Efficient logistics

Developing our logistics

Magnit is one of Russia’s largest logistics operators. Over the years, we have opened new distribution centres, improved our warehouses, added and upgraded our fleet of vehicles and built new transport routes. We continue to expand our logistics network and optimise all related processes.

In the reporting year, the Company and its partners embraced an end-to-end supply chain to streamline product shipments in a meaningful way. In the near future, this will allow us to speed up delivery and improve the inventory turnover. In addition, we will reduce distribution costs, which will make the products more accessible and attractive to customers.

40  thous. 
employees
5  thous. 
trucks
44
DCs
2 mln sq. m
of storage facilities

In the summer of 2022, we joined an initiative to test unmanned logistics corridors, the first of which will be launched in 2024 on M11 motorway. The use of unmanned vehicles will improve traffic safety and reduce driver payroll costs by 30% and fuel costs by 28% by 2025.

Digitalisation of supply chain management

We are now working to create an SCMS systemSupply Chain Management Software, an electronic platform for defining the supply chain and order processing technologies at Magnit’s DCs and retail outlets. With this tool, the Company will be able to automatically track the supply chain from the supplier to the point of sale and the goods handling technologies at DCs. The system will store a directory with information on the DC which makes shipments to a particular point of sale, and parameters on delivery options and handling technologies that have been worked out with suppliers. The system will automatically tailor the delivery chain and processing technology to these capabilities. The delivery schedules will be synchronised.

Structure of Magnit’s logistics system
DC DC Storage space Storage space, thous. sq. m Stores Number of stores Trucks Trucks
Central Federal District
14
649
8,584
Volga Federal District
10
470
7,278
Southern Federal District
8
315
4,203
Urals Federal District
4
173
2,684
Northwestern Federal District
4
152
2,427
Siberian Federal District
3
110
1,484
North Caucasian Federal District
1
40
745
Total
44
1,909
27,405
5,407