Poland – The Strategic Gem at the Heart of EU Fulfilment

Three years ago we opened our first ILG warehouse in Wroclaw, and now we have just opened another 450,000 sq. ft facility (shared with our parent company Yusen Logistics), featuring impeccable environmental credentials.

So why are we putting our faith in Poland?

In this article we’ll address some of the misconceptions about Poland as an EU logistics hub and highlight the benefits of keeping stock there for sales on the Continent.

Is the EU market worth the bother?

Europe contains some of the world’s most lucrative markets for beauty, fashion, wellbeing, electronics and homeware. According to Eurostat, in the 10 years to 2023 the proportion of internet users in the EU who used e-commerce platforms to buy products online rose from 55% to 75%. By 2026 the value of the EU e-commerce market is forecast to have surpassed $1.1 trillion.

While there are logistical and administrative hurdles to get over, an experienced 3PL can smooth out the paperwork and manage your distribution for a seamless expansion into the EU market.

Is Poland a good base to access the EU market?

We began our investigations into EU logistics several years ago, in anticipation of the Brexit deal. When the deal was announced, it left a lot of UK brands hit with double duty payments and customs delays, and eager to find warehouse space within the EU. By then we had conducted extensive research to decide the optimum location for our EU fulfilment centre and were open and ready to onboard customers. Our site selection criteria were:

• Fast transport links to population centres across mainland Europe
• Access to a very flexible resource pool at reasonable cost
• Proximity to Germany – the largest e-commerce market in the EU
• Competitive operational costs
• Availability of skills and experience
• Strong employee relations

The location we settled on could not have been more ideal. Wroclaw, in western Poland, is 85km from the German border, with easy access to Leipzig, where many carrier hubs are based. This enables us to access more time and cost-efficient carrier routes, keeping prices down and meeting end customer expectations on delivery times.

Poland is also where rail imports from China terminate. Our parent company, Yusen Logistics, which has broad experience of the EU logistics landscape, already had a facility on the same estate, so we were able to get up and running quickly and to pass on that experience to our customers.

Will I get the same level of service as I do in the UK?

Whenever a business expands into new territory, it’s reasonable to question whether standards can be maintained. In setting up our warehouses in Wroclaw, we were adamant that these new facilities would offer the recognised ILG customer experience, with all our brand values.

That means quality control and security are paramount and we manage our EU logistics and order fulfilment to exactly the same criteria as in the UK. Customer service too meets the same customer-centric and personalised standards for which we won the  UKWA Excellence in Customer Service Award 2023. All customer service personnel are based across the UK and Poland, English speaking as well as bilingual Polish speaking, to handle your calls and enquiries whenever you need them.

What about the red tape, like customs, VAT and product regulation?

Freight and customs clearance became a major issue in the years leading up to the Brexit deal and the negative publicity it attracted still resonates. Thanks to the shipping power of our parent company, Yusen Logistics, we are able to offer our customers total support and guidance in handling the passage of goods across borders.

For regulated goods, such as supplements and wellbeing products, and other regulatory compliance matters, we can guide you through the paperwork and draw on the knowledge of trusted partners to navigate local regulations, as well as import/export regulations on goods manufactured outside the EU.

There is a VAT requirement in Poland, which is why we’ve partnered with SimplyVAT to offer expert guidance and solutions to prevent it becoming a stumbling block. From registration and invoice requirements to filing VAT returns and efficiently reclaiming your tax, we’ll help you cut through the red tape in local language and take care of every aspect of your VAT and other compliance needs.

Will I have to double my investment in stock?

Keeping a second stock in Europe inevitably means increasing your overall stock holding, which can pose a risk. With our stock management services, however, we can help to optimise fluidity between warehouses to make sure you maintain suitable product availability to meet demand, wherever that may be.

Will I be vulnerable to fluctuations in exchange rates?

Fluctuations in exchange rates can be an unsettling factor when exporting to overseas markets. We mitigate this by quoting for our services and the costs for shipping in euros, so you can budget without having to take exchange rates into account.

Will operating from Poland support my Sustainability Strategy?

With so many brands looking to their supply chains to be environmentally responsible, 3PLs are stepping up their sustainability credentials. Our brand-new Polish Fulfilment Centre sits at the heart of our drive to be a net-zero business by 2030 and offers our customers 450,000sq. ft of highly sustainable fulfilment space. Rated BREEAM ‘Outstanding’ and incorporating solar power, rainwater harvesting and EV charging, this state-of-the-art facility provides convenient, cost-effective order fulfilment for EU-based end customers and aligns with your sustainability goals.

The centre of your EU logistics strategy

We recognise that there are many considerations to address before making a move into the EU market, particularly for brands that pride themselves on service and product quality. Will a fulfilment facility abroad be guaranteed to meet those high standards? Will the red tape be a hindrance? Will the market provide a sufficient return on the increased investment?

Hopefully we have addressed these and other questions in this article. With our facilities in Poland, we can offer clients a seamless entry into the European market.  Poland enables us to provide a truly dynamic and cost-efficient 3PL service, with state-of-the-art, sustainable facilities and the standard of service and delivery associated with ILG in the UK, all backed up with support from an award-winning customer service team.

Europe beckons! And we’re here to help.

If you would like to know more about our European fulfilment services, please get in touch