zealand as nordic logistics hub

ZEALAND AS NORDIC LOGISTICS HUB?

Dato: 15th of April 2009 Location: CBS Speaker: Casper Keyghaldi-Østergaard

Copenhagen Capacity

Zealand as Nordic Logistics Hub? - Casper Keyghaldi-Østergaard 2

AGENDA

What is Copenhagen Capacity?

What are the possibilities for Zealand as a logistics hub?

What are the challenges for Zealand as a logistics hub?

Do the companies need it?

Conclusion

Copenhagen Capacity

COPENHAGEN CAPACITY

The Capital Region’s official organisation for promotion of investments

Assisting foreign companies free of charge and with complete

confidentiality

Marketing of the region within the following:

Life Sciences

Head office, logistics and distribution

Film and creative sectors

Cleantech

Performance contract entered into with Region Zealand in 2008, one of

the focus areas is logistics and distribution

3Zealand as Nordic Logistics Hub? - Casper Keyghaldi-Østergaard

THE POSSIBILITIES FOR ZEALAND AS A

LOGISTICS HUB

Copenhagen Capacity

DENMARK - THE BEST PLACE IN THE WORLD

TO DO BUSINESS!

5

Country Global ranking

Denmark 1

Finland 2

Sweden 9

Norway 17

Source: The Economist Intelligence Unit 2008

Zealand as Nordic Logistics Hub? - Casper Keyghaldi-Østergaard

Copenhagen Capacity

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INFRASTRUCTURE

Femern Belt 2018

The government’s traffic proposal 2020

Cities such as Køge & Ringsted see potential in transport and logistics

Existing Øresund and Storebælt bridges


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UNIQUE LOCATION

Antal af

virksomheder Farve

>901

351 - 900

101 - 350

0 - 100

80% of the customer’s

clients are in the areas

marked in red

Often day-to-day

delivery


THE CHALLENGES FOR ZEALAND AS

A LOGISTICS HUB

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QUESTIONS THAT ARE MAKING

THEMSELVES!

Are the locations of Zealand’slogistics hubs right?

Are there enough vacant sites for new buildings on Zealand?

Have sufficient investments takenplace in Zealand’s logisticsproperties?

Is the transport business able to think in complete customersolutions?


DO THE COMPANIES NEED IT?

Copenhagen Capacity

WHAT DOES THE CUSTOMER SAY?

11

Copenhagen Capacity has prepared a mini market survey

We asked a number of companies about their warehouse activities in the

Nordic countries

The result was that half the companies had several warehouses in the

Nordic countries

We also noted that almost half the companies are contemplating to

consolidate their entire warehouse activities in one location

We found that the companies’ first priority is costs

How can we help ….


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THE CONCEPT NORDIC DISTRIBUTION

The customer’s warehouse situation today

European central

warehouse

European central

warehouse

The customer’s situation tomorrow


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HOW CAN WE HELP?

We simulate whether a Nordic Distribution is good business for the customer

We use a new-developedsimulation tool

We simulate on the basis of costs


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SIMULATION TOOL

The basis is costs with regard to all the customer’s warehouses in the Nordic countries

The simulation of costs are divided on :

Ingoing transport

Operation

Outgoing transport

The customer contributes with his own data

Ingoing transport

Operation

Outgoing transport


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THE SIMULATION TOOL

The customer’s total costs in the Nordic countries are now known

The total costs are weighed against the costs by one large location on Zealand

The comparison can be made with several different Zealand and Swedish locations

By savings on Zealand we have a case!

Ingoing transport

Operation

Outgoing transport


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CASE: L’ORÉAL IN GREVE

L'ORÉAL in Denmark employs approximately 300 staff

L'ORÉAL distribution centre in Greve Main is hub for the company’s Nordic distribution

From Greve Denmark, Sweden and Norway are serviced

The distribution centre is 12,000 m2 and was built in 1997

2500 different references are handled

Ordres coming in before10.30 o’clock are at their destination the next day

Kilde: Interview med L'ORÉAL og www.loreal.com


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SAVINGS FOR L’ORÉAL IN GREVE

Savings of two-digit percentage

Savings realised on ingoing transport (almost only complete loads from the factories in Europe)

Savings realised on decrease in goods’ stock days (20-30% less days than Finland)

The customer has experienced better quality with regard to faster deliveries

Kilde: Interview med L'ORÉAL og www.loreal.com


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DOUBLE TURNOVER IN 3 YEARS!

General Manager - Peter Trabolt:

”We can document that the consolidation has resulted in large savings and a lift of quality”

”We have doubled turnover and assortment in three years, this requires a strong organisation”

”From the beginning we have spent time on coordination and standardization as much as possible, this is decisive”

”We have attracted talented staff, not least as a result of the large volumes”

”We are expanding by 5,000 m2 at the moment!”Kilde: Interview med L'ORÉAL og www.loreal.com


CONCLUSION

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ZEALAND AS A SCANDINAVIAN

LOGISTICS HUB ?

We believe in Zealand’s potential!

We believe that the trading conditions in the world are suitable for the concept of Nordic Distribution

We completed a large case last year

We are working with three interestedcompanies at the moment

We believe that the most important challengewill be the politicians’ willingness to wanttransport and logistics


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THANK YOU FOR YOUR TIME

Your contact:

Casper Keyghaldi-Østergaard

Tel.: +45 33 22 02 22

Mobile: +45 40 80 43 09

Email: [email protected]


zealand as nordic logistics hub

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