Holland International Distribution Council

The Netherlands – Your logistics gateway to Europe

Bangkok, October 19, 2017

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1. HIDC

2. Logistics in the Netherlands

3. The Netherlands – Gateway to Europe

4. Supply chain solutions

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Who are we?

Private non profit organization representing 300 members.Founded by the Dutch logistics industry in 1987

Holland International Distribution Council (NDL/HIDC):

InternationalLogisticsService

Providers

Development Agency

Facilitator

Rail Transport

Road Transport

Airport, carriers& forwarders

Seaports, carriers& forwarders

Industrial service providersTemp. agencies

Banking & insurance

Information technology

National & regional government

Shippers

Short sea & inland shipping

Consultants

To promote the Netherlands abroad as the "Gateway to Europe" with the objective to attract economic activities for the logistics sector

Mission:

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Our Services

• Advisory role on European supply chain (logistical design, financial structure)

• (Logistics) partner selection

• ‘Fact Finding Trip’ in the Netherlands

• Assistance in every step – now and in the future

• In close cooperation with Netherlands Foreign Investment Agency (NFIA)

How can we help?

Our services are confidential and free of charge

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• Detailed Supply Chain propositionsfor

– Agro-food

– Chemicals

– Life Sciences & Health

– Life Style (incl Fashion)

– High-Tech Systems

– E – Commerce

– Spare parts

Industries

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1. HIDC

2. Logistics in the Netherlands

3. The Netherlands – Gateway to Europe

4. Supply chain solutions

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1. Long history in international trade

2. Well-developed logistics sector:a) € 62 billion (10.4% of total GDP)b) 822,000 jobs (9.4% of total)c) Top ranking in supply chain

benchmarks

3. Natural gateway to Europe

Logistics in Holland

TNT / FedEx Air Hub

UPS Air Hub

Brussels Airport

Port of Antwerp

Port of Rotterdam

Amsterdam Schiphol Airport

BELGIUM

GERMANY

Main logistics hot spots

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241 320

159

284

122

144

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Where are products entering the EU?

Value of imports from outside the EU (billion Euros), 2016• Germany is the leading importer from outside the E.U., driven by large domestic market (e.g. automotive)

• U.K. and the Netherlands follow at approx. 284 and 240 billion Euros in 2016

• Imports for the Netherlands are largely for European markets; 80% of NL exports are destined to the EU

• Import value per capita in the Netherlands (€14,000) is almost four times higher than in the U.K. and Germany

Source: Eurostat 2017

European hub for Agri and Food – import

0

5

10

15

20

25

30

35

2012 2013 2014 2015

Extra-EU imports of Agri and Food in million tonnes

▪ The Netherlands is the main importer of Agri and Food into Europe

Netherlands Germany Italy UK Spain France Belgium

Source: CBS, 2016

European hub for Agri and Food – export

▪ The Netherlands is the second largest

exporter of Agri and Food products in

the world

Export value in billions US$

Source: CBS, 2016

Cold storage capacity

0 50 100 150 200 250 300 350 400 450

Spain

Italy

France

Germany

Denmark

Great Britain

Netherlands

Capacity of refrigerated warehouses (m3 per m2 country area)

Source: IARW, 2014 (most recent figures)

▪ Within Europe, the Netherlands has the highest capacity of refrigerated warehouse

Agri and food – who’s there?

The Netherlands: a chemical powerhouse

Source: Invest in Holland, 2016

#

5Country forchemical export

57000employed

of allDutch exports17%

Home to

of the top

Leading chemical companies

19 25

€56Billionturnover

(2% of GDP)

Chemicals – who’s there?

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1. HIDC

2. Logistics in the Netherlands

3. The Netherlands – Gateway to Europe

4. Supply chain solutions

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Holland, your logistics gateway to Europe

1. Major European entry point for overseas products

2. Central location within the European consumer market

3. Excellent connectivity to Europe and all continents

4. World class fiscal and business environment

5. Value added logistics for all industry sectors

6. High quality and competitive costs

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The Blue Banana

244 Million Consumers

The Blue Banana holds an

economically advantageous

position through its population

density and its infrastructure.

Source: Earthmapper

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Why The Netherlands as location?

In the heart of the European market

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Port Of Rotterdam – Largest in Europe

Source: Port of Rotterdam

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Amsterdam Airport Schiphol

Source: Amsterdam Airport Schiphol 2016

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Dense Air Cargo Network with Asia

Source: Schiphol Cargo

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Short lead times to European markets

1 1-2

1-2

2-4

2-4

2-3

2-3

2-4

3-5

3-5

2-3

Delivery time in days from the Netherlands

▪ Most European countries can be reached within one to three days with regular road transport

▪ This is often used for or replenishment of forward

stock locations or regional DC’s

▪ Express networks provide opportunities for late cut-off times and next or same day delivery in Europe

▪ Extreme flexible last mile; therefore a greater choice in delivery and collection

▪ Multiple return options

Source: Royal Rotra, 2017

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Multimodal connections

Source: Schiphol Cargo

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Fiscal climate – customs

Source: UNESCAP, 2016

0 20 40 60 80 100

Ireland

Portugal

Italy

Switzerland

France

Belgium

Spain

Germany

Austria

Netherlands

Transparency

Formality

Institutional arrangement and cooperation

Paperless trade facilitation

Cross-border paperless trade

▪ The Netherlands: best overall performer in trade facilitation(119 countries)

▪ This is due to the pro-business attitude of customs

▪ Meaning a speedy transshipment ofproducts and a low risk of product being delayed at ports or DCs

▪ Netherlands scores 93%; EU average is 62%

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Labour force – language skills

▪ The Netherlands ranks first in terms of

adult English proficiency

▪ Additionally, the Dutch speak a variety of

foreign languages (such as German and

French)58.14

58.72

60.17

60.9

61.49

61.58

62.13

63.2

72.16

0 10 20 30 40 50 60 70 80

Romania

Hungary

Switzerland

Belgium

Poland

Germany

Austria

Luxembourg

NetherlandsEnglish

German

French

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High quality and competitive costs

Source: Buck Consultants International, logistics benchmark 2016

https://www.hollandlogisticslibrary.com/inbound/resource/benchmark-the-netherlands-as-a-logistics-hotspot

▪ According to independent consultants,

the Netherlands ranks as a competitive

country in terms of operations costs and

quality.

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1. HIDC

2. Logistics in the Netherlands

3. The Netherlands – Gateway to Europe

4. Supply chain solutions

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Indirect supply chain model

✓ Typical sales terms: EXW, FOB, CIF

✓ Customer takes care of (all) logistics

✓ Distributors may take margins and control of

product

Direct supply chain model

✓ Typical sales terms: DAP, DDP

✓ Your company takes care of (all) logistics

✓ Manufacturer offers higher service levels and takes

control

Going direct to serve your future clients

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Direct approach: options in set-up

Traditional EDC BDC + Satellites RDC

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Supply chain solution

Market entry phase Growth phase Efficiency phase Break through phase

Focus on fast market entry

Focus on brand awareness and

improved margins

Focus on cost efficiencies

Focus on break through supplychain solutions

Time

The supply chain solution life cycle

Source: HBR

Outsourced Owned

HIDC can help with advice on which model to use and why.

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Source: HIDC 2015

Outsourced versus in-house logistics

Some of the main advantages of outsourcing include:

• Focus on core business;

• No capital investments, so fewer risks;

• Lower total logistics costs, due to economies of scale;

• Higher service levels and/or shorter lead-times;

• Flexibility in space and manpower;

• Shorter time to start up;

• Better insight into logistics costs;

• Flexibility in supply chain set-up

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Some of the main advantages of outsourcing include:

• Focus on core business;

• No capital investments, so fewer risks;

• Lower total logistics costs, due to economies of scale;

• Higher service levels and/or shorter lead-times;

• Flexibility in space and manpower;

• Shorter time to start up;

• Better insight into logistics costs;

• Flexibility in supply chain set-up

Source: HIDC 2015

Outsourced versus in-house logistics

When do companies choose a in house

solution?

➢ Logistics core competency

➢ Volumes allow economy of scale

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• The European logistics industry

offers the full range of value

added logistics/ services

• It allows focus on core

competencies, such as design,

manufacturing and/or sales &

marketing

Value added logistics/services

StorageDe-

consolidation

CustomizationConfigurationQuality Control

Inbound Outbound

High

Goods flow

Low

Ad

ded

valu

e

LabellingPacking

Reverse logistics

RepairAssembly

Customs Fiscal representation

Tracking &Tracing

CustomerService

Value Added Logistics Value Added Services

Value added logistics and services offered by the European

logistics industry (sample)

Invoicing

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Value added logistics (VAL)

Value added logistics include:

▪ Assembly, reverse logistics and repair

▪ Testing, sampling and quality control

▪ Customisation and configuration

▪ Packing, re-packing and sealing

▪ (Secured) storage and de-consolidation

▪ Labelling and coding

▪ Temperature controlled supply chains

▪ Cross-dock operations

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Value added services (VAS)

Value added services include:

▪ Inventory management

▪ Order processing/invoicing

▪ Fiscal representation

▪ Customs (import/export)

▪ Bonded warehousing

▪ Track and trace

▪ Control towers

▪ Customer service

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New products

▪ Life Sciences

▪ High Tech

New markets

▪ Buying power shifting eastwards

▪ Emerging markets outside Europa

New supply chain models

▪ E-commerce, omnichannel and returns

▪ Modal shift, OBOR

▪ Brexit

Supply chain solutions have to adapt

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Germany

France

U.K.

$42.6 billion

$74.5 billion

$93.9 billion

Size of West European e-commerce markets

E-commerce - omnichannel

▪ The Netherlands is used a European base for e-tailing companies, as all sales channels can be fulfilled efficiently

▪ Amsterdam Airport Schiphol is the main x-dock for intercontinental drop shipments

▪ Direct access to integrator hubs and national postal networks for B2C

▪ Quick access to Amazon warehouses for Fulfilment by Amazon (FBA)

▪ Close proximity to main urban regions for retail fulfilment

Holland International Distribution Council | The Netherlands | www.hidc.nl | info@hidc.nl