The Stream by River Logic

Russian Postal Service Leverages River Logic to Implement the Newest Logistic IT System

June 1, 2017 | By River Logic

Russian Post recently completed the implementation of a modern logistic system throughout the country, leveraging River Logic's Planning and Prescriptive Analytics Platform. The new software uses a mathematical model to calculate and plan the most efficient route and method (railway, auto, air, water) for sending mail to anywhere in Russia.

The 82 regional branches, about 1000 sorting units, post offices and international postal exchange offices, as well as large logistics facilities of the Russian Post, are integrated into a single system: logistics postal centers and automated sorting centers.

Earlier, the optimal routes were calculated manually by the employees. This process took a long time — it was carried out about 1-2 times a year. Now, with the launch of the new system, all calculations are done by a computer in a matter of seconds. Using River Logic's Platform, they're able to analyze about 1 billion different variants of routes every day, choosing the optimal one with a glance at the terms and costs of delivery.

The mathematical model minimizes the possibility of human error in decision making and takes into account the majority of factors influencing the choice of the optimal route for the mail items delivery. In a case of failure in operations of the logistics chain, the system allows for adjustments to be made.

Until the end of the year, the system will be scaled to the intraregional routes throughout Russia to increase the effectiveness of mail transfer planning to each of the 4,200 post offices.

"The implementation of a new system makes it possible to plan the delivery time and cost of each postal item, choosing the most optimal routes. This allows us to not only meet delivery deadlines but also to deliver mail faster than the norm in some areas, as well as identify bottlenecks in the production and logistics network of the enterprise and promptly eliminate them. Moreover, the system has reduced logistic costs by 10-15%, which affects the overall decrease in production costs," said Alexey Skatin, Deputy General Director for Logistics of the Russian Post.

The system is based on the leading Planning and Prescriptive Analytics Platform, developed by River Logic, Inc, and the solution is an Integrated Business Planning Model. The mathematical model of the Russian Post is set up by MAYKOR-GMCS, one of the leading Russian providers of IT services. The new logistics system operates on the basis of its own server capacities of the Russian Post. Personal data of users are provided with a multi-level protection system, which excludes the possibility of external threats penetration.

"In Russia, IBP projects can still be counted on fingers, but the demand for such systems is growing. We are pleased that the Russian Post became a vehicle for innovations in this field. Its experience will be interesting for the global market as well. Our company provides River Logic Solution implementation services not only in Russia but also abroad, and we're excited to share our experience and expertise with the market", said Ilya Drozman, Deputy General Director, CEO for Maykor GMCS.

About Russian Post

Russian Post is the federal postal service operator and is listed as a strategic organization of the Russian Federation. It has 42,000 offices throughout the country and is deemed one of the largest companies in terms of staff, employing about 350,000 workers.

Every year Russian Post processes nearly 2.5 billion letters and bills, including 1 billion items of state agency correspondence, as well as 194 million parcels. Russian Post services about 20 million customers in Russia, delivering 1 billion printed issues per year. Russian Post processes 3.5 trillion rubles in transactions each year, including pensions, payments, and wire transfers.

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