European discount retailer Pepco is counting on long-term freight contracts and a new Polish distribution hub to soften the blow from higher shipping costs and mounting supply chain disruptions.
Rising transportation costs, changes in shipping routes, and disruptions on global shipping routes are increasingly complicating retail operations. Pepco aims to better secure its supply chain and mitigate the impact of these disruptions through a major logistics investment in Poland.
Pepco wants to streamline its delivery process—currently, only 35% of shipments arrive on time, and transportation costs are rising, Reuters reports. A massive investment in Poland could offer a chance to alleviate these problems.