LPP Logistics, a company in the LPP Group portfolio, has been operational since August this year. Spinning off a separate entity responsible for managing the supply and distribution network is a response of the Polish clothing producer to the growing importance of efficient logistics in the entire supply chain and the decision to further develop LPP in other European directions. LPP Logistics, as a new operator on the market, currently manages warehouse facilities with a total area of nearly 400,000 sq.m. The company, which as of today provides comprehensive and modern warehousing, freight and distribution services, is also planning further investments and increased employment.
The changes that have taken place in the retail industry in recent years have shown that efficient and comprehensive logistics facilities are the answer to the dynamically changing market environment. The LPP Group has been investing in technology, as well as supply and logistics management systems for many years now. However, the development of the omnichannel sales network and the digital transformation of commerce made the decision to accelerate the expansion of the network of warehouse facilities and strengthen competence in logistics services one of the key business objectives of the Polish clothing producer.
– The past few years have seen a major progress for LPP in terms of logistics. The full comprehensiveness of the services provided, from sea freight, rail and road freight, warehouse logistics, and even our own customs agency and the regular distribution of goods on nearly 40 markets, made us ready to take the decision to establish a separate logistics operator – LPP Logistics. It will be responsible for handling volumes reaching today even tens of thousands of TEUs, i.e. 20-foot containers, annually in imports and distribution of approximately 400 million pieces of goods, a quarter of which in e- commerce shipments alone – comments Jacek Kujawa, CEO of LPP Logistics.
Due to the sustained high sales dynamics and with the geographically highly dispersed business of the Polish clothing manufacturer, it was necessary to decentralise and further develop the distribution network. Therefore, the past few years have seen intensive work on the part of LPP to strengthen its operational capacity. The rapid development of the warehouse facilities portfolio currently entails a requirement to adopt a strategic approach and tailor-made solutions in the management of this area.
– By offering the best practices in the area of warehouse logistics built on advanced IT systems, such as WMS, or warehouse automation including innovative sorting systems, an automatic miniload warehouse for 1.2m cartons, or RFID technology, as well as a diversified range of transport services, the new company can ensure optimum distribution of goods on a large scale and become one of the biggest logistics operators on the Polish market, not only for LPP – assures Sebastian Sołtys, Vice-President of LPP Logistics.
LPP Logistics will manage a network currently encompassing seven locations in Poland and abroad with a total area of nearly 400,000 sq.m, including distribution centres in Pruszcz Gdański and Brześć Kujawski, as well as five e-commerce warehouses in Poland and abroad, which will soon be joined by another, currently under construction Fulfillment Centre in Jasionka near Rzeszów covering the area of 69,000 sq.m.
Following the investments in solutions supporting comprehensive logistics services and handling advanced warehouse processes, LPP Logistics also plans to expand its team of logistics specialists.
– With the planned development in mind, we will be looking for sea freight forwarders, road forwarders, customs agents, automation engineers, e-commerce logistics specialists, analysts, electricians and maintenance electrical mechanics, as well as staffing in further newly constructed facilities. A month ago, we also started the recruitment process for the FC warehouse under construction in the Podkarpacie region, which will ultimately employ around 1,000 people – explains Sebastian Sołtys.
LPP Logistics plans to continue the dynamic development of its logistics network in the coming years. Among other things, opening of two additional warehouses every year is envisaged. Due to the growing share of e-commerce operations, the company is also considering warehouse robotics solutions, including those based on AMR (autonomous mobile robots), which the market predicts will be of strategic importance in increasing the efficiency of Fulfillment Centre warehouses in the coming years.
– We hope that the broad scope of our activities, including the provision of comprehensive sea, rail and road freight services, as well as our market standing, established over the years, will soon make our team expand to include more specialists who will develop LPP Logistics together with us. I am convinced that our potential and international experience in running warehouse facilities will soon place us among the leading logistics operators on the market – adds Sebastian Sołtys.
The LPP Group’s brands remain the largest customer of LPP Logistics but over the next years the operator does not preclude looking for areas where it could use its logistics and warehousing potential for external entities.
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 and distributes clothing and accessories to 3 continents every year. 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.