LPP Logistics expands operations by setting up companies in Romania and Slovakia
LPP Logistics is strengthening its position in Southern and Central Europe by appointing two companies – LPP Logistics Romania s.r.l. and LPP Logistics Slovakia s.r.o. Both entities will allow the Polish logistics operator to expand its operations outside Poland, as well as standardise the quality of service in the facilities it administers and optimise their costs. At the same time, the company has taken full control of operations at the Fulfillment Centre in Slovakia, which is another step in the implementation of the insourcing strategy and the strengthening of LPP Logistics’ position as an independent operator.
At the end of April, LPP Logistics established two companies responsible for providing logistics services in the markets of Southern and Central Europe. The strengthening of the foreign supply and distribution network structure is a response to the increased importance of this region in the development of the LPP Group, as well as the need to optimise logistics processes carried out by LPP Logistics in these markets.
– The dynamic expansion of physical stores, growing volumes of online orders, as well as the LPP Group’s development plans for the years to come, encourage us to fully utilise our logistics potential and boost the efficiency of our operations in the Southern and Central European region. This entails more effective use of the regional distribution infrastructure and its strategic expansion. The establishment of LPP Logistics Slovakia s.r.o and LPP Logistics Romania s.r.l allows for the best possible adaptation of the company’s structures and optimization of the processes taking place to the needs of the local markets. In Slovakia, we have taken over the direct management of the Fulfillment Centre in Sered, taking full control of the e-commerce logistics operations from an external partner. The new company in Romania, on the other hand, is the first step towards completely independent handling of all the processes taking place in our first foreign distribution centre, scheduled to open in the fourth quarter of this year – says Sebastian Sołtys, vice-president of LPP Logistics.
Since August 2022, LPP Logistics has been responsible for the logistics operations of the LPP Group in Poland and currently directly manages the operation of five domestic facilities with a total area of nearly 340,000 m2, while improving the cost efficiency of domestic processes. By the end of the year, the Gdańsk-based company will have 140 thousand m2 of warehouse space abroad.
– Through the establishment of the company in Romania, which will manage the 65 thousand m2 distribution centre under construction there, we will strengthen our position as an independent operator with full control of the facility’s logistics operations, customs clearance, transport of containers from the port of Constanta, and organisation of road transport – adds Sebastian Sołtys.
An important element in preparation for the independent handling of e-commerce logistics processes in Slovakia is the company’s cooperation with the existing operator, Quehenberger Logistics GmbH, as well as the mutual improvement of competences in, for example, warehouse logistics or customer service. The currently implemented strategy of logistics operations insourcing will enable the Polish company to unify processes in the Slovak Fulfillment Centre in relation to the entire distribution network, introduce improvements reducing operating costs and implement consistent service quality standards in all markets where LPP Logistics operates.
– The independent implementation of logistics operations will allow us to reach the maximum capacity ceiling within the warehouse space we already have. We currently handle approximately 2 million orders per week across the Fulfillment Centres network. Thanks to the optimisation of processes by an advanced and consistently operating technological infrastructure, we expect to increase our handling capacity and thus gradually increase the volume of online orders – says Daniel Potoczniak, director of e-commerce logistics, LPP Logistics.
LPP Logistics’ global supply and distribution network operates as a system of vessels connected by a single Warehouse Management System (WMS) tool, which allows for the integration of logistics processes and the automation and distribution of orders across nearly 40 markets. The tailor-made solution for the Gdańsk-based company provides an option to expand the system by additional warehouse-specific modules. At the Slovakian Fulfillment Centre in Sered, the WMS is integrated with a modern Pocket Sorter adapted for efficient and automatic handling of multi-item orders. It is complemented by the so-called Shipping Sorter which automates and speeds up the parcel dispatch process. To ensure a swift delivery of orders to the customers, the company also uses its own proprietary solutions. One of these is the LOTS (LPP Order Tracking System) tool for precise, real-time order tracking, which helps optimise the speed of parcel handling.
– The common denominator for the introduction of all solutions is to ensure the highest possible quality of service and customer satisfaction. We are developing our network based on an omnichannel strategy, so in our operations we consistently seek synergies in brand allocation and skilful inventory management between different warehouse facilities and sales channels. This, in turn, means that we can provide customers with both better availability of our product range and optimal delivery times for their orders – comments Daniel Potoczniak.
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LPP Logistics is a logistics operator managing LPP Group’s procurement and distribution network comprising distribution centres and Fulfillment Centres with a total area of over 400,000 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 and 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 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 nearly 2000 stores with the total area of 1.6 million m2 and distributes clothing and accessories to 3 continents every year. LPP also plays an important role as it employs nearly 30 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.