The Netherlands remains ideal location for European distribution

The Netherlands remains an ideal location for European distribution from a cost and quality perspective, and is also a good location forsustainable supply chain solutions. This can be concluded from the latest update of the 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.

Different logistics hotspots in Europe compared

In this benchmark study, conducted by NDL/HIDC and partners(Buck Consultants International and Ernst & Young) different logistics hotspots in Europe are compared as locations for European distribution centers by analyzing a number of business cases in different industries (lifestyle, pharmaceuticals, spare parts, high-tech, med-tech, aerospace and high tech), using characteristics specific to supply chains in those industries.

Many companies select locations for their European distribution center based on a limited number of cost factors. However, as earlier versions of the benchmark study illustrated, a location decision can have a significant 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 be taken into account when deciding where a new distribution center should be located. As sustainability is increasingly regarded as an important driver for business decisions, the impact of different locations on a company’s carbon footprint, was also taken into account.

With the benchmark study, NDL/HIDC aims to offer international companies a tool which contributes in taking the right decision with regards to setting up a distribution center in Europe.

The Netherlands is favorable in terms of total supply chain costs, quality and sustainability

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. Due to its position as gateway to Europe and the large volumes of intercontinental sea- and airfreight into the country (The Netherlands hosts the largest European seaport, and the third largest cargo airport in Europe), transport tariffs to and from the Netherlands are generally competitive. The Netherlands is ahead of other European countries in terms of flexibility of labor, often crucial for upscaling or downscaling logistics operations. And the Dutch tax and customs authorities are the most efficient en business oriented in the world. Besides, due to the many opportunities for the use of environmentally friendly modes of transport, and its relative proximity to the center of gravity of the European consumer market, the Netherlands is also a good location for a sustainable supply chain solution.

NDL/HIDC

Holland International Distribution Council (NDL/HIDC) is a private non-profit organization representing around 400 companies and organizations in the Dutch logistics industry and aims at improving their competitive position. NDL/HIDC helps international companies make a smooth entry into the European market through the region's leading gateway, the Netherlands. More information on NDL/HIDC can be found on www.hidc.nl.