New LPP e-commerce warehouse near Rzeszów
Another LPP Fulfillment Center will be built in the Podkarpacie region. The 69,000 m2 facility will feature state-of-the-art IT systems and an automatic conveyor line in the packaging area, which will streamline online order processing and improve the operational efficiency of the Polish clothing manufacturer. The new warehouse will allow for increased assortment availability and efficient customer service, as well as provide a synergy of excellent warehouse conditions and modern technological solutions, while respecting the principles of sustainable development. The building, designed in accordance with BREEAM certification, will be commissioned in the third quarter of 2022.
At the beginning of November 2021, LPP signed a contract with Panattoni concerning the lease of warehouse space in the Rzeszów region. The facility, whose construction is expected to be completed in September 2022, will include a 67,000 m2 warehouse and office space of 2,000 m2. The chosen location is in tune with the development strategy of LPP’s logistics network, which will enable more efficient servicing of neighbouring markets such as Ukraine, Hungary, the Czech Republic, Germany, Slovakia, and – at the time of high demand – partly also Poland. The Rzeszów region was also chosen due to its convenient location near the A4 East-West motorway junction, as well as proximity to national road 19, leading to Slovakia. The Polish clothing manufacturer plans to open the facility in the third quarter of 2022.
– Podkarpackie is a region known for its high level of engineering. With LPP’s rapidly expanding R&D needs in IT, as well as logistics automation and e-commerce, choosing the Rzeszów region therefore seems to be an excellent option. The decision to open a new facility is also a response to the constantly growing demand for our brands’ products. Despite the actions taken recently to improve our logistics network, such as expanding the Fulfillment Center in Romania or separating the return warehouse and starting the construction of a new facility in Pruszcz Gdański, we still see potential for development in this area – comments Sebastian Sołtys, Logistics Director, LPP.
The additional warehouse space will enable LPP to process up to 100 thousand orders daily and store over 7 million items. In the area with specially adapted IT systems, innovative operations will be introduced to consolidate goods from stationary stores and the warehouse. This solution will allow the priority combination of products from the stores needed to fulfil the order placed by the customer. An automatic conveyor line in the packing area, covering an area of almost 5,000 m2, connected to a dispatch sorter, which enables several thousand parcels per hour to be sorted into different regions simultaneously, will also help to increase productivity.
– The decision to include the new facility in our global distribution network is dictated by the need to provide faster service to our customers and to continuously improve the customer experience. Ensuring customer satisfaction also means increasing challenges for us from the perspective of delivery logistics. Order picking for our stores is fundamentally different from that for individual customers ordering online. When selling in an omnichannel model, our priority is therefore to ensure that customers can transition freely between the two sales channels and choose any form of delivery and return. In this respect, efficient logistics seems to be invaluable – emphasises Sebastian Sołtys.
The new Fulfillment Center is a high-standard project, implemented with the comfort of future users in mind. – By meeting all the most important criteria for BREEAM certification at the Excellent level, the new warehouse will become an example of a responsible and sustainable approach to design – emphasises Kamil Kawałek, Logistics Network Development Manager, LPP. The building will feature twilight sensors for external lighting and smart energy management systems with remote reading capabilities. Solutions such as white fittings and sanitary fixtures equipped with a water-reduction mode will allow for economical use of resources. The green space surrounding the investment has also been arranged. Trees, shrubs and flower meadows that do not require mowing have been planted, as well as houses for invertebrates, insects and birds, which will ensure the ecosystemic diversity of the space around the facility. In addition, an electric car charging station and bike shelters equipped with electric sockets and repair kits will be available for warehouse users.
LPP has been developing its global supply and distribution network for years. The Fulfillment Center near Rzeszów is the next step in the development of the company’s multi-channel sales, whose total warehouse space after the completion of the ongoing investments will already exceed 500,000 m2.
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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 on 26 stationary markets, including in such prestigious capitals as London, Helsinki, Tel Aviv or Moscow. The online offer is available on 31 markets. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 2000 stores with the total area of over 1.7 million sq.m. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs 27 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.