LPP, a Polish clothing producer, has been consistently extending its distribution centre in response to a dynamic development of the company and the growing needs of its customers. The recently completed extension of LPP Distribution Centre in Pruszcz Gdański is another step towards integrating sales channels and increasing the efficiency of logistics processes across the Group.
The LPP Distribution Centre in Pruszcz Gdański is one of the largest and most modern distribution centres in Central and Eastern Europe. It was established in 2008 and in 2013–2015 went through its first modernisation and extension. In response to the dynamically growing demand for an additional storage area and the need to increase the efficiency of the processes of receiving and dispatching goods — in 2018, the Pomeranian company decided to extend the complex again.
The investment worth nearly PLN 200 million comprises 21 thousand square meters of modern warehouse space and 4.4 thousand square meters of office space, allowing for centralisation of logistics departments and 120 people employed there responsible for the company’s supply chain management. The total area of the centre is currently 91.4 thousand square metres.
– The Distribution Centre in Pruszcz Gdański will continue to play a key role in the entire supply chain of LPP. It is from here that further service of the chain of stores in Poland and abroad will be provided, and regional Fulfilment Centres will be supplied. Given the scale of our business, the focus on the automation of warehouse processes is crucial for us. Thanks to the investment, the efficiency of this facility has increased from 1.5 million to 1.84 million garments shipped daily – stresses Sebastian Sołtys, Logistics Director, LPP.
The added part gained 29 additional alleys in the automated warehouse, each 18 metres high and 83 metres long, providing storage space for 522 thousand cardboard boxes. The new space also gives the company from Pomerania the possibility of carrying out nearly 90,000 additional MiniLoad warehouse operations per day and almost 50,000 boxes of receipts and shipments every day. – At present, our MiniLoad has 58 alleys – it is a unique scale of an automated warehouse in Central Europe – adds Sebastian Sołtys.
In the extended part of the Distribution Centre there are also another 10 RFID tunnels and 10 RFiD stations, whose task is to identify a single product in the supply chain and to precisely control incoming and outgoing goods. The storage capacity of our centre has increased to a total of nearly 1.5 million cardboard boxes. An advanced warehouse management system ensures greater dynamics and more optimal synchronization of the flow of goods throughout the supply chain. In addition, it is worth noting that thanks to the centralisation of the logistics departments in the facility, we are able to develop the flexibility of LPP Group’s entire logistics processes even more efficiently, and thus to react faster to market needs – concludes Sebastian Sołtys.
The global supply and distribution network of LPP Group is managed centrally and consists of an integrated system of Distribution Centres and Fulfilment Centres (FC). With the dynamic development of the group, in 2020 another FC in Slovakia will be added to the existing FC in Gdańsk, Stryków, Moscow and Romania. Two years later, the current network of distribution centres located in Pruszcz and Moscow will be complemented by another one in Brześć Kujawski, with an area of 120 thousand square meters. Taking into account also the annual sales of over 200 million pieces of clothing and the presence of the LPP brands offer on 39 European, Asian and African markets — the development of the supply network and the integration of sales channels is a natural development direction for the Pomeranian company.
LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1700 stores with the total area of over 1 million sq.m. The online offer of the brands collections is available on 30 markets. Through a global supply chain, the Polish clothing producer distributes over 200 million pieces of clothing to three continents. LPP plays another important role as it employs over 25 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.