prof robert boute associate professor operations management- vlerick leuven gent managem...

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


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


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"


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


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


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?


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



� 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



� SKF Logistics Services:

� logistic centre in Tongeren

� outsourcing partner of the Finnish company Metso Minerals

� global centralization of spare parts logistics



� 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)



� 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” !


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


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


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


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


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"


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.

prof robert boute associate professor operations management- vlerick leuven gent managem...

Business

logistics success

flanders logistics sector

demanding logistics

logistics landscapeimpact

logistics centrefor

delocalization of logistics

skf logistics services

flanders investment