LPP Logistics opens its largest Fulfillment Center

On September 6th of this year, a new Fulfillment Center was ceremoniously opened in Pruszcz Gdański, which will eventually generate up to 2,000 new jobs in the Pomerania region. The facility, delivered by Panattoni – a leader in the industrial real estate market in Europe – will be dedicated to e-commerce operations and is currently the largest warehouse of its kind in the LPP Group distribution network. Covering a total area of 64,000 sqm, it will house up to 6 million pieces of clothing and accessories, and thanks 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 Center in Pruszcz Gdański is the first facility opened under the auspices of the logistics operator – LPP Logistics.

Located 15 km from Gdańsk, the warehouse is situated in Panattoni Park Tricity South II in Pruszcz Gdański, near the A1 motorway and the S6 and S7 expressways. Thanks to its convenient location, very close to the Group's Distribution Center, the new facility will support distribution in Poland and also ensure very fast availability of goods in the online store of the Polish clothing manufacturer for customers from Germany, Lithuania, Latvia, Estonia, Ukraine, Italy, and Spain.

– Thanks to the location of the new facility near the LPP Logistics Distribution Center in Pruszcz Gdański, which, in addition to supplying the Group's stores, also handles deliveries to the network of Fulfillment Centers, we are able to ensure commodity liquidity in the distribution chain, while simultaneously implementing the concept of logistics network development in accordance with the omnichannel strategy of LPP – says Jacek Kujawa, Vice President of the Management Board of LPP Logistics.

The newly opened investment was carried out by Panattoni, a leader in the industrial real estate market in Europe, which has already completed nearly 17 million sqm on the Old Continent, of which over 11 million in Poland. For the LPP Group, the developer previously delivered 30,000 sqm as part of Panattoni Park Gdańsk III, and furthermore, at the beginning of 2023, it will complete nearly 70,000 sqm as part of Panattoni Park Rzeszów North.

– Over 170,000 sqm as part of the portfolio of projects for the LPP Group, which we will reach in the coming months, confirms an 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 enterprise. Once again, our experience in projects for e-commerce is paying off. Over 30 percent of all industrial facilities in Poland serve online sales, and the experience of companies like Panattoni attracts international e-commerce to the domestic market – says Marek Dobrzycki, Managing Director at Panattoni.

The expansion 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 logistics in the e-commerce area and is another step towards the development of multi-channel sales. The launch of the new warehouse in the global LPP Logistics Fulfillment Centers network took into account growing and dynamically changing market requirements.

– Due to the growth of e-commerce sales and the development of the omnichannel network, there was a demand for additional warehouse space, which will allow for faster availability of goods in the online store, as well as more efficient customer service. Therefore, we are pleased that we have successfully completed all operational work related to the construction of the facility in Pruszcz Gdański. All the more so because this is the first warehouse that 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 sqm, with a separate office section, for which over 2,000 sqm has been allocated. A major advantage of the warehouse is its comprehensiveness. It is adapted for the simultaneous handling of shipments and returns. This is due to its unusual two-part construction, which consists of a returns hall launched in July of last year, occupying 12,000 sqm, and a new shipping hall connected directly to it with an area of 49,000 sqm. The warehouse is equipped with an automatic conveyor line 400 m long, which is connected to a cross-belt shipping sorter, enabling fast and accurate grouping and transport of ready-made packages. Efficient operation is also supported by high-performance flow connectors, separators, and an advanced vision system for scanning shipping labels. The whole is managed by a WMS system fully integrated with a module using artificial intelligence algorithms to shorten picking paths. Thanks to modern solutions in the field of warehouse automation, the launched Fulfillment Center provides the possibility of storing as many as 6 million pieces of products and daily handling of up to 100,000 orders and the same number of returns.

– Warehouse automation brings many benefits and allows for faster order fulfillment, increased operational capacity, better use of space, and a significant reduction in the risk of errors. Implementing modern technologies based on artificial intelligence enables the optimization of operations, which in turn increases warehouse efficiency, which translates into the efficiency of customer order fulfillment – emphasizes Sebastian Sołtys, Vice President of LPP Logistics.

During the implementation of the Panattoni Park Tricity South II project, special attention was paid to solutions in the area of so-called sustainable construction. The facility, which is currently in the process of BREEAM certification at the Excellent level, was designed and equipped with, among others, BMS technology allowing for the reduction of operating costs and limiting the negative impact of the facility on the environment. The system automatically controls electricity, lighting, ventilation, and heating, and also limits water consumption.

In the area surrounding the facility, which will eventually generate up to 2,000 new jobs, green areas and flower meadows have also been planned. Communication facilities for employees have also been implemented, including, among others, the modification of bus routes.

The new Fulfillment Center in Pruszcz Gdański, in accordance with the announcements of LPP Logistics, is one of the elements of the dynamic development of the logistics network of the operator currently managing warehouse infrastructure with an area of nearly 400,000 sqm. The opening of subsequent facilities is coming soon.