LPP Logistics opens its first foreign distribution center in CTPark Bucharest West

LPP Logistics started operating its first foreign distribution centre in Romania. The warehouse will strengthen the Group’s distribution network in Southern Europe, supplying LPP’s branded stores and the Fulfillment Centre in Romania dedicated to handling online orders in the region. CTP, Europe’s largest listed developer, owner, and manager of industrial and logistics properties by gross lettable area (GLA), has delivered the distribution center of LPP Logistics in Romania in less than one year after the start of construction.

The centre is the second warehouse managed by the Polish operator in this market and the eighth in the entire supply network, which currently totals almost 0.5 million square metres. The designed automation solutions will allow LPP Logistics to operate 450 stores at the same time and ship up to 6 million items per week to markets in Romania, Bulgaria, Hungary, Croatia, Macedonia, Serbia or Greece.

The construction of the new distribution center by CTP’s in-house construction team began in January 2023, before the LPP team commenced the stocking of the facility and the first start-up logistics operations at the beginning of December. Located in CTPark Bucharest West, the largest industrial park in Central and Eastern Europe (CEE), the 65,000 sqm warehouse will strengthen LPP’s distribution network in Southern Europe.

“Our partnership with LPP illustrates CTP’s capabilities to host regional distribution centers in our major parks such as CTPark Bucharest West and swiftly adapt to our clients’ specific needs. Our 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.

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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 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 LPP 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,” underlines the President of LPP Logistics.

The new facility will employ nearly 300 people of various specialisations, due to CTPark Bucharest West being appreciated as the industrial park with the best quality of life in Romania. LPP 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 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 facility has been designed to take 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 building will be equipped with renewable energy sources, with 10,000 square metres of photovoltaic panels of a total capacity of 2 MW installed on the roof. Around 30% of the power supplied from the photovoltaic installation will be directed to the energy needs of the LPP facility.

CTPark Bucharest West spans an area of approx. 830,000 sqm and includes the unique Clubhaus community centre, offering a high-quality working environment for its tenants and over 2,500 employees. Clubhaus offers facilities such as a restaurant, coffee shop, medical services, leisure & entertainment areas, green space and bicycle paths, serving as a community hub for neighbouring districts. A supermarket and sports ground are planned for future expansion phases while the bicycle paths will be extended.

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.