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Published:

07.09.2022

Panattoni and LPP Logistics open the largest Fulfillment Center warehouse in LPP Group distribution network

On September 6th, this year, a new Fulfillment Center in Pruszcz Gdański was officially opened, which will ultimately generate up to 2,000 new jobs in Pomerania.

Published:

07.09.2022

LPP Otwarcie

On September 6th, this year, a new Fulfillment Center in Pruszcz Gdański was officially opened, which will ultimately generate up to 2,000 new jobs in Pomerania. The facility, delivered by Panattoni - the European industrial real estate market leader - will be dedicated to e-commerce services and is currently the largest warehouse of its kind in the LPP Group's distribution network. With a total area of 64,000 sqm, it will accommodate up to 6 million garments and accessories, and thanks to the use of modern technology 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 LPP Group's customers in Poland, Germany, Ukraine, the Baltic States, Italy and Spain. The Fulfillment Center in Pruszcz Gdański is the first facility to be opened under the auspices of the logistics operator, LPP Logistics.

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

- Thanks to the location of a new facility near the LPP Logistics Distribution Center in Pruszcz Gdański, which handles deliveries to the Fulfillment Centers network, in addition to supplying the LPP Group's stores, we are able to ensure the flow of goods in the distribution chain, and at the same time execute on the concept of logistics network development in accordance with LPP's omnichannel strategy," says Jacek Kujawa, CEO of LPP Logistics.

The newly opened investment was developed by Panattoni, the European industrial real estate market leader, which has already completed nearly 17 million sqm in Europe, of which more than 11 million in Poland. For the LPP Group, the developer previously delivered 30,000 sqm within Panattoni Park Gdańsk III, and will also complete nearly 70,000 sqm within Panattoni Park Rzeszów North in early 2023.

- The fact that we will achieve in the coming months more than 170 thousand sqm within the portfolio of developments for the LPP Group, confirms our 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 company. Once again, our experience in realizations for e-commerce is also paying off. More than 30 percent of all industrial facilities in Poland serve online sales, and the experience of companies like Panattoni is attracting 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 a 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 e-commerce logistics and is another step towards the development of multi-channel sales. The launch of the new warehouse in LPP Logistics' global network of Fulfillment Centers took into account the growing and dynamically changing market requirements.

- Due to the growth of e-commerce sales and the development of omnichannel networks, there was a need for additional warehouse space to allow faster availability of goods in the online store, as well as more efficient customer service. Therefore, we are pleased to have successfully completed all operational work related to the construction of the facility in Pruszcz Gdański. Especially since this is the first warehouse, we are opening as a logistics operator managing the supply and distribution network of the LPP Group," says Sebastian Soltys, vice president of LPP Logistics.

The new facility covers a total of 64,000 sqm, with a separate office area, for which more than 2,000 sqm has been allocated. A great advantage of the warehouse is its comprehensiveness. This is because it is adapted for simultaneous handling of shipments and returns. This is due to its unusual two-part construction, which consists of a returns hall launched last July, occupying 12 thousand sqm, and a new shipping hall directly connected to it, with an area of 49 thousand sqm. The warehouse is equipped with a 400-meter-long automatic conveyor line, which is connected to a cross-belt shipping sorter, enabling fast and accurate grouping and transportation of finished packages. Efficient handling is also supported by high-performance flow connectors, separators and an advanced vision system for scanning shipping labels. The entire system is managed by a WMS fully integrated with a module that uses artificial intelligence algorithms to shorten picking paths. Thanks to state-of-the-art warehouse automation solutions, the launched Fulfillment Center has the capacity to store as many as 6 million items and handle up to 100,000 orders and as many returns per day.

- Warehouse automation brings many benefits and allows for faster order processing, increased operational capacity, better space utilization and a significant reduction in the risk of mistakes. The implementation of modern technologies based on artificial intelligence makes it possible to optimize operations, which, in turn, increase warehouse efficiency, which translates into the efficiency of handling customer orders - emphasizes Sebastian Soltys, vice president of LPP Logistics.

While implementing the Panattoni Park Tricity South II project, Panattoni paid special attention to solutions from 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 other things, BMS technology allowing to reduce operating costs and limit the negative impact of the facility on the environment. The system automatically controls electricity, lighting, ventilation and heating, and reduces water consumption.

Green areas and flower meadows cover the area surrounding the facility. The developer planned also transportation facilities for employees (up to 2,000 new jobs), including among other things modifying bus routes.

The new Fulfillment Center in Pruszcz Gdanski, as announced by LPP Logistics, is one of the elements of the dynamic development of the logistics network of the operator currently managing a warehouse infrastructure of nearly 400 000sqm. The opening of more facilities is imminent.

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