Choosing the right supply chain setup

Do you plan to expand your business to Europe? Then set up your European distribution center (EDC) in The Netherlands!

Centrally located, it guarantees the fasted and most efficient acccess to the European market.

Why The Netherlands

Home to many international warehousing and distribution companies

Excellent location for outsourced logistics in Europe

Optimal solutions for cross border deliveries to end-users throughout Europe

Supply chain structures

There are many choices a company needs to make once it decides to setup a new distribution center in a new market, including:

In-house or outsourcing: A company can set up its own distribution center or it can decide to outsource it to a logistics service provider
Single or multiple warehouses: Will the company work with a single warehouse used to serve clients throughout Europe (or even to a larger geographic area), or will it only serve a specific geography in Europe. That would mean setting up additional warehouses for other markets.
Proximity to mainports: for direct deliveries where products are shipped from source locations worldwide to destinations throughout Europe, the proximity of the mainports in the Netherlands offer the best solutions.

Distribution center: outsourced versus in-house

One of the first questions a company needs to answer when they decide to set up a warehouse, is if they will set up and run their own warehouse or if they will ask a 3rd party to run the warehouse. There is no preferred way to do so, it really depents on the specific case what would be the preferred option.

EDC or RDC

When deciding whether to establish a European Distribution Centre (EDC), Regional Distribution Centre (RDC), or National Distribution Centre (NDC), companies need to consider several high-level criteria:

Market reach and demand: Will the company serve multiple countries across Europe, focus on a specific region or targe one country only
Logistics and transportation costs: EDC may mean higher last-mile delivery costs. RDC can reduce delivery costs and times but can increase overal logistics complexity. An NDC may minimise last-mile delivery but increase inbound transportation costs.
Service levels and customer expectations: EDC may offer slower delivery times but offer consistent service level. NDC will likely offer the fastest leadtimes.
Inventory management: EDC allows for centralized inventory and reduced stock holding costs. RDC balances inventory to regional needs but increses complexity and costs.
Flexibility and scalability: ECD offer high level of flexibility but requires a more complex planning, while an NDC offers limited scalability beyond the national market.
Cost structure: EDC typically involved higher fixed costs and lower variable costs compared to NDC.

The righ approach always depends on the specific needs, logistics strategy and long terms business goals of the company.

Direct deliveries via crossdock / freight forwarding

For specific products or orders it doesn’t always make sense to establish a warehouse. It might be more attractive to ship products directly to the final destination (using air or sea freight and a cross-dock solution). Also in this case, it can be beneficial for international companies to use the Netherlands as ta cross dock location to ship their products.

The Netherlands offers a strategic advantage due to its proximity to a large and well-off part of the European population. This advantage is further enhanced by its closeness to major air and seaports, ensuring quick access to international markets. The country’s highly efficient connections to the European hinterland—whether by road, rail, or barge—facilitate seamless logistics operations. Additionally, the Netherlands is known for its efficient and business-friendly customs processes, which further streamline the movement of goods.