Russian express firm SPSR records double-digit revenue growth and enhances network

ITA Consulting GmbH - CEP Research


SPSR, one of the largest Russian express delivery companies, again generated high double-digit growth last year despite the unstable economic environment in the country.

In 2008, the Moscow-based company increased revenues by 30% even taking into account the company’s decreased business activity in the fourth quarter of the year. In December alone, SPSR delivered more than 1,000 tons of mail items, not counting freight shipments. The absolute revenue figure for last year was not disclosed.

The company said that it has developed a programme of anti-crisis measures to support its customers during the current difficult economic situation in Russia. The implementation of state-of-the art technologies and the optimisation of shipment handling processes have reduced handling time and costs which enabled the company to reduce prices of several services while increasing quality indicators.

Another important factor contributing to the improved customer service was the optimisation of a single routing network. New inter-regional routes have been implemented reducing delivery times to the most remote regions of the country. Thanks to an intensified use of the routing network in the Siberian region, the cities of Western and Eastern Siberia are now interconnected.

After the realisation of some anti-crisis measures, the transportation capacity within the cities is now used more widely including logistics hubs where transit centres and exchange points of the company are located. The cities include St. Petersburg, Krasnodar, Yekaterinburg, Novosibirsk, Khabarovsk and Vladivostok.

In 2008, SPSR further improved the infrastructure of its branch network. The company added two more branches in Surgut and Novokusnezk and 13 new offices. It now counts 119 branches and 90 offices in all Russian regions and CIS countries. In addition, 18 branches and offices were moved to new larger sites as well as production and warehousing facilities that meet all current requirements. This has enhanced the quality of handling bringing it to a considerably higher level while reducing delivery times,SPSR said.

To provide more convenience to customers, the company launched Saturday delivery and pick-up services. It also opened a state-of-the-art customer service centre in St. Petersburg where the customers not only have the possibility to place an order or pick up their shipments but also get the most detailed information on the whole service portfolio.

Moreover, about 20% of the company’s fleet has been renewed. One of the measures for ensuring smooth Christmas delivery in Moscow last year was the implementation of 50 new vehicles with different load capacity.

SPSR said that it has also developed its activities as a 3-PL provider at a time when most companies prefer a whole service package when choosing a logistics partner. The management has worked out different customer service approaches providing individual logistics solutions according to the specific needs of a particular industry. These include insurance, banking sector, manufacturers and suppliers of electronics, telecommunications solutions, technical equipment, high-priced clothes and shoes, cosmetics and pharmaceutical products, car suppliers and manufacturers and distance trading. Using these individual services has helped customers not only reduce their expenses for freight transport and warehousing logistics but also optimised business processes as a whole.