The first foreign Distribution Center of LPP Logistics has started its operations in Romania
LPP Logistics opened its first foreign Distribution Center in Romania just one year after its construction had been launched. The warehouse will strengthen the Group’s distribution network in Southern Europe, supplying LPP brand stores and the Romanian Fulfillment Center dedicated to handling online orders in the region. The center is the second warehouse facility managed by a Polish operator in this market and the eighth in the entire supply network, currently amounting to nearly 0.5 million square metres. The designed automation solutions will enable LPP Logistics to operate 450 stores at the same time and ship up to 6 million pieces of assortment per week to the Romanian, Bulgarian, Hungarian, Croatian, Macedonian, Serbian or Greek markets.
The new Distribution Center, located in CTPark Bucharest West, near Bucharest, in the municipality of Bolintin-Deal, is the second warehouse facility managed by the Gdańsk-based company in Romania and the eighth in the Group’s entire portfolio. Currently, LPP Logistics’ total warehouse space is close to 0.5 million square metres. The construction of the center was launched in January 2023, while at the beginning of December the company commenced the stocking of the facility and the first start-up logistics operations. The new warehouse is dedicated to supplying a cluster of southern markets – Romanian, Bulgarian, Hungarian, Croatian, Serbian and Greek as well as North Macedonia.
– The location of the distribution center in Southern Europe was determined by the so-called center of gravity in relation to the distance of the Group’s network of stationary stores. At the end of the fourth quarter of the financial year 2023/24, the portfolio of LPP brands in this region will already include more than 500 stores, while the company intends to continue its expansion, among others in Romania or Greece, in the coming years. The logistical support of deliveries to such an expanded sales network is therefore crucial for the implementation of the Group’s business strategy – indicates Sebastian Soltys, the President of LPP Logistics.
The warehouse is also intended to support deliveries to the Romanian Fulfillment Center and to act as a cross dock hub for part of the deliveries from Poland. Due to its strategic location, the warehouse offers a possibility to diversify maritime transport through the Black Sea port of Constanta, as well as provides excellent security for an alternative supply route to the Ukrainian market. Utilising the infrastructure of Romania’s largest port also allows the Group to receive orders directly from Asian suppliers.
– Launching of our first overseas distribution center is a turning point in the operation of our supply chain model. Until now, all LPP clothing brand stores were supplied from Poland, and domestic ports were the main place to receive orders from suppliers. From now on, by using the potential of the port of Constanta, we also optimise routes and transport times for goods from Asia. This means a shortening of the so-called “last mile” for stores from Southern Europe and, consequently, a better speed of delivery and reduction of transport costs, the President of LPP Logistics emphasises.
The new distribution model also involves changes in formal terms, operating processes and cooperation mechanisms with external partners participating in shipment handling. The Supply Chain Management teams of LPP Logistics, responsible for import delivery, distribution and customs clearance, were involved in its preparation and ensured that all processes were adapted to the customs requirements of the Romanian market.
Due to the interdisciplinary nature of the project, it was necessary to integrate the entire range of specialist competence. The team responsible for the project consisted of experts in the field of process engineering and automation, designing new cross-system solutions, defining the next points in the supply chain and distribution area or organising the operational structure. Currently, the Polish project team, together with the local operational team, is launching further processes and gradually increasing the warehouse capacity in line with the implementation schedule.
– The Distribution Center in Romania was built on the basis of a warehouse concept developed and standardised by us. According to this concept, the facility was commissioned as soon as it had achieved the necessary basic functionality. In December, shortly after the acceptance of the building, we started process and system tests and the initial start-up of the warehouse with its first regular stocking. Within just two days of accepting the delivery to the warehouse, we had sorted and dispatched the first batch of supplies to the stores. Since January, we have already been providing regular shipments to the sales network and supporting the supply of our Fulfillment Center in Romania, Michał Moteka, Logistics Process and Automation Development Manager, LPP Logistics informs.
The 65,000 square metre facility has a capacity of 45,000 pallet spaces with a storage capacity of up to 720,000 cardboard boxes. Due to the designed optimal process solutions and modern warehouse equipment, its target capacity will allow for the shipment of up to 6 million pcs of assortment per week.
The operation of the Distribution Center in Romania will be supported by a 140 m long automatic sorter. The technology, which has already been successful in the previous Distribution Center project in Brześć Kujawski, will increase the efficiency of sorting goods several times, allowing as many as 450 traditional stores be served at the same time. In the acceptance and dispatch area, a 1.2 km long line of automatic conveyors was designed, integrated with label applicators or volumetric gates. Solutions were also included to speed up the vehicle loading process by equipping the dispatch gates with telescopic conveyors. Supporting the warehouse operation is also provided by a fleet of approximately 40 multifunctional forklift trucks. The support of the warehouse operation is also provided by a fleet of approximately 40 multifunctional forklift trucks. All the solutions used in the facility are designed to ensure not only the high operational efficiency of the warehouse, but also to support the work of the team.
– Maintaining a balance between technological progress and innovation, on the one hand and standardisation and reproducibility of solutions on the other, allows us to accelerate the pace of implementing and commissioning subsequent warehouses, Anna Goćwin, Programme Manager, LPP Logistics comments.
Ultimately, the new facility will employ nearly 300 people of various specialisations. The company focuses not only on a modern and friendly workplace, but also on training the local team in logistics standards and good practice. Care has also been taken to provide commuting facilities – 2 bays are planned for public transport, with a possibility to launch bus lines dedicated to employees. Seven chargers for electric cars have also been prepared in the company car park.
The construction, carried out for the Polish logistics operator by the developer, CTP Romania, took less than a year, becoming now part of CTPark Bucharest West, the largest industrial park in Central and Eastern Europe (CEE).
– “Our partnership with LPP illustrates the CTP capabilities to host regional distribution centers in our major parks such as CTPark Bucharest West and swiftly adapt to our clients’ specific needs. The CTP team’s expertise ensures a thorough analysis and precise implementation of technical details, guaranteeing an exceptional result delivered. This includes constructing a building that aligns with the latest and highest sustainability standards in less than one year”, says Andrei Bentea, Senior Business Developer at CTP Romania.
The facility has been designed taking into account ISO14001 certification standards for construction and property management as well as sustainable building principles. The Distribution Center is currently in the process of BREEAM certification. The facility is powered by renewable energy sources, with 10,000 square metres of solar panels of a total capacity of 2 MW installed on the roof. The power supply from the photovoltaic installation will cover 30 percent of the energy needs of the facility.
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LPP Logistics is a logistics operator managing the supply and distribution network of the LPP Group, comprising distribution centers and Fulfillment Centers with a total area of almost 0.5 million square metres. It operates on three 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 company, one of the most dynamically developing in the clothing industry in the Central European region. It has been successfully operating in Poland and abroad for 30 years, selling collections in such prestigious capitals as London, Helsinki and Tel Aviv. LPP manages 5 fashion brands: Reserved, Cropp, House, Mohito and Sinsay, whose offer is available today in traditional and online sales in almost 40 markets worldwide. The company has a network of over 2,000 stores with a total area of 1.9 million m2 and distributes clothing and accessories to 3 continents every year. LPP also plays an important role, providing jobs for nearly 30,000 people in offices and sales structures in Poland, countries in Europe, Asia and Africa. The company is listed on the Warsaw Stock Exchange as part of the WIG20 index and belongs to the prestigious MSCI Poland index.