LPP Logistics has launched its largest e-commerce warehouse in the Bydgoszcz district
Due to the growing importance of the e-commerce channel in the sales network of the Polish clothing manufacturer, LPP Logistics has decided to launch a new warehouse to handle online orders. The facility, located in the municipality of Białe Błota in the Bydgoszcz district, with an area exceeding 100,000 m2, is already the fifth and largest fulfillment centre in the LPP Logistics network, which will boost the company’s operational capacity and streamline the delivery of orders in Poland and Central Europe. The first shipments to customers were sent at the beginning of July. Their efficient fulfilment is already supported by artificial intelligence algorithms, and the implementation of third-generation automated solutions is planned over the coming months.
LPP Logistics’ new fulfilment centre is located in the municipality of Białe Błota in the Bydgoszcz district, in close proximity to expressways and motorways. Its convenient location in relation to LPP Logistics’ distribution centres, responsible for supplying e-commerce warehouses, is also of key importance for the LPP Group’s efficient logistics operations. The warehouse hall covers an area of 100,000 m2 with the capacity to store up to 16 million items of clothing and accessories. Another 3,000 m2 is designated as social and office space. The facility was already stocked in June this year and the first orders started to be fulfilled at the beginning of July.
– The launch of the new fulfilment centre in the Bydgoszcz district is a response to business needs and the apparent potential for growth in online sales. This location is of strategic importance to us from a geographical perspective, but also because the facility fits our needs to support the Group’s growth. In the first quarter of this year alone, LPP’s e-commerce sales increased by 23% YoY and have remained a source of stable revenue for a long time. Previously, the unpredictability of the market and the diversity of e-commerce dynamics were not conducive to significant investments in cost-intensive technologies in logistics, but today’s market is already much more stable and encourages us to increase spending in this area. As the logistics operator of the LPP Group, we are therefore adapting our operational capabilities to enable the LPP brands to handle the growing number of orders efficiently. This is why we have opted for the latest third-generation warehouse automation standard, which will increase the efficiency of this fulfilment centre starting already in autumn – comments Sebastian Sołtys, president of the management board of LPP Logistics.
In the new warehouse facility, the company relies, among other things, on artificial intelligence support. The AI algorithms applied are used to manage goods in real time or optimise the shipment process, facilitating the work of order pickers. The system independently categorises them, taking into account parameters such as specific lead times or courier collection times, which reduces the need to move around the warehouse and optimises picking time. A significant impact on faster deliveries to customers is also exerted by the use of a shipping sorter, which, by automating the dispatch process and distributing orders among specific carriers, is capable of handling up to 13 thousand parcels per hour.
– The new warehouse near Bydgoszcz will enable the handling of order volumes of up to 500,000 items per day. The use of state-of-the-art automation solutions will have a significant impact on maximising this performance. Our starting point is the Goods to Person model based on close cooperation between the automation used and the employee. The solutions we are planning will reduce the need to move around the warehouse, as in the case of the so-called shelf system, where an employee manually retrieves items from different locations in the warehouse. By optimising this process with robots that deliver the products directly to the employee, we will definitely shorten the order processing time and increase the comfort of work – comments Daniel Potoczniak, director of e-commerce logistics at LPP Logistics.
Over the next few months, the company plans to implement further robotics and automation solutions in stages. One of the key elements will be the Picking Engine system, which delivers the right items in containers to the workstation operator and reduces the need to move around the warehouse. Also supporting the order picking process will be autonomous mobile robots (AMR) and autonomous case-handling mobile robots (ACR), which can move without additional external infrastructure. On the other hand, the implementation of innovative sorters, which will separate individual items into individual orders, is planned for the fourth quarter of this year.
Despite the high degree of automation in the facility, up to 2,000 employees will be employed. Working conditions in the warehouse will be significantly influenced not only by the automated solutions, but also by the highest standards of sustainable construction, in accordance with the requirements of the BREEAM Excellent certification. Energy-efficient LED lighting, heat pumps and a 50kWp photovoltaic installation have been used to reduce environmental impact. With employees in mind, parking spaces for cars and bus stops for employee transport have been located on the site.
The new fulfilment centre is already the 9th warehouse facility in the network managed by LPP Logistics, which currently amounts to nearly 600,000 m2. It is responsible for fulfilling e-commerce orders, supporting the other four warehouses of this type operating in Pruszcz Gdański, Jasionka near Rzeszów, as well as in Slovakia and Romania. In addition to these, there are also distribution centres in Gdańsk, Pruszcz Gdański, Brześć Kujawski and Romania. The new investment in Bydgoszcz is part of LPP Group’s plans to develop sales in Poland and abroad. By the end of 2025, LPP Logistics expects spending on development amounting to PLN 450 million, and its warehouse space will have increased to 700,000 m2 by that time.
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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 600,000 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 Europe. For 30 years, it has been successfully designing and selling the collections and accessories in Poland and abroad. LPP manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay, whose offer is available today in stationary and online stores in 40 markets worldwide. The company has a chain of nearly 2400 stores with the total area of over 2 million m2 and distributes the products to 3 continents every year. LPP also plays an important role as it provides employment to 43 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.