: How Sollers and Lorus move finished vehicles across Russia
By Vladislav Vorotnikov2019-10-11T11:03:00
For the Russian carmaker Sollers the importance of effective logistics hardly can be overemphasised. With a distance of up to 8,000km (4,971 miles) between its main production assets in European Russia and the Far East, a widespread network of more than 100 tier one suppliers both in and outside Russia, plus worldwide export operations, costs and lead times within the supply chain clearly make a big difference to the company.
In 2014 Sollers passed its logistics operations to the Russian 4PL logistics provider Lorus SCM.For Lorus, which is due to celebrate its five-year anniversary in 2019, this was an important milestone. The company has a diversified order book, with contracts for managing product flows for the Russian retail giants Magnit and X5 Retail Group, yet automotive logistics is considered one of the company’s top priorities. In 2018, Lorus transported 70,000 finished vehicles for Sollers and its various brands, and these flows have been seen steadily growing over the past several years.
“Being a 4PL operator, especially strong in the automotive segment, Lorus conducted a thorough research of the supply chain for the Sollers Group, detecting gaps and bottlenecks, where some improvements were possible, and urged Sollers shareholders to embark on an advanced 4PL outsourcing logistics model,” says Igor Ovsyannikov, finished vehicle logistics director at Lorus SCM.