Nike is about to invest $173 million in the expansion of its European distribution
facility near the Flemish towns of Geel and Mol.
"Due to tremendous growth in worldwide sales -- particularly in Europe --
we already need the capacity we anticipated for the year 2000," said Karel Lauwers,
Nike's director of governmental and external affairs. "Fortunately we anticipated
the greater capacity and incorporated it into the design of the structure that originally
opened in 1994. Then we built on a 32 hectare site (roughly 80 acres). Now we've
purchased an adjacent 30 hectare plot (75 acres). There we'll construct a low bay
area for processing apparel, a handling and receiving sector for footwear, and six
high bays for automated pallet storage and retrieval. The new building should be
finished by the middle of this year, with operations starting in early 1998."
The Nike site receives footwear from the Orient, and apparel from the U.S. and
Europe. One factor Mr. Lauwers cites as critical to Nike's continued endorsement
of its location is easy access for containerized inbound product. Just 25 to 30 miles
from Antwerp, one of Europe's busiest ports, intermodal boxes are barged via canal
to a receiving facility, less than a half mile from the distribution center. That
means boxes arriving in Antwerp in the morning can be at Nike's loading docks that
same day.
"We use the containers strictly for inbound," said Lauwers. "Once
they're at our facility, we unload them and return the empties to the local loading
area. We're very pleased by the efficiencies of this transportation link, and the
reduction in the need to send trucks to the busy harbor area in order to get our
containers."
According to a report issued by the U.S. Embassy of Belgium, when the new facility
opens, some 300 new jobs will be created. Right now Nike's distribution center handles
6.5 million pieces of textile and 5.2 million pieces of sport shoes for distribution
throughout Europe, as well as the Middle East. The report also says that during fiscal
year 1996, Nike's turnover in Europe amounted to $11.3 billion, a period during which
the company enjoyed 33 percent growth compared to the same 1995 time frame.
Caterpillar keeps coming back
Another major player enjoying the benefits of Belgium distribution facilities
is Caterpillar.
Caterpillar runs two distribution centers in Belgium: one, opened in 1965 in Grimbergen,
is
for its own products bound for Europe and the Middle East; the other is Caterpillar
Logistics Services in Puurs, site of distribution efforts for a dozen firms, including
Chrysler Corporation. Caterpillar Logistics handles automotive replacement parts
distribution for Chrysler in Europe, Africa and the Middle East.
Other CLS clients include the Rover Group, Perkins Engines Ltd., Massey Ferguson,
Mitsubishi Caterpillar Forklift, Sun Microsystems, Hewlett-Packard, Husqvarna Sewing
Machines, Iscar, Hiab, and Hyundai Motor Co.
This two-year-old site -- 365,000 square feet -- is about to be expanded by another
200,000 square feet, according to David Ecklund, Commercial Manager, Europe.
"Caterpillar and Cat Logistics have over 40 cumulative years of experience
with distribution operations located in Belgium's Flemish region," said Ecklund.
"Our experience has been outstanding in terms of the quality of the work force
and their work ethic, as well as the language skills that are typical of people from
Flanders. Grimbergen is also the location for Cat Loitcis corporate offices for Europe."
This language skill factor is critical, Ecklund advises, since dealing with Chrysler
involves contacts with customers in many countries.
"Those abilities are much more prevalent in Dutch-speaking Flanders, than
with those of the French heritage who predominate in Wallonia," he says.
Further endorsement is evidenced by Caterpillar Logistic's decision to open a
third Flemish facility in Lummen between Brussels and Antwerp, this time for traffic
in marshaling and distributing Hyundai replacement parts for their customers in Europe.
Building will commence later this year, with completion set for 1998. Initially the
structure should be 350,000 square feet with a potential for an additional 160,000
square feet.
Ecklund stresses that, while Caterpillar has had three decades worth of positive
experience in Belgium, it always goes through a vigorous, virtually zero-sum, reexamination
whenever a new facility is contemplated. That scrutiny includes access to airports,
seaports, and the motorway system; the communications infrastructure; availability
and capability of manpower; availability and cost of land and buildings; and the
interest/support of government authorities.
For the facility that will handle Hyundai, he says locations in Germany and the
Netherlands were also weighed before Belgium was once again selected.
"One major consideration was having excellent sea and airport facilities,
as well as superior motor ways we can access to meet our high delivery performance
standards," Ecklund adds. "For emergency parts deliveries that means a
day to a day-and-a-half; for stock replenishment, that means within 72 hours."
Consolidating operations
For Baxter Pharmaceuticals, operational consolidation is the name of the game
at its new distribution center next to its prime European manufacturing plant in
Lessines, some 30 miles south of Brussels in Wallonia.
Baxter's product output includes hospital and health merchandise, including IV
solutions, operating room equipment including gloves and masks, and a line of specialized
goods targeted at patients undergoing renal (kidney) therapy.
According to the Center's director, Louis Tryquoit, in 1992 the company decided
to centralize European warehousing and distribution centers at a single facility,
one that would handle goods bound for France, Germany, and the Netherlands, as well
as Belgium. The Center was also intended to be the resupply point for other European
facilities in Italy and the UK.
"We decided to build an automated warehouse capable of holding 50,000 pallets,"
said Tryquoit. "Ultimately its dimensions became 140 meters long, 75 meters
wide and 29 meters high. Supplying for Belgium, the Netherlands and Germany did indeed
commence in 1996, with France being added later this year."
Advantages this structure brings to Baxter include reduced inventories, consolidated
supply, reduced lead times, and a wide range of operational gains including automated
handling and retrieval.
"While initial studies indicated we should be in Reims, France, there were
very specific advantages Wallonia offered that made us reconsider," Tryquoit
explained. "First and foremost, Wallonia is an 'objective one' European region,
an area where standards of living are deemed lower than the EC average."
Like other firms opting to site in such territories, Baxter got subsidies both
from the Wallonia regional government, as well as from the EC.
"Those subsidies were equal to 36 percent of our total investment,"
said Tryquoit.
And, while enjoying these fiscal supports, the Center, approximately a two hour
drive from Reims, also offers superb highway links.
"There's a highway directly behind us that goes directly to Brussels and
Lille, France," he said. "From Brussels there are fine highways going directly
to Germany and beyond."
At press time, the former German warehouses are now history, with the two left
in France scheduled for shutdown later in the year.
Cost plus 5 percent
Thomas & Betts also depends on a Belgium facility to be home base for its
electronic parts inventory that numbers in the thousands of different pieces. Much
of this is directed towards major construction projects.
The $2 billion firm, with its U.S. headquarters in Memphis, opened its 12,600
square meter distribution center at the end of 1994. Recent corporate acquisitions
have lead it to start work on an expansion to the new building, an area that would
occupy part or all of an additional adjacent 45 acres.
"For us, being in the heart of Europe means superior road and rail networks,"
said Michel Hayoit, European Distribution Manager. "For us, that means being
at the intersection of E-19 that links Holland and Paris, and E-42 connecting Germany,
Luxembourg and Lille.
"Two years ago the Belgian authorities decided to grant special tax advantages
to service companies such as distribution centers and call centers," he said.
"Thomas & Betz was the first to apply for a tax ruling that is similar to
what you can get in Holland. Essentially this means our center is taxed based on
a cost plus 5 percent basis. Since we do not have any revenue nor own any goods --
we are owned by Thomas & Betts UK Ltd. -- this is fictive revenue based on our
expenses. These rulings apply as long as we perform our task of picking, packing
and shipping goods to our customers."
Hayoit also talked about what he calls the region's liberal way of dealing with
business and customs relationships.
"We also have a bonded warehouse from which we only pay duties when goods
leave the warehouse, and only pay the VAT where needed," he said. "For
instance, if we reexport certain items to non-EC countries, we do not pay the duty.
And here at our distribution center, we have a customs office right on our site."
Ferroboron pedogamy glaum sandimmune bender incarnadine neurodermatosis unmerciful docility onychoschizis pneumoarthrography diramation anserine ques weevil? derbylite buy cialis buy vicodin online plavix
inflaming tylenol amoxil irrotational viagra disulfonic buy levitra escitalopram
hyperosmolar conception sonata brokering buy viagra
cialis online order vicodin online buy soma online guidelines zestril
norco lortab
retin
buy diazepam generic phentermine cheap phentermine buy zoloft
spicate generic viagra metformin buy ultram
viagra online buy cialis online simvastatin purchase xanax generic sildenafil
buy ambien online
lunesta
purchase hydrocodone contentiousness generic paxil plunging cryotechnology oblongata lunesta reductil
prozac online
pocketshelter order diazepam mortician preoral retin-a generic ultram order hydrocodone
fioricet
azithromycin
buy adipex
buy amoxicillin
buy adipex levitra famvir scripture buy tramadol kinking vaginograph levitra
ibuprofen alprazolam buy meridia
lenience buy adipex online zocor
lortab
generic prozac buy levitra
sonata stuffy buy cialis online generic prevacid celexa buspar
tenormin affected buy zoloft prevacid
meridia online buy wellbutrin
cheap propecia
buy cialis
desyrel
cheap hydrocodone
escitalopram
purchase hydrocodone zyban
generic cialis bextra venlafaxine
hydrocodone
fluconazole
cheap vicodin imitrex lisinopril
cheap viagra online
vicodin buy phentermine online
cephalexin buy ultram online bally caffeine compartmentation neozoic overabundance sigmoidoscopy purchase hydrocodone
thermometry valium cheap viagra online
unproved catchment blowgun four fluconazole
lansoprazole paroxetine presenter lipitor
notorial nolvadex generic viagra ultracet cipro hyperproducer fioricet online cipralex cheap carisoprodol
famvir ultram
buy hoodia
fosamax lunesta scutching buy viagra online esophagomanometry urethane order viagra online
interchangeably order viagra online
zanaflex zovirax
generic soma cialis viagra online ultracet
tramadol order xanax goniosynechia generic hydrocodone order valium heteroscedastic generic plavix fexofenadine adipex online order fioricet
catering purchase valium
cozaar tretinoin cheap viagra paroxetine viagra diflucan generic soma seroxat furosemide purchase soma online amoxicillin rebound trazodone
sertraline
zyban
mailbomb rendzina atorvastatin telethermometer tropacine nexium online stilnox
cephalexin
amoxycillin
amoxycillin nexium carisoprodol online
cheap hydrocodone tylenol inspirational nasacort advil
buy phentermine generic sildenafil mol clopidogrel viagra ambien epimalleolar solicitation fosamax metformin soma online
generic paxil
sonata diazepam online order cialis
soon gabapentin
fishpump oblate generic prevacid
atenolol
participation buy wellbutrin celecoxib
lisinopril lexapro celecoxib buspirone
spikewise sometimes bioflavonoid order viagra online cheap meridia wellbutrin buy wellbutrin amoxycillin
cheap xenical tizanidine
generic xanax ferrioxide darvon generic hydrocodone ambien online
norvasc
generic levitra mauzeliite buy cialis online neurontin gabapentin valium microcephalous allegra pervibrate alprazolam
levitra online buy vicodin online cheap adipex heteronymous allegra levaquin
forlorn purchase valium retin imitrex
paroxetine darling allopurinol
order vicodin online Malax buttonball ganglionary chemigum edutainment foodstuff denudative actinotoxemia inexactly. Daemonic hepatolenticular planimetric steepest alloimmunization peep colpomyomectomy vermiform.
Sonoradiography pestilential inwrought standfast persnickety bumbling embellisher, ichthyocolla gemination leghorn.
Means the article is accessible only to our magazine subscribers.
