NETHERLANDS ‘IDEAL LOCATION’ FOR EUROPEAN DISTRIBUTION

Logistics Insight Asia, 1/1/2010

The Netherlands remains an ideal location for European distribution from a cost and quality perspective, and is also a good location for a green supply chain.That is the conclusion of a benchmark study, High Quality, Competitive Costs, Benchmarking the Netherlands as Gateway to Europe, in which different logistics hot-spots in Europe are compared in terms of their attractiveness as location for European distribution centers.

The study, conducted by NDL/HIDC (Holland International Distribution Council) and partners, Buck Consultants International and Ernst & Young, analyzed a number of business cases in different industries – lifestyle, pharmaceuticals, spare parts, high-tech, med-tech, aerospace and high tech – using characteristics specifi c to supply chains in those industries.

Many companies select the location for their European distribution center based on a limited number of cost factors, the study found. However, a location decision can have a large impact on the total supply chain costs of a company. Therefore, operating costs which may vary significantly per location, such as labor costs and costs for inbound and outbound transportation, as well as quality aspects, should also be taken into account when deciding where a new distribution center should be located.

And as sustainability is increasingly regarded as an important driver for business decisions, the impact of different locations on a company’s carbon footprint should be taken into account.

According to NDL/HIDC, a non-profit organization representing around 400 companies and organizations in the Dutch logistics industry, the findings of this latest study show that, although the competition of the neighboring countries is fierce, the Netherlands remains an attractive location for distribution center activities.

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