Veikkaus logistics and service operations outsourcing
Creating reliable and cost-efficient logistics operations
The challenge
Veikkaus delivers over 200 000 parcels annually to around 5500 Veikkaus stores across Finland. The shipments cover a variety of goods from spare parts to campaign materials and lottery tickets. Originally, storage and shipping of goods have been done in-house while transportation has been outsourced. Veikkaus has a continuous need to ensure the high efficiency and service level of these operations. Over time, new needs have arisen as the old Veikkaus, RAY and Fintoto merged - all with their own logistics operations and application of public procurement rules.
How Midagon helped
The co-operation between Midagon and the old Veikkaus started in 2011 when Midagon helped Veikkaus to analyse the feasibility of in-house and outsourced options for storage. The same was done for repair and field service operations. As a result, Veikkaus made a decision to outsource these operations. Midagon helped in the RFP process and project management of the transition to the service providers. Over time, Veikkaus and Midagon have continued the co-operation through four RFP rounds, covering also transportation. The latest RFP round was conducted in 2020.
Results achieved
Veikkaus has achieved a reliable and cost-efficient logistics operation working with high service levels. The logistics of old Veikkaus and RAY have also been merged and public procurement rules applied.
