22.09.2021
Sadales tīkls AS has renovated the company’s Logistics Centre by merging six large warehouses that were previously spread out over various cities of Latvia. The new Logistics Centre with new and improved technological solutions will make it possible to centralise and streamline the supply of materials necessary for developing the electrical network by ensuring annual savings of up to EUR 880 thousand on operational costs.
The reconstructed Logistics Centre is located on Stigu Street in Riga. Up to now, this was the location of one of six material warehouses of Sadales tīkls. The other five were located in Jelgava, Valmiera, Liepāja, Aieviekste, and Daugavpils. In 2019, a decision was made on streamlining the supply process of the company by creating a unified Logistics Centre – warehouse.
Along with warehouse optimisation, the company introduced a new IT solution for managing inventory and supply processes, making it possible to digitise the processes that used to be performed manually. The newly introduced systems will also significantly reduce the administrative burden of processing bills and invoices. Whereas the closing of the other five warehouses will allow saving of resources that were required for leasing and maintaining the premises, as well as servicing the equipment. The reduction of the number of warehouses will also make it possible to decrease the volume of specialised machinery required for material supply, thus decreasing transportation costs. The total sum of savings is estimated to amount to EUR 880 thousand per year.
“Over the last five years, we’ve been focusing on efficiency by reviewing and improving the operational processes of the company, by carrying out the smart meter installation programme, and implementing new IT systems for managing the network. Now, we’ve also completed the warehouse optimisation, which will significantly reduce the costs of our supply chain and will improve the material flow within the company,” Sandis Jansons, Chairman of the Board at Sadales tīkls, explains.
“In order for us to provide our customers with our main service – safe and uninterrupted power supply – we have to transport seven cargo trucks with various materials required for developing and repairing the electrical network to different parts of Latvia on a daily basis. Over the span of a year, we supply our construction and repair sites with approx. 40 thousand poles, many kilometres of cables, overhead lines and a lot of other materials. With the six warehouses, the supply processes were fragmented and complicated. The new Logistics Centre will centralise them, making it possible to organise, oversee, and control the turnover of our supplies more clearly,” Kristīne Sarkane, Member of the Board at Sadales tīkls, elaborates.
Riga was selected as the most suitable location for the centralised Logistics Centre, considering its geographical placement, as well as the specifics of material supply, and the available road infrastructure. The renovation of the Logistics Centre was started in 2019. Approximately one million euros has been invested in it.
Additional information:
Alīna Kozlovska | Sadales tīkls AS | Press Secretary
+371 26123379 | alina.kozlovska@sadalestikls.lv