Post on 12-Jan-2015
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Attractiveness of Flanders as a LogisticRegion
Prof Dr Robert Boute
© Vlerick Leuven Gent Management School & Flanders DC
Logistics in Flanders
� Logistics sector in Flanders is strategically important
� Important source of employment and welfare
� Many advantages for logistics in Flanders
� Flanders is centrally located
� Well-trained and flexible workforce
� Well equipped infrastructure
� However, attracting investments in logistics remains a challenge
� High labour costs
� Heavy tax burden
� Increasing competition from neighbouring regions
© Vlerick Leuven Gent Management School & Flanders DC
Study commissioned by Flanders District of Creativity in
collaboration with Flanders Investment and Trade
� Trends in logistics landscape
� Impact on strengths / weaknesses in Flanders
� Five success stories in the logistics sector
� Innovative logistics concepts
� Illustrate the competencies of Flanders
� Demonstrate how the location in Flanders supports innovation
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At a crossroads of trends
� Centralization vs. decentralization of logistics distribution
� Influence of the East: delocalization of logistics?
� Increasing competition from neighbouring regions
� Growing concern about climate change: “sustainable logistics"
� Rapid technological developments: "smart logistics"
© Vlerick Leuven Gent Management School & Flanders DC
Flanders in the heart of Europe, but ...
� … also in the future?
� Flanders is in economic centre of gravity
of Europe
• Impact of the East?
� Easy accessibility and market access,
both inbound and outbound transport
© Vlerick Leuven Gent Management School & Flanders DC
Well-developed infrastructure, but ...
� ... with limited capacity?
� Very well-developed transportation network
• Extensive road network,
but increasing congestion
• Port Structure
in Antwerp, Zeebrugge and Ghent
• Good multi-modal network,
but service is still lacking
� … and in a complex environment
� Complex administration and government bureaucracy
� Unstable political situation
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Qualitatively, highly trained personnel but ...
� … with a shortage?
� Strong presence of knowledge and skills
• But ... limited number of logistics training
� Extensive knowledge of languages
• But ... can we maintain this competitive
advantage??
� High productivity
• But ... very high wages and high taxes
� Flexible staff
• But … for how long?
© Vlerick Leuven Gent Management School & Flanders DC
Logistics success in five stories (1)
� Volvo Logistics:
� logistics services for automotive industry
• Originally logistics centre for Volvo plant in Ghent and Göteborg
• Became 4PL for impressive number for customers in automotive
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Logistics success in five stories (2)
� Barry Callebaut
� Distribution centre in Aalst
• near major production site of the group, in Wieze (270,000 tons of
chocolate per year)
• worldwide distribution of chocolate
Inbound: Wieze 80%, 20% from factories in France, Italy, Spain and UK
Outbound: 70% to Europe, 30% worldwide via Antwerp
© Vlerick Leuven Gent Management School & Flanders DC
Logistics success in five stories (3)
� SKF Logistics Services:
� logistic centre in Tongeren
� outsourcing partner of the Finnish company Metso Minerals
� global centralization of spare parts logistics
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Logistics success in five stories (4)
� Katoen Natie:
� e-commerce hub for logistics in Europe
� from Antwerp (Log Hidden City)
� more than 5000 packages daily
� highly “demanding" logistics (zero error tolerance)
© Vlerick Leuven Gent Management School & Flanders DC
Logistics success in five stories (5)
� UCB, Baxter, H. Essers en Tri-Vizor:
� combination of (intermodal) transport to Eastern Europe
� for pharma multinationals UCB and Baxter
� with H. Essers as logistics partner
� and Tri-Vizor as neutral "orchestrator"
What characterizes these 5 stories?
Logistics is a lot more than “moving boxes” !
© Vlerick Leuven Gent Management School & Flanders DC
Explicit, strategic choice for Flanders
� Central position in European market is an advantage
� Benefits in outbound logistics
• Barry Callebaut, Katoen Natie, SKF: Flanders in the economic and
geographical focus of the European market
� Benefits in inbound logistics
• Barry Callebaut: proximity to major production unit
� Critical mass of transport flows offers opportunities for optimization
• Volvo Logistics: high density of logistic flows makes it possible to
optimize transport
• UCB, Baxter: critical mass allows to combine logistic flows
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High complexity of logistics operations
� Presence of logistics expertise and skilled workforce helps in
complex environment
� E-commerce logistics demands zero tolerance for errors
• Katoen Natie can rely on flexible workforce with an affinity for the product
� European and global supply chains require expertise in planning and
optimization
• Volvo Logistics builds on the logistical and technical skills as a logistics centre
for its own Volvo factories
• Challenge for SKF: keep inventory (and working capital) under control
despite high product variance and uncertainty in demand
• Challenge for Barry Callebaut: meet the quality standards of the food
industry and the demand for customization
© Vlerick Leuven Gent Management School & Flanders DC
The importance of Information Technology
� IT in support of logistics operations
� Tracking & tracing
� Integrated planning and inventory control
� Automation in storage
� IT-supported “picking”
� ….
� IT as a driver of logistics operations or new business models
� Katoen Natie: IT integration at the base of e-logistics
� Tri-Vizor / Baxter / UCB: software (cloud technology ) makes horizontal
collaboration and demand shaping possible
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Different partners work well together
� Collaboration is the key to success.
� Tri-Vizor, UCB en Baxter, in collaboration with H. Essers:
• Cost reduction
• Higher customer service
• Reduction of CO2 emissions
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Sustainable strategies are on the rise
� Strong emphasis on sustainable logistics strategies
� Use of “green” energy
� Reduction of waste
� Reduction of energy consumption
� …
� Or, as Barry Callebaut puts it: “A sustainable supply chain is not
an option, it is a requirement"
© Vlerick Leuven Gent Management School & Flanders DC
Innovation keeps Flanders’ logistics on track
Flanders offers many advantages for innovative logistics
Flanders will still be an attractive focal-point for logistics
activities tomorrow
Certainly if we convert our weaknesses into opportunities.
© Vlerick Leuven Gent Management School & Flanders DC