Ozon is one of the largest Russian e-commerce sites, which presents more than 4.5 million trade names in 24 categories, from books and clothes to food and health products. Every day, the company processes about 150,000 orders, more than 90% of which are delivered exactly at the time interval chosen by the customer. At present OZON has 1.5 million unique users per day and a loyal user base of over 30,000,000 people.
The cooperation of ICL Services and Ozon began in 2017, six months after the opening of the first warehouse complex of the online store in the Povolzhsky Federal District. ICL Services specialists helped to improve the video surveillance system, reduce staff costs and simplify the work of the security service.
ICL Services engineers also install and maintain Ozon automatic parcel terminals in 30 cities of Russia.
The Ozon logistics complex in the village of Stolbishche (Tatarstan) is a three-story metal mezzanine inside the warehouse complex. On each floor of the complex there are 20-25 rows of shelves.
The customer needed a system that would reduce thefts, be able to confirm them and provide observation at the places of pre-packing, packaging and storage. Other requirements included the integration of video surveillance with security and fire-fighting systems and an access control system. Thus, the security service could generate reports on the operation of alarms and sensors and manage the system in a single interface.
The customer contacted ICL Services to evaluate the previous contractor’s calculations. After that, an estimate was prepared for design, construction and installation works, equipment and commissioning. ICL Services specialists managed to reduce the total cost of the project, and the company executed a service agreement.
Key Challenges
- Reduce security workload
- Install commercial equipment in 14 cities
- After the design and survey work, ICL Services engineers helped the company select equipment and determine the camera layout. Later, the design of the IT system and the installation of a video surveillance system began, as well as the integration of a fire alarm with a separate VideoNet software package. It helps the security service analyse records, install line crossing detectors and abandoned object detectors, and transmit a signal on incidents.
In February 2018, ICL Services specialists underwent training at the customer’s office in Moscow and began installing, configuring, and servicing Ozon automatic parcel terminals in several Russian cities.
ICL Services engineers are also responsible for logistics: they pick up the automatic parcel terminals from the customer’s warehouse, check their integrity after delivery, and document damage if necessary. Then they install equipment, mount security systems, and connect service and user cells.
After installation and configuration, the engineers check the communication channels, adjust the camera angle, test the device for cells opening and take photos of the terminal from all sides to confirm that it was installed in the very place where the customer planned.
If the terminal doesn’t fit into the planned site, the engineers propose a new location and coordinate it with the customer.
After delivery, installation, wiring and configuration, ICL Services engineers maintain the terminals, carrying out scheduled maintenance, changing parts and eliminating problems. When the connection with a terminal is lost, the monitors do not work, the barcodes are not scanned or the power is off, the engineers go to the place upon the customers request. In each city there is at least one engineer who serves the terminals.
“Ozon would need a large staff to carry out this scope of works. Engineers would have to know how to maintain the network, computers, equipment, maintain and service the parcel terminals. In addition, it’s unprofitable to have full-time engineers throughout Russia,”said Nikolai Zolotsev, head of the ICL Services field support team.
An on-site engineer assesses the situation and, if possible, solves the problem, restoring power or communication channel or restarting the terminal. If the engineer cannot eliminate the problem on his own or if replacement is needed, he contacts the customer’s specialists.
If the signal at the location is too weak for stable operation, information about the bad signal is communicated to the customer, who then decides whether the terminal should be removed or the signal amplified. If the customer decides to remove the terminal, then, with an appropriate order, engineers dismantle the equipment or transport it to a new location.
In total, engineers responded to 2,300 work orders in 2018. For critical requests, specialists arrive on site within 4 hours and within 12 hours for other cases.
Denis Dyachenko, Ozon head of the development of the terminal network, says:
“We chose ICL Services as the main contractor because the company has extensive expertise in the market. It was able to provide us with unique conditions regarding the price and quality of its services. In addition, the team is able to work quickly, which is very important. Our business is developing rapidly. In 2018, Ozon’s sales turnover grew by 73%, and this year we do not plan to slow down. Such growth requires us to rapidly increase the delivery network, so it is important for us to work with a contractor ready to maintain the same pace. We appreciate the flexibility in the processes and the ability to adapt to the rapidly changing realities of the postal business. The transfer of installation and maintenance of parcel terminals to ICL Services allowed Ozon to scale its business several times faster in 19 cities of Russia.”-
Rustem Kasimov, head of the Povolzhsky Ozon division, says:
“ICL Services performed work for us really professionally. The video surveillance system fully meets our requirements. Now we use video surveillance in the Ozon regional logistics centre to analyse situations with lost goods and to prevent thefts. We will be glad to continue cooperation at new Ozon facilities, since we have ascertained in practice that ICL Services is a team of experts. The installation and adjustment of the system were done to a good quality and on time, which is critically important for us, as we are working in the fast-growing e-commerce market.”
Results
- In total, 6.5 km of cable systems were laid in the Ozon logistics centre, four video servers, seven commutator switches and more than 200 cameras were installed at a height of up to 12 meters. 6-8 people were involved in the creation of a single observation point. All the works at the facility was supervised by ICL Services chief engineer.
- The entire video surveillance system is integrated with access control systems and fire systems. In the event of an incident, security personnel can watch the recordings of cameras located close to the sensor and then make a decision on evacuation.
- The centralized system built by ICL Services has reduced the customer’s staff costs and helped the security service respond more quickly to threats.
- In parallel with the work in the logistics centre, ICL Services specialists installed local video surveillance systems on 10 to 15 cameras at pick-up points in Kazan, Izhevsk, Nizhny Novgorod, Samara, Saratov and Ulyanovsk.
- In 2018, ICL Services specialists installed 468 parcel terminals in 14 cities, including Saint Petersburg, Kazan, Yekaterinburg, Rostov-on-Don, Krasnodar, Tver, Sochi, Nizhny Novgorod, Samara, Chelyabinsk, Perm, Ufa, Surgut and Tyumen.
- In total, in 2018, engineers have completed 2,300 responsive interventions. In case of a critical request, specialists arrive at the site within 4 hours, in other cases — within 12 hours.