CROC has implemented a tracking system based on video analytics for one of METRO Cash & Carry’s logistics terminals, thus enabling the retailer to monitor the movement of objects and automatically re-create routes for any set time period using footage from all CCTV cameras.
The project sped up the detection of goods loading errors, dramatically cut undocumented costs caused by stock regrading, as well as excess and short deliveries, and helped optimize security staff performance. However, the key benefit was a 50% reduction in losses related to misdelivery complaints.
METRO Cash & Carry is a leading international wholesale and retail player, operating a total of 91 stores in 51 Russian regions and working with over 5,500 suppliers.
With huge sales volumes, large retail chains inevitably face problems related to stock regrading, excess and short deliveries, as well as potential losses from any supply chain link (warehouse, transportation company, or store). When handling misdelivery complaints, it is important to promptly provide evidence of compliance with technological processes. Otherwise, a counterparty will have to compensate any losses.
‘Manual’ analysis of such situations is resource and time-consuming. Indeed, logistics terminals often maintain a dedicated team of operators to investigate incidents and analyze videos. Therefore, many companies set a deadline, usually a few hours, to investigate an incident and then, if the investigation fails, write-off any losses as undocumented costs.
One logistics terminal at METRO’s distribution center used to take 1-12 hours to analyze such incidents. To automate this process, CROC deployed an inter-camera tracking system that captures the movement of order assemblers across the warehouse and searches the archive by event (e.g. pallet gathering or vehicle loading). Since any incident can now be investigated within 10-30 minutes, the customer is able to cut undocumented costs and accumulate necessary statistics to optimize work processes and reduce the total number of undocumented costs. These measures have helped to halve losses related to misdelivery complaints.
Before implementation of the system, the customer’s staff used to manually track the movement of objects from one camera to another. Today, an operator just needs to click on any object (order assembler, pallet, loader) on the video to see their movement across all CCTV cameras. Then, once the operator specifies a relevant time interval, the system will create a ready-to-use video file from all object movement clips. This functionality is possible as each camera is assigned to a particular part of a secured territory map. When one camera loses sight of an object, the system automatically detects the next camera along the projected path.
In addition, CROC’s video surveillance solution allows the security team to monitor the real-time warehouse situation and promptly respond to emergencies, thus reducing the customer’s operational costs.
“The developed solution can be used in any crowded place, such as a mall, commuting hub, or airport. A user can select an object and track its movement and destination within the camera coverage area. If integrated with a law enforcement database, such video analytics system can promptly recognize and track persons placed on a wanted list. Once a camera detects a potential match with a ‘black list’ profile, an alert is immediately sent to a guard console, providing operational units with details of the person's location and current route,” said Ivan Tsarev, Head of CROC's Low-Current Systems.
|About METRO Cash & Carry
METRO Cash & Carry has been operating in Russia since the establishment of its Moscow head office in 2000. Just a year later, in November 2001, the company opened its first two wholesale trade centers in Moscow. To date, Metro’s Russian office has opened 92 stores in 51 Russian regions, including REAL hypermarket in Kotelniki town (Moscow Region), with the company currently employing close to 16,000 people.
METRO Cash & Carry’s customer base includes small and medium businesses (legal entities and individual entrepreneurs) that buy goods for their professional activities. The company’s stores boast almost 5 million loyal customers, mainly HoReCa enterprises, small retailers, and other for-profit and government organizations.
The company partners with some 5,500 suppliers (both manufacturers and distributors), including 1,400 local ones. Cooperation with METRO Cash & Carry gives FMCG suppliers, especially regional manufacturers, an excellent opportunity to promote their products in other regions through the company’s effective and extensive chain of stores, with suppliers including almost all large food manufacturers in Russia.About CROC
CROC has been operating in the Russian IT market since 1992, ranking among the top 10 IT companies in Russia for over 14 years*. CROC is one of the top 5 IT service providers and largest IT companies in Russia (Expert Rating Agency, 2018), as well as one of the top 3 systems integrators (IDC, 2018) and top 10 consulting businesses (Expert Rating Agency, 2018) in Russia.
In 2018, CROC expanded its project business by opening two business units (CROC Digital and CROC Cloud Services) and thus became a new kind of systems integrator.
CROC Digital focuses on digital transformation, enabling CROC’s customers to boost sales and quickly win new markets.
CROC Cloud Services is a standalone business unit of CROC that offers cloud services, managed Â2Â services, and commercial off-the-shelf products. The unit specializes in hosting and supporting customers’ business-critical services based on CROC’s proprietary platform and data centers, which are compliant with Uptime Institute’s Tier III "Gold Certification of Operational Sustainability" standard. In addition, CROC is one of Russia’s top 3 IaaS providers (CNews, 2017) and the most mature cloud service provider (TAdviser, 2018), offering the number one cloud platform in terms of flexibility and ease of use (TAdviser, 2017). Consequently, over 300 industry leaders entrust their services to CROC’s cloud.
CROC is the only Russian systems integrator with its own geographically distributed fault-tolerant data centers compliant with Uptime Institute TIER III requirements. Moreover, its flagship Kompressor data center is certified for compliance with Tier III Gold Certification of Operational Sustainability and has been operating non-stop for over seven years now. CROC’s data centers also offer a wide range of IaaS/HaaS and related maintenance services.
Traditional project-focused business operations help CROC retain its leading position in innovative solutions, including blockchain, Big Data, artificial intelligence, machine vision, virtual and augmented reality, robotic process automation (RPA) and drones, Internet of Things (IoT), Industry X.0, Building Information Modeling (BIM), and Smart City. In addition, these operations also allow CROC to gain a high level of competence in integrated platforms for interstate and interagency interaction, software and hardware development, mobile apps and digital platforms for customer interaction, IT support and outsourcing, data storage and protection optimization, omnichannel consumer communication, implementation of industrial solutions, and creation/operation of engineering infrastructure for buildings and data centers.
CROC is the number one Russian IT service provider in the energy and manufacturing (Manufacturing Management portal, 2018) and healthcare (CNews, 2017) sectors and ranks among the top 3 and top 10 IT service providers for transportation companies and retailers, respectively (CNews, 2018). Furthermore, CROC also provides Market Tech and HR Tech solutions.
* CNews 100: The largest IT companies in Russia, 2005-2014; TAdviser 100: The largest IT companies in Russia, 2017; Expert Rating Agency: Russian top information and communication technology companies, 2004-2018; Russian Information Agency: Russia’s top IT companies, 2011-2015.
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