E-business is the name of the game. Today, most companies have Web sites, but when it comes to distribution of physical goods, the Web site is only part of the equation.

The key to using e-business for order fulfillment centers is having the infrastructure in place — communications as well as transportation.

The Netherlands represents a prime location for U.S. expansion of e-businesses into Europe for a number of reasons. An important one is the developed infrastructure.

The telecommunications industry in the Netherlands provides a modern system with a 100 percent digital network, the most extensive fiber-optic network and one of the largest bandwidths in Europe, and the option of leasing secure Internet connection lines, according to the Netherlands Foreign Investment Agency.

Thus, as a location for e-business, the Netherlands continues its reputation as a trading nation and as the gateway to Europe.

When it comes to the order fulfillment capabilities of Holland, almost 75 percent of the economy is in the service sector, which makes the Netherlands a prime location for call centers and e-fulfillment centers.

Most of the population speaks multiple languages, which eases the communications factor and reduces cultural barriers. The strategic location of the Netherlands allows for expedited access to Europe, and the highly developed logistics network makes travel to other countries easy.

Born for e-business

The international flavor in the Netherlands makes it a natural for e-commerce activity.

“About 80 percent of the Dutch speak English,” said Paul Kleinje, area director of the Netherlands Foreign Investment Agency. “In fact, about this percentage of the population under 40 speaks four languages.

“We have a tradition of international trade, since we have no natural resources. We are used to working with foreign companies from all over the world.”

The Netherlands government is actively promoting the use of the Internet for e-commerce. The GigaPort Project, a joint initiative of the Dutch Government, business community, and academic institutions, was launched in 1999 to provide a platform for creating information and communications technology (ICT), and testing it on a high-speed network.

The GigaPort Network, one component of the project, will offer some of the fastest network connections in the world upon completion in 2002.

Another facilitator of e-business is the Amsterdam Internet Exchange (AMS-IX), a high-speed network that is the largest Internet exchange in continental Europe.

The AMS-IX allows its members to exchange information more efficiently through a shared infrastructure and direct connections to other ISPs in the United States, and abroad through the Netherlands international bandwidth system.

One company, computer giant IBM, recently opened its Advanced Internet Applications Center in Zoetermeer, a facility which coordinates the development of Internet applications to assist customers in Europe, the Middle East and Africa to take advantage of Internet opportunities.

“In addition, the Netherlands is developing the first ever Internet code of conduct,” said Kleinje.

Netherlands also friendly to real buildings

The Netherlands also offers advantages for companies with physical buildings, such as distribution centers.

Amazon.com, a leading seller of movies, music, and books, opened its new customer service center in The Hague in March. The 103,000 square foot facility is in response to Amazon.com’s growing global customer base and will serve customers throughout Europe.

“The advantage of the Netherlands is that the logistics and distribution infrastructure is already in place,” said Edgar Kasteel, general manager of logistics for the Holland International Distribution Council.

Kasteel cited the thousands of companies involved in all aspects of transportation and distribution.

Another company involved in e-fulfillment in the Netherlands is Verza Inc., based in San Francisco. Verza.com, which was founded in 1998, is a provider of online payment solutions for small and medium-sized Internet merchants.

“The Netherlands is host to an advanced communications infrastructure,” said Joost Zuurbier, co-president of Verza. “When we make a call, we don’t go through a telecom provider. It is transmitted via the Web as an analog system.

Verza is an online business partner, which assists small Internet businesses in improving profitability and expanding their markets through Verza’s reseller program, while allowing them to maintain full control of their customer relationships.

Verza deals with logistics, acting as an intermediary between buyers and sellers. It uses a variety of carriers to ship its customers’ goods — 60 total, said Zuurbier.

The tracking systems of these carriers, which include DHL, TNT, and others, are integrated into Verza’s system, so that the client may track the order status on Verza’s Web site.

“An advantage of Verza’s system,” said Zuurbier, “is that it can turn any physical good into an electronic one. E-business provides lower prices, better service, and more competition.”

Another company involved in order fulfillment and physical distribution in the Netherlands is LinuxMall.com, based in Aurora, Colo. LinuxMall.com is the primary Linux e-commerce Web site.

Linux is a computer operating system established in the early 1990s. Frank Kasper, the chief operating officer of LinuxMall.com, said that the company recently opened an 11,000 square foot international distribution center in Amsterdam, which is expected to double in size in the near future.

“An advantage of the Netherlands for e-business is that its location is central to customers throughout Europe, and it is also well organized for transportation and logistics,” said Kasper.

The key is to get your product in the customer’s hands.

“It’s fine if you have a Web site, but you also need the means to deliver the goods,” said Kasper.

Working to stay on top

The key to the Netherlands advantage in the area of e-business and physical distribution is the combination of its great Internet capabilities, and its well-developed trade and distribution capabilities. Not every country in Europe can boast that advantage.

Anthony Coia is a Washington, D.C.,-based freelance writer.