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Ozon

Ozon is one of Russia's largest e-commerce websites with more than 1.6 million products offered in 24 categories, from books and clothes to food and health products. Every day, the company processes over 80,000 orders, more than 90% of which are delivered exactly at the time interval chosen by the client. Today OZON has 1.5 million unique users per day and a loyal user base of over 30 million people.

ICL Services and Ozon began their partnership in 2017, six months after the opening of the first online store warehouse complex in the Volga Federal District. Specialists from ICL Services have helped to improve the video surveillance system, reduce staffing costs and simplify the work of security service.

In addition, engineers from ICL Services install and service Ozon automated parcel terminals in 19 Russian cities.

Key Challenges

The Ozon logistics complex in the village of Stolbishche (Tatarstan) is a mezzanine-type metal, three-story structure inside the warehouse complex. Each floor of the complex has 20-25 rows with bays.

The customer needed a system that would reduce theft, prove its occurrence and ensure surveillance at the prepackaging, packaging and storage sites. Other requirements included integrating video surveillance with the security and fire-fighting systems, as well as the access control system. Doing so allowed the security team to generate reports on alarms and sensors in addition to managing the system in a single interface.

The customer reached out to ICL Services and asked to assess the calculations of the previous contractor. The customer later requested a quote for designing, constructing, installing, equipping, and commissioning. ICL Services specialists were able to reduce the total cost of the project, and the company signed a contract for the provision of services.


Goals and objectives

  • To reduce the burden on the security team
  • To install commercial equipment in 14 cities
Solution

Implemented our solution

  1. After completing the survey and design works, ICL Services engineers helped the company to select equipment and determine the location of cameras. Later, the design of the IT system and the installation of a video surveillance system began, as well as the process of integrating the fire alarm system with a separate VideoNet software package. It helps the security team analysing recordings, install cross line detectors and left object detectors, and to trigger signals about incidents.
  2. In February 2018, ICL Services specialists were trained in Ozon's Moscow office and began to install, configure, and service Ozon automated parcel terminals in several Russian cities.

    ICL Services engineers are responsible for logistics. They pick up automated parcel terminals from the customer’s warehouse, check their integrity after delivery, and fix any damages if necessary. Then they install the equipment, mount the security system, and connect the service and user lockers.

    After installation and configuration, engineers check the communication channels, adjust the camera capture angle, test the device for lockers opening and take a picture of the automated parcel terminal from all sides to confirm that the camera is installed exactly where the customer planned.

    When the premises don't allow for the automated parcel terminal to be placed on the planned site, the engineers propose a new location and coordinate it with the customer.

  3. After delivery, installation, wiring, and configuration, ICL Services engineers keep the automated parcel terminals in working condition. They carry out preventive maintenance, replace spare parts, and eliminate problems. When the connection with an automated parcel terminal disappears, the monitors do not work, the bar codes are not scanned or there is a blackout, an engineer is dispatched at the customer's request. In each city, there is at least one engineer who serves the automated parcel terminals.

    “Ozon would need to have a large staff to carry out this amount of work. Engineers would need to know how to service the network, computers, equipment, and how to support and service automated parcel terminals. In addition, it's costly to have full-time engineers throughout Russia,” notes Nikolay Zolotsev, head of the service provider team of the on-site technical support team at ICL Services.

    The onsite engineer evaluates the situation and resolves the problem if possible. They restore power or the communication channel or reboot the terminal. If the engineer cannot fix the problem on his own or needs to replace equipment, he contacts the customer’s specialists.

  4. If the onsite signal level doesn't allow for stable operation, information about the bad signal is communicated to the Customer, who then makes a decision whether to dismantle or amplify the signal. If the decision is to dismantle the equipment, engineers dismantle the automated parcel terminal or transport it to a new location after making an order.

    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.

  5. Denis Dyachenko, Head of Automated Parcel Terminal Network Development at Ozon:

    “We chose ICL Services as the main contractor because the company has a lot of expertise in the market, was able to provide us with a unique price/quality ratio, and also knows how to work quickly. Our business is growing rapidly. In 2018, Ozon's revenue grew by 73%, and we don't plan to slow down this year. This kind of growth requires us to rapidly increase the delivery network, that's why it's important for us to work with a contractor who is willing to work with us at the same pace. We value flexibility in our work process and the ability to adapt to the dramatically changing realities of the business of automated parcel terminals. Transferring installation and maintenance work on automated parcel terminals to ICL Services has enabled Ozon to scale its business several times faster in 19 cities across Russia.”
  6. Rustem Kasimov, director of the Volga division at Ozon:

    “ICL Services have done a top-notch job for us. The video surveillance system fully meets the stated requirements. Now we use video surveillance in the regional logistics centre of Ozon to analyse situations with lost goods and to prevent theft. We will be happy to continue our cooperation at the new Ozon facilities because we saw ICL Services' team of experts at work. The installation and operation of the system were done efficiently and on time, which is crucial for us as a company operating in the fast-growing e-commerce market.”

Results

  • In total, 6.5 km of cable systems were laid at the Ozon logistics centre, four video servers were installed, seven switches and more than 200 cameras were mounted at an altitude of up to 12 meters. 6-8 people were involved in creating a common observation point. The work at the site was supervised by the chief engineer of ICL Services.
  • The entire video surveillance system was integrated with access control systems and fire systems. In the event of an incident, security officers can review camera recordings close to the sensor to make a decision on evacuation.
  • In parallel with the work at the logistics centre, ICL Services specialists installed local video surveillance systems for 10 to 15 cameras at distribution outlets in Kazan, Izhevsk, Nizhny Novgorod, Samara, Saratov, and Ulyanovsk.
  • In 2018, ICL Services specialists installed 468 automated parcel terminals in 14 cities. The cities were St. Petersburg, Kazan, Yekaterinburg, Rostov-on-Don, Krasnodar, Tver, Sochi, Nizhny Novgorod, Samara, Chelyabinsk, Perm, Ufa, Surgut, and Tyumen.
  • 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.

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