KT.team has created an automated product labeling system for FM Logistic based on the CROC Cloud

KT.team has developed a solution for the international logistics corporation FM Logistic that simplifies the interaction of manufacturers and sellers with the State Information System for Monitoring Goods Turnover (GIS MT). The solution is called Paradigma and is deployed on the CROC Cloud, which provides a reliable platform for its operation.

Paradigma→ allows you to fully control the entire life cycle process of the labeled product from production to withdrawal from circulation. This increases the transparency of the process and reduces the burden on warehouse employees who do not need to manually manage all transactions in GIS systems.

“When the law on product labeling came into force in 2019, we analyzed the market, found out that some companies were ready to outsource the routine work with codes, and saw this as a business opportunity. Initially, we tried to refine existing systems with other contractors, but the first iteration failed. Then we decided to turn to trusted partners — KT.team and CROC Cloud Services, with whom we worked on other projects. In 5 months we were able to create a prototype of the solution, and 8 months later we were able to fully launch it. As a result, Paradigma allowed us to earn additional profit by selling the service to our partners,” said Jonathan Volozhchik, Director for Information Technology, Processes and Innovation at FM Logistic Russia.

Today, FM Logistic in Russia alone has 22 warehouse complexes with a total area of more than 816,000 square meters, and the number of customers exceeds 1,000. Most FM Logistic partners offer products that are subject to labeling.

The goal of the project was to create an IT system that would operate around the clock every day and process tens of millions of codes simultaneously. At the same time, many operations are performed with each code that are recorded in the system: it is scanned each time for any operation within the warehouse, wholesale or retail, etc.

To work with such an array of data, a large amount of computing power is required, so the system is based on the CROC Cloud, which allows the platform to quickly scale during peak loads. In addition, CROC Cloud has a guaranteed SLA of 99.95%, which means that downtime is no more than 22 minutes per month.

In just the first year of operation, Paradigma has labeled more than 25 million items. Today, the product is constantly evolving and increasing the number of product groups it works with: from perfumes to tires and tires.

“We understood how important it was to create a stable system, as every failure could cost FM Logistic and its partners both financial losses and legal liability. Therefore, we visited FM Logistic warehouses many times, spent hundreds of hours consulting with employees, from warehouse employees to department managers, and studied the main business processes and dozens of invested business processes. Ultimately, all these efforts allowed us to create a high-quality IT product,” said Anton Kopkin, CEO of KT.team.

The system is based on a group of services, each of which is responsible for a separate operation. Thanks to this, FM Logistic customers can use the service both in full and in part. For example, a company labels goods on its own, and if it wishes, it can upload codes to Paradigma and entrust FM Logistic to further track goods from moving in stock to withdrawing goods from circulation.

“In this project, the CROC Cloud Services team is responsible for ensuring the constant availability of the service, as the logistics business does not tolerate downtime, as this directly affects the quality of services provided to end customers. Therefore, we helped the customer build an infrastructure in the cloud that meets all the requirements for system reliability and resiliency. In addition, it is the cloud platform that makes it possible to deploy such large systems at a high speed, as well as increase resources if necessary,” said Sergey Zinkevich, Director of the CROC Cloud Services Business Unit.