Continuing IT turmoil promotes Itella logistics
Transportation and information technology live in close symbiosis at Itella. If there is a malfunction in the information system, customers receive neither parcels nor bills. The renovator of Itella’s IT section has long since been Tieto.
“The huge number of events inevitably makes the information systems complicated and hard to control. At the same time the tolerance for system errors is
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Tommi Nylander, ICT Manager, Itella, compares IT systems to an old building that needs constant renovation to keep in shape. The renovator of Itella’s IT section has long since been Tieto. |
extremely small, just a fraction,” says Tommi Nylander, ICT Manager, Itella.
Itella Logistics operates in eight countries; Finland, Scandinavia, Baltic countries and Russia. It provides services for carriage and forwarding, transportation, delivery and storage. For example in Finland it carries 30 million packages annually.
“The reliability of our systems is essential for us; without it we could not fulfil the service promise we give to our customers.”
Continuity as a goal
Itella’s distribution network can trace the path of shipments in the world of bits. Planning streams of goods requires information technology.
“If the information technology stagnates, the flow of goods delivered to customers slows down at the very least.
Although money and savings are important for business these days, the focus of IT investments should be in the continuity of operations. It will not do to cut back too much on IT investments.”
“In practice we modernize the old and develop new within the same IT projects. Oftentimes it is very reasonable to further develop the established software technology,” Nylander continues.
Aiming at good return on IT investments
Naturally there is a price tag on every IT project. The price should weigh up the necessary investment and on the other hand the benefits to be reached through the systems. When the purpose of the project is to ensure the reliability of transports and to develop new services, the price is not the determinant.
Modernizing projects always prolong the life cycle of a system, increasing the return on the existing investments. Currently Itella is modernizing its entire transport system in a five-year project.
“This is a question of finding optimal driving routes and of the smart loading of lorries, for example. Optimizing the driving routes will reduce the carbon footprint of transportation, which also benefits the customers. The main part if the IT project, however, is taking the reform to the field. We should know how to make best use of the modern system.”
Much integration needed
Tieto has a long history of co-operation with Itella.
“It is essential that the supplier understands the business of the customer,” Nylander says.
Tieto has built several IT systems for Itella, including a packet sorting back end system, and has been responsible for maintenance and development of systems.
“Integration is one of the most demanding areas of logistics IT projects. Nowadays it is simply unthinkable not to integrate a new system into other existing systems,” says Jarkko Elonen, Manager in charge of Tieto’s Trade and Logistics operations in Russia, from St. Petersburg.
Itella also has a strong presence in Russia, where it is the leading provider of storage services. Its IT investments in Russia are second-largest in the company, next only to Finland.
“It is essential for a successful IT project that the company and the IT supplier discuss these topics openly and understand the demands of each other. That would clear the way for a successful project,” Elonen sums up.
Text by Tiina Ruulio
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