X5 launches online cargo transportation service

X5 Retail Group launches GoCargo service that enables to place shipping orders and distribute them among private carriers based on the cargo’s location and the delivery address
X5 launches online cargo transportation service
18 October 14:50 2016 Print This Article

Russian food retailer X5 Retail Group has launched an online service for booking cargo transportation GoCargo, reports the company’s press service.

The new service enables senders to place shipping orders and distributes them among registered private carriers based on the cargo’s location and the delivery address.

Starting from 2017, GoCargo will be rolled out to all of X5’s networks and used for 100% of their third party shipping orders for Pyaterochka, Karusel, and Perekrestok stores. Lately, it will be also made available to other cargo shippers for their transportation needs.

“The IT framework for GoCargo is based on an algorithm that matches cargo and transport by volume, weight, temperature conditions, shipping dates, as well as loading and parking points. It can process up to 10.000 orders daily. The system is integrated into X5 Retail Group’s ERP infrastructure, which expedites the process of searching for and booking transport, and rules out possible human errors and streamlines the document workflow. GoCargo stores information on the cost and status of shipping orders, along with delivery notes, warrants for transportation, and customers’ documents. The parties exchange legal documents directly through the service using the Electronic Data Interchange (EDI) technology,” reads the X5’s press release.

By the end of 2016, X5’s shipping orders in the Central Federal District will be serviced by around 300 vehicles operated by third party companies that are already registered in the system. In 2017, their number is expected to reach 2.000. What’s more, 100% of its third party shipping orders will be managed via the GoCarGo system which accounts to around 30% of company’s overall cargo shipping volume. The remainder of cargo shipping will be executed by X5’s own fleet, which consists of 1.561 trucks.

In the nearest future, all legal entities and sole proprietors verified by X5’s security service will be able to register to both place and receive orders in GoCargo.

According to X5’s Director of Transport Timur Parshikov the system will enable X5 “to manage transportation more efficiently by optimizing third-party transportation services and cutting logistics costs”.

“Carriers will be able to register and use GoCargo free of charge. As an additional service option for drivers looking for cargo transportation jobs and registered in GoCargo, X5 will rent out and sell trucks suitable for the transportation of its cargo. Other benefits for GoCargo-registered drivers include fuel and maintenance discounts, as well as support from GoCargo experts in drafting legal documents for commercial cargo transportation,” reads the X5’s press release.

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