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Logistics 2.0: mega distribution centers in Flanders

Mega distribution centers are on the rise in Flanders, the northern region of Belgium. 33 have been established between 2013 and 2020, covering a grand total of 3.1 million m² in surface area. Three of those centers are currently under construction. But what makes companies choose to scale up their logistics operations in Flanders?

Distribution center

Increased efficiency

According to Buck Consultants International, the driving forces behind the growing number of these larger distribution centers are efficiency, economies of scale in warehouse operations and an increase in e-commerce activities. René Buck, CEO of Buck Consultants International: “The scale advantages and innovation potential make mega distribution centers an attractive option for many organizations.”

Attractive labor market

In many top logistics regions, the labor market has shrunk, and the use of flexible labor has become more difficult. Flanders, however, has a productive workforce and stable labor costs, making it an attractive alternative. “By meeting the demands of the international market, Belgium and Flanders will be able to benefit even more from the continued demand for business locations and international distribution centers,” René explains.

Prime location within Europe

Another strength of Flanders is its strategic location in Europe. Together with an extensive infrastructure of roads, waterways and railways, this means that Belgium’s northern region offers easy connections with the rest of Europe, Russia and even China. As a result, many companies use Flanders as an EMEA or even global distribution hub.

The power of a strong ecosystem

Last but not least, Flanders’ strong logistics ecosystem is an important factor for companies setting up XXL warehouses in the region. Flanders is known for its cluster organizations – such as VIL, the spearhead cluster for logistics. Companies, governments and knowledge institutions work together to create the best climate for logistics growth and cooperation.

About Belgium and Flanders

With Dutch as its official language, Flanders (Dutch: Vlaanderen) is the autonomous northern region of Belgium. The capital of both Belgium and Flanders is Brussels.

More info

Buck Consultants International
Reported by
www.valuechain.be
25 June 2020

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