Logistics concepts
Centralized European Distribution
Description of concept:
A concept designed to distribute goods from a centralized European distribution center to customers in the
EMEA region (Europe, Middle East & Africa). The concept of Centralized European Distribution can be
combined with Value Added Logistics (VAL) activities. VAL is a combination of logistics and light industrial
activities that are carried out to customize products for the client or country concerned.
Vendor 1 or
source 1
EDC & Value Added
Logistics Center
Europe
Vendor 2 or
source 2
Middle East
Vendor n or
source n
Africa
Potential benefits of concept:
• Economies of scale
• Reduction of logistics costs
• Increased stock turns
• Less obsolete stock
• Improved control of operations and costs
• Better product availability
• Faster response to market
• Optimized use of assets
• Improved flexibility
Concept implemented in: all industries
Critical success factors:
• ICT capabilities
• European trucking network
• Lead times
• Spread of markets in Europe