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Why multilayered distribution works best in Europe
It might be tempting to view Europe as a monolithic marketplace, but consumers in each country have distinct cultural requirements and tastes in products. A centralized approach to European distribution can create economies of scale, but it’s not ideally suited for handling varying national demands for inventory and customer service.
Furthermore, growing road congestion and rising transportation costs are making this system less and less efficient. One solution: A multilayered distribution center supported by regional facilities in select countries. This approach allows a company to control logistics costs while still delivering a high level of services.
This article has been published in CSCMP’s Supply Chain Quarterly, October 2007.
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