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.
Please contact Mo Lasgaa for further information.
50 years of experience
Consulting firm with over 50 years of experience.
Availability of a European logistics database with benchmark figures on transportation and warehouse costs.
Full scope expertise on network design, as well as warehouse design (conceptual layout, logistics - and storage equipment) and logistics building design (engineering and investment calculations).
Ability to support implementation of new logistics concepts (70% of Groenewout revenue is with existing customers in follow-up/implementation projects.
Extensive operational knowledge, hands-on, pragmatic and bottom-up approach.