The Covid-19 pandemic has created some challenges in supply chains and introduced changes in customer needs that traders need to anticipate as they prepare for the Christmas trade season. Kesko Senukai Digital, the company that manages the Senukai and 1A online stores, has opened a new logistics center in Latvia, in the Rumbula logistics park, which will allow faster delivery of goods purchased online to customers in Latvia, Lithuania and Estonia.
Traders are already working on the new reality dictated by the Covid-19 pandemic. Kesko Senukai Digital has accelerated the ordering of goods from importing countries, as well as invested in in-house logistics solutions, so that online purchases can reach its customers without interruption.
“The pandemic has not only increased the demand for online marketing, but also changed customer expectations. Nowadays, every minute is important for customers when ordering a purchase online. That is why we have opened a new logistics center in Latvia for market services in the Baltic States and invested in solutions that will allow more intensive organization of purchase assembly and delivery to parcel delivery services, ”says Ķestutis Statulevičs, Logistics Manager at Kesko Senukai Digital.
The new logistics center operates at a higher capacity and is able to process almost twice as many orders as before, as a result of which the delivery of purchases to customers in all Baltic countries will be accelerated. In addition, customers of the online stores “Senukai” and “1A” will be able to receive the goods directly from the warehouse.
The range of goods is also expanding
The location of the new logistics center in Latvia has been chosen because it is geographically convenient to serve all three Baltic States. The warehouse of 5,700 square meters is leased in the Riga logistics park “Rumbula”.
“We have set the expansion of the assortment as a high priority, and currently we can store about 50,000 different names of goods. The new warehouse has twice the storage space and even five times more shelf space than we have used so far. This allows us to store a wider assortment of goods and accumulate enough reserves so that buyers do not run out of anything, ”notes Ķ. Statulevich.
The logistics center will store and assemble not only materials necessary for construction or repair, but also household appliances, furniture, finishing materials, electronics and other goods that can be purchased in the online stores “K-Senukai.lv”, “1A.lv”, “Senukai. lt ”,“ 1A.lt ”,“ K-Rauta.ee ”and“ 1A.ee ”.
Purchase order model changed
Given the ever-changing situation, it is important for Kesko Senukai Digital to react quickly to decisions made by regulatory authorities and, if necessary, be prepared to involve additional human, logistical and technological resources to ensure safe, fast and convenient shopping and receipt of goods. Therefore, the new logistics center “Kesko Senukai Digital” is also changing its order picking model.
“So far, we have hired external suppliers to perform order picking services, but after several unsuccessful choices, we decided to take over these operations. Such a solution will allow us to react faster to unforeseen circumstances, not to depend on the resources and working principles of third parties, and – most importantly – to provide customers with a complete and efficient supply chain, ”emphasizes the logistics manager.
In order to reduce the number of overdue orders, the move to the new warehouse took only a few months. During this period, the team of people working in the new warehouse has been formed practically “from scratch”.
Ķ. Statulevich does not hide that the competition for the employees of the logistics center is very fierce. The new 24-hour warehouse in Latvia currently employs around 100 people. As the biggest holiday of the year approaches, it is planned to temporarily hire additional employees.
“Consumer needs and the market are moving towards shorter and more specific delivery times, so we are also looking for automation solutions that would allow us to prepare orders as quickly and in as large a volume as possible,” Kesko Senukai Digital’s logistics expert outlines future plans.
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