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Logistics in Brabant: High Quality, Competitive Costs
Wednesday 24 February 2010

The province of Brabant, especially the greater Tilburg area, is ranked as one of Europe’s most favorable locations for a logistics operation serving the European market. This was the outcome of a recent study by Buck Consultants International and Ernst & Young on behalf of the Holland International Distribution Council. The research benchmarked several European cities as a location for an European logistics operation in a number of industries. The Netherlands, and Brabant in particular, still rank most favorable in industries such as pharmaceuticals, hightech/electronics, medical technology, lifestyle and spare parts. This is despite the expansion of the European Union and recent developments in supply chain management, as a result of which other countries in Europe also have gained popularity as locations for European distribution centers.

The benchmark demonstrated that the Netherlands and Brabant, when compared to other European regions, have the best grades when it comes to international companies looking for ideal, new distribution locations. The region's strategic location, the intermodal hinterland networks, the favorable labor climate, legislation and customs regulations are all important factors for which Brabant scores well. The area also scores among the best in terms of total supply chain costs, due to its attractive location relative to Europe’s main consumer market, as well as the Dutch fiscal climate. These factors and the fact that inland locations have an advantage over mainport locations because of the proximity to market, lower labor and facility costs and the absence of congestion, have led many leading multinational companies, such as Amgen, Abbott, Hollister, LG, IKEA and Würth to set-up European distribution centers in Brabant.

Brabant is also able to make a difference in supply chain sustainability. Main finding of the said benchmark is that transportation is the dominant driver with respect to the carbon footprint. Where mainports, such as Schiphol Airport and the Port of Rotterdam have a clear advantage because of their substantial potential for full loads or consolidation of smaller shipments, it became apparent that multimodal inland ports (for example the Port of Moerdijk) or locations close to the logistics gravity centers (for example the greater Tilburg area) are the best locations for shifting flows from less environmentally friendly road haulage to greener modes of transport, such as rail, short sea and barge. Also here the possibility to consolidate shipments has a clear impact on the carbon footprint.

Download the benchmark here

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