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.

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.

Any questions about European supply chain structures?

Jasper Eggebeen

Senior Manager Supply Chain Solutions

j.eggebeen@ndl.nl

Get in touch with Jasper

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