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A market expected to reach $65.99 billion by 2030: the logistics and freight sector is one of the cornerstones of the economy of the Netherlands, which is also known as ‘the gateway to Europe’. A market massively preempted by 3PLs. To explain the Dutch model and its specific features, we take a look at the logistics anatomy with Jan Heijblom, Senior Sales Executive for BENELUX at Exotec, and himself a native of the land of tulips.
Due to its geographical and environmental factors, as well as its infrastructure, the Netherlands is a relatively fertile ground for the movement of goods:
Other countries that are geographically close, such as Belgium and the UK, also experience a high prevalence of 3PLs. However, a combination of factors sets the Netherlands apart from its neighbours:
‘All of the above make it relatively easy for foreign companies to start operations in the Netherlands and distribute their products from here.’
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3PLs and the Netherlands have a history that goes back several centuries. If you’ve never heard of the VOC or Verenigde Oostindische Compagnie, the name East India Company may ring a bell. Founded in 1602, it was not only the first 3PL company in the Netherlands, but also the oldest public limited company in history, with shares listed on the stock exchange. ‘At the height of their success, their value was as high as the current GDP of Germany, France and the UK!’ explains Jan Heijblom.
Top 5 3PL providers worldwide | Top 5 Netherlands 3PL providers |
Kühne+Nagel (CH) DHL (DE) DSV (DK) DB Schenker (DE) C.H. Robinson (US) | DHL (DE) DSV (DK) CEVA (FR) GXO (US) Kühne+Nagel (DE) |
💡 Jan Heijblom’s insight ‘With the exception of CH Robinson, the top 4 global 3PL providers are very active in the Netherlands.’ | 💡 Jan Heijblom’s insight ‘Many Dutch 3PL companies have now been acquired by other companies ’ |
What are the 6 characteristics that make up the DNA of 3PLs?
Warehouse robotics system built for 3PL CEVA Logistics in the Netherlands
The logistics of a retailer or manufacturer are comparable to those of a 3PL, with one major difference, which Jan Heijblom notes: ‘Whereas a manufacturer uses its warehouses and optimises the available space in the best possible way, a 3PL goes further: it sells this space to its customers.’ A business in its own right!
These considerations are prompting 3PL players to take a close interest in the commercial value of their storage space: ‘If you have a 14-metre-high warehouse, you can sell 14 m3 of storage space to customers using just 1m2. Having tools that allow you to exploit the height and volume of a 3PL warehouse are crucial differentiators’.
Especially during a period of growth: ‘In Europe, the 3PL sector is growing at an annual rate of 2.6%’, concludes Jan Heijblom. A figure to be cross-referenced with e-commerce growth, of the order of 10.5% in 2023 in France (2.35 billion transactions), which augurs further growth for 3PL logistics!
Based on the example of the Netherlands, where the 3PL model predominates, what strategic directions can be envisaged to support the growth in demand? Optimisation avenues can be found throughout the supply chain, with a common denominator: warehouses.
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