Russian Electrical Equipment Manufacturer Optimizes Logistics Using a Digital Model
Russian manufacturer and supplier of electrical and lighting products IEK GROUP is developing a long-term supply chain strategy for its distribution network. The plan covers the 2026–2030 period and is being created in partnership with consultants from LAMACON. Its primary goals are to reduce operating costs and shorten delivery times for customer orders.
From Digital Modeling to Real-World Efficiency
To optimize its supply chains, the project team designed a strategic infrastructure model spanning five years. As a first step, experts created a digital twin of IEK GROUP’s existing logistics network and then calculated the most efficient path for its future development. The scenario takes into account customer service requirements as well as decisions related to logistics infrastructure. The scale of operations is significant: IEK GROUP currently operates nine warehouses across different regions of Russia with a combined area exceeding 100,000 square meters. Two of them, located in Yekaterinburg and Rostov-on-Don, were opened only recently, in 2024.
Meanwhile, the company has already managed to shorten service times for customers and partners in the Ural, Southern, and North Caucasus federal districts. All warehouse facilities handle inbound goods, processing, storage, outbound shipments, and distribution. Under the new concept, IEK GROUP can reduce costs by relying on just two major hubs. One of them is a warehouse of approximately 68,000 square meters located in the Kuvekino industrial park. The lease agreement for this facility became the largest deal in the Moscow region’s warehouse real estate market. According to the project’s designers, these hubs will serve customers directly across Russia, with cost reductions expected to be realized by 2030.
More Products, Faster Access
The strategy developed jointly with LAMACON experts is not limited to cost efficiency. It is also focused on expanding regional presence, accelerating the launch of new products, and improving assortment availability across the regions. To achieve this, LAMACON specialists analyzed the situation and evaluated more than 15 different network configuration scenarios. The priority was to assess the entire supply chain end-to-end, from the entry point at manufacturing facilities to the exit point at the customer.
The resulting mathematical model is designed to eliminate inefficiencies in logistics schemes that may arise due to the geographic separation of warehouses and production sites. Importantly, the model accounts for the specifics of IEK GROUP’s product range, sales patterns, and customer expectations. By rapidly simulating alternative scenarios, company managers can track how inventory levels, service performance, and overall economics change under different configurations.
A Foundation for Long-Term Growth
The creation of a digital supply chain model strengthens the operational resilience of IEK GROUP, a leader in Russia’s electrical engineering market, and lays the groundwork for further expansion of its regional footprint and logistics capabilities.
By optimizing internal processes, the company’s customers – both businesses and individual consumers – will be able to receive electrical products more quickly across Russia. Greater logistics flexibility may also help reduce delivery markups for end users.
The new system is expected to support the expansion of IEK GROUP’s product assortment in the regions. Through this project, the company takes a significant step toward optimizing its logistics network, aiming for a balanced combination of minimal costs, delivery speed, and service quality. Over time, this model could become a competitive advantage nationwide and, in the future, support expansion into CIS and EU markets.
