In the US market, distribution centers are popping up everywhere. The company Epcido, which has roots in Herning, specializes in installing automated storage and sorting systems. Now, they are taking over the United States - and the world's largest supermarket chain, Walmart, is among the customers.
The distribution centers are the logistical hub, where everything is connected and runs at a high pace as thousands of goods have to be packed and sent to customers every day. E-commerce in the US market is skyrocketing, and this trend continues. According to studies by Statista, revenue from e-commerce retailing in the United States was estimated to be around 905 billion US dollars in 2022. The studies predict that the revenue from online shopping in the United States will exceed 1.7 trillion dollars in 2027.
Flemming Lorentzen, Mathan Apputhurai, and Pawel Rosiak are the founders of the Danish-Polish company Epcido. Back in 2016, they saw the possibilities in a market with billion-dollar investments and huge warehouses equipped with automated sorting systems, warehouse robots, and picking and packing stations. After just six years, they have managed to build a solid business by installing, commissioning, and maintaining complex automated systems for, among other things, e-commerce centers.
Next stop: USA
Epcido has already taken over Europe with the main focus on Scandinavia and the Benelux countries. Last year, Epcido became part of the technology group Eltronic Group, and this has meant, that the company can think even bigger. Now it is the American market is within reach.
Epcido has a sales office in Herning, offices in Gdansk and Stettin in Poland, while they have also expanded with branches in Norway, England, and most recently the USA. They employ more than 250 employees on projects around the world.
We have been on an explosive journey the last few years. We have built up a certain amount of experience, we have well-developed processes and we have skilled employees. Our focus right now is to consolidate the business in the US. Most recently, we have established an office in Gainesville, Florida, where we have hired several people to help strengthen our project organization. We have also completed the first projects in the USA for large American companies - and now we have contracts for two new, large projects, which we have gradually started.
Flemming Lorentzen, CEO
Walmart is building fully automated warehouses throughout the United States
As a subcontractor to the Austrian warehouse automation company, Knapp, Epcido is installing and commissioning distribution centers that are one kilometer long and 250 meters wide. The end customer is one of the heaviest players – it is American Walmart, the world’s largest supermarket chain.
Last year, the chain launched a comprehensive strategy to meet Americans’ changing habits and demands for the e-commerce market.
Walmart must build 25 so-called "fulfillment centers", which will house and distribute goods to consumers. We will help build some of the first centers to be located in Indianapolis, Indiana, and Dallas, Texas. In the distribution centers, everything must take place automatically, and there will only be employees to monitor the process. It is quite unique. All of the equipment is fully automated, which means that all processes must be handled automatically. First, goods - everything from mountain bikes to washing-up liquid - from all over the world must be delivered and stored in racking systems. When an order comes in, the items must be found on the correct shelves, packed and equipped with shipping information, and finally, the items must be shipped. All without any person has actually touched the goods.
Flemming Lorentzen, CEO
Well received – despite challenges along the way
Epcido is excited to have broken into the American market, but not everything has gone quite as planned.
Despite the fact that we are doing really well, it is not entirely easy to enter a new market. You have to respect and understand that it is a different culture and a different labor market. We have had to learn that. At the same time, like many others, we have had challenges in obtaining materials due to the world situation. But we have already been well received by our clients, who see the value in our approach to executing projects. That is positive - and we look forward to starting even more projects in the USA.
Flemming Lorentzen, CEO
According to Flemming Lorentzen, Epcido has high but realistic, ambitions to reach a three-digit amount in revenue (DKK) by the end of the financial year.
About Epcido
Epcido A/S is a Danish-Polish company with a sales department in Denmark and two locations in Poland. Since 2016, Epcido has carried out projects installing large automated systems of distribution centers for customers in both Europe and the USA.
Epcido specializes in the installation, service, and commissioning of logistics centers, logistics solutions for hospitals, baggage handling systems at airports, and car factories’ production lines.
On a project basis, Epcido’s technicians and project managers build complex fully automated storage systems.
Epcido is part of the Danish technology group Eltronic Group.