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LPP S.A. Press room LPP Logistics opens the largest Fulfillment Centre warehouse in the distribution network of LPP Group

LPP Logistics opens the largest Fulfillment Centre warehouse in the distribution network of LPP Group

06.09.2022

On 6 September this year, a new Fulfillment Centre in Pruszcz Gdański was officially opened, which will ultimately generate up to 2 thousand new jobs in Pomerania. The facility, delivered by Panattoni – the leader in the industrial real estate market in Europe – will be dedicated to e-commerce services and is currently the largest warehouse of this type in LPP Group’s distribution network. With a total area of 64,000 sq. m, it will accommodate up to 6m items of clothing and accessories and owing to the use of modern technologies and advanced warehouse automation, it will be able to process up to 100,000 shipments per day and the same number of returns. The investment supports the distribution of online orders to the Group’s customers in Poland, Germany, Ukraine, the Baltic States, as well as Italy and Spain. The Fulfillment Centre in Pruszcz Gdański is the first facility to be opened under the auspices of the logistics operator – LPP Logistics.

Situated 15 km from Gdańsk, the warehouse has been located at Panattoni Park Tricity South II in Pruszcz Gdański, in the vicinity of the A1 motorway and express routes S6 and S7. Its convenient location, very close to the Group’s Distribution Centre, allows the new facility to support the distribution in Poland, as well as ensure very fast availability of goods in the Polish clothing manufacturer’s online store also for customers from Germany, Lithuania, Latvia, Estonia, Ukraine, Italy, and Spain.

Thanks to the location of the new facility near the LPP Logistics Distribution Centre in Pruszcz Gdański, which, in addition to supplying the Group’s stores, also handles deliveries to the Fulfillment Centers network, we can ensure a smooth flow of goods throughout the distribution chain, and at the same time implement the concept of logistics network development in accordance with the omnichannel strategy of LPP –says Jacek Kujawa, president of the management board, LPP Logistics.

The newly opened investment was developed by Panattoni, a leader in the industrial real estate market in Europe, which has already completed nearly 17m sq. m on the Old Continent, of which over 11m in Poland. For LPP Group, the developer previously delivered 30,000 sq. m within Panattoni Park Gdańsk III and will also complete nearly 70,000 sq. m within Panattoni Park Rzeszów North in early 2023.

– Over 170,000 sq. m within the portfolio of developments for LPP Group that we will have achieved in the coming months confirms our excellent understanding of the client’s needs and the trust they have placed in us. By delivering modern industrial facilities, we are driving the international expansion of the Polish company. Yet again, our experience in e-commerce projects is also paying off. More than 30% all industrial facilities in Poland handle online sales, and the experience of companies such as Panattoni is attracting international e-commerce to the domestic market – says Marek Dobrzycki, Managing Director at Panattoni.

The extension of the Fulfillment Center in Pruszcz Gdański is LPP Logistics’ response to the growing interest of the Group’s customers in online shopping and the resulting demand for additional operational space. The new warehouse will increase the efficiency of LPP’s e-commerce logistics and is another step towards the development of multi-channel sales. The launch of the new warehouse in LPP Logistics’ global network of Fulfillment Centres took into account the growing and dynamically changing market requirements.

Due to the growth of e-commerce sales and the development of omnichannel networks, a need emerged for additional warehouse space, which would allow faster availability of goods in the online store, as well as more efficient customer service. Therefore, we are pleased to have successfully completed all operational work related to the construction of the facility in Pruszcz Gdański. All the more so that this is the first warehouse we are opening as a logistics operator managing the supply and distribution network of the LPP Group – says Sebastian Sołtys, vice-president of LPP Logistics.

The new facility covers a total of 64,000 sq. m, with a separate office area for which more than 2,000 sq. m has been allocated. A great advantage of the warehouse is its comprehensive function. It is adapted to handle shipments and returns simultaneously. This is due to its atypical two-part structure, which consists of a returns hall opened in July last year, occupying 12,000 sq. m, and a new 49,000 sq. m shipping hall connected directly with it. The warehouse is equipped with a 400 m long automatic conveyor line, which is connected to a cross-belt shipping sorter, enabling fast and accurate grouping and transport of finished parcels. Efficient handling is also supported by high-performance flow connectors, separators and an advanced vision system for scanning shipping labels. The entire operation is managed by a WMS fully integrated with a module that uses artificial intelligence algorithms to shorten picking paths. Thanks to modern warehouse automation solutions, the launched Fulfillment Centre has the capacity to store as many as 6m items and handle up to 100,000 orders and the same number of returns per day.

Warehouse automation has many benefits and allows for faster order processing, increased operational capacity, better space utilisation and a significant reduction in the risk of errors. The implementation of modern technologies based on artificial intelligence enables the optimisation of operations, which, in turn, increases warehouse efficiency. All that translates into efficient handling of customer orders – emphasises Sebastian Sołtys, vice-president of LPP Logistics.

During the execution of the Panattoni Park Tricity South II project, particular attention was paid to solutions from the area of the so-called sustainable construction. The facility, which is currently undergoing Excellent level BREEAM certification, was designed and equipped with, among other things, BMS technology allowing for lower operating costs and limiting the facility’s negative environmental impact. The system automatically controls electricity, lighting, ventilation and heating, as well as reduces consumption.

Green areas and flower meadows have also been laid out in the area surrounding the facility, which will eventually generate up to 2,000 new jobs. Transport facilities for employees have also been implemented, including, among other things, modified bus routes.

LPP Logistics currently manages a warehouse infrastructure of nearly 400 sq. m and the new Fulfillment Centre in Pruszcz Gdański, as announced by the operator, is one of the elements of the dynamic development of its logistics network. The opening of further facilities will follow soon.

Zdjęcie z lotu ptaka na budynki Fulfillment Center w Pruszczu Gdańskim

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LPP Logistics is a logistics operator managing the supply and distribution network of the LPP Group, which includes distribution centres and Fulfillment Centres with a total area of 400 thousand sqm. It operates on 3 continents, providing a full range of logistics services – from sea, rail and road freight, through the operation of its own customs agency, to advanced warehouse logistics using modern systems such as WMS, warehouse automation or Warehouse Intelligence solutions based on artificial intelligence algorithms.

LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years, it has been successfully operating in Poland and abroad, offering its collections in such prestigious capitals as London, Helsinki or Tel Aviv. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay, whose offer is available today in stationary and online stores in nearly 40 markets worldwide. The company has a chain of over 1700 stores with the total area of 1.4 million m2. LPP also plays an important role as it employs over 24 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.

Panattoni is the European subsidiary of Panattoni Development Company, one of the largest developers of industrial space worldwide, with operations in 26 locations in North America and Europe, as well as in India. Panattoni has been present on the Old Continent since 2005. In addition to Poland, it has representative offices in Germany, the UK, the Czech Republic and Slovakia, the Netherlands, Spain, Portugal, Hungary, France, and Sweden. To date, the company has completed projects in Europe totalling nearly 17m sq. m. In 2022, the company opened its first office in India.

Panattoni operates a structure dedicated to tailor-made, build-to-suit projects. Key customers include companies such as Amazon, DB Schenker, DHL, Fedex, DPD, XPO, Coca Cola, Weber, Whirlpool, Bosch, Volkswagen, and H&M.