B4 teleportation… : supply chain and logistics

Excellent article in a recent Suplly Chain Management Review about the 7 keys to facility location : http://www.scmr.com/article/CA6558638.html?rssid=68

I totally agree in the fact that computer models can’t do everything and that a visit, on site, is the best complement. Local Development agencies (like the one I work in) can help in “humanizing” the location models: we help companies to visit the potential sites (buildings or lands) for their future facility and most of all, to meet the right partners and connexions locally. This service is pre-paid by the regions, or area, the development agency covers, so…. it’s worth the try and is much complementary to the classical computer models !

I posted several videos (in French only), I should say ‘interviews’, about new places to invest in logistics in Western France, on my French blog: http://www.western-france.info/logistique
If you want to have a brief overview about the outcoming places to invest, check out the videos. You’ll learn a bit more about Laval, Saumur, Angouleme, Le Mans… and many more coming.

Save the dates: 4 to 6th June 2008 in La Baule (the sea-side resort) in Western France.

2 major events are taking place at the same time with cross-meetings : one is focused on CEO levels from very large multinational companies: the La Baule-WIC (World Investment Conference), and the othe one is focused on innovative start-ups from the USA and Europe: the CTS (California Tech Showcase). My opinion is that it is worth the travel, so give it a try and you’ll see that Western France is not only good for fresh air !

Latest news I got from the 2 events:

- The CTS has just started the selection procedures, so if you are (or if you know any) a young innovative tech company, think twice before leaving the opportunity to showcase your business between 54 other start-ups from California and Europe to a public of about 200 CEOs of international companies, such as British Telecom, Siemens, ST Microelectronics, Daimler or Nokia Ventures. More info on www.euro-gate.net

- The La Baule-WIC is in the starting blocks from now on. This year’s theme handels with “Brainpower in Europe -the driver for growth”. Essential for attaining the aims of the New Lisbon Agenda, Europe needs to increase its level of R&D investments as well as to attract new talents to maintain the comparative advantage it shows today in this field. During the conference in June, business leaders and European decision makers will debate about this subject and come with concrete measures to be implemented. To get to know everything about FDI in Europe and more specifically about the sector of creativity and design, you will have to download the scoping paper of the La Baule World Investment Conference at the following website: http://www.labaulewic.org/programme/Executive_Summary

I’ll be there and I’ll let you know in advance the latest information about the 2 venues. To be continued…

Just a few days after the announcement of the takeover of the logistics company CHRISTIAN SALVESEN, the NORBERT DENTRESSANGLE group received on November 26th the European Commission’s Road Safety Excellence Award.
The logistics company has been awarded by the European Union vice president and transport commissioner Jacques Barrot himself.

In terms of sustainable development, the reduction of the emission of greenhouse gases and sustainable and eco-friendly buildings is one thing, road safety is another one.

Thumbs up !

detailed info about the award

The subject will be widely debated at the coming SITL next March.

On one side, from a European point of view, the new locations for logistics and supply chain investments are further East. Poland, Roumania, Czech Republic, Slovakia are part of these new promising locations. Investors such as PROLOGIS, PANATTONI or PARKRIDGE are developping massive logistic centers overthere.

On the other side, from a more Frenchie (!) point of view, the new promising locations within France are further West. A new forum about the subject will take place next week in Paris La Défense: EXPANDI and we’ll see that locations such as Le Mans, Nantes Saint-Nazaire, Angers, Laval and Angoulême are among the next locations for good investments in logistics. Employment and consumption are there to foster future investments. I talked with Philippe ROUGé, Development Director of GSE last week about the subject. He gives his feelings (sorry, in French only).

See you there ? SITL ? EXPANDI ?

According to the very interesting report issued by PROLOGIS (see previous post), France’s prototypical modern distribution facility spans at least 10,000 square meters of floorspace with ceiling heights of at least 9 metres, load-bearing floors to support at least 5 tons per m², one loading dock for every 1,000 m², and truck-turning areas of at least 35 metres.

This is the prototypical distribution facility and if the facility is also quadri-modal, it becomes the “ideal” distribution facility !!!!!!!

waaww, that is a title for sure. It’s not mine, it is the title of the very very interesting report about France’s Distribution and Warehouse markets released by the developer PROLOGIS (the one).
A dozen of pages that give you an extremely good overview of the market in France, history included. I found very good information in it and I can only recommend it at 100%.

One of the conclusions says:
“With its central location and good transportation system, many companies have incorporated markets in France into their pan-European distribution networks. Property investors have profited handsomely from this trend, and can look forward to continued healthy returns in the future.”

I noticed more particularly 4 things :
1. France’s industrial sector accounts for about 13% of the French GDP, about the same as it was 20 years ago despite the global trends toward outsourcing and offshoring. (and that is the case in Western France, where industry is doing really well along with services)
2. France is a central location to include in any pan-European distribution/logistics strategy, connecting the Northern European ports and population centres in the Netherlands and Belgium with those in Southern Europe. (and that is the case with Western France, ideally located for the distribution of UK, France, Spain and Portugal markets.)
3. France did not have any logistics property markets until the early to mid-1990s.
4. France has an ample supply of developable land with low fluctuation in terms of regular market cycles (due to the fact that local municipalities tightly control pricing and release for sale and development). (and that is the case in Western France with land at attractive prices going from 5€/sq.m to 25€/sq.m.)

Get the report => click here

The famous bottles of Cognac are shipped weekly from Cognac to the port of Le Havre by ……. train !
2 trains of 30 cars transport the Cognac bottles every week. The bottles are then shipped to Asia.
The trains come back to Cognac with wood and goods for the retail market.

good to know !!

This is it ! IKEA finally received approval for the implemantation of a logistics platform in Fos-sur-Mer near Marseille. The site should employ about 500 persons within 3 years time.
With a platform in Lyon and Marseille, the Eastern south of France is well supplied by the Swedish group. Further West, there is still room for another platform.

The western part of France hosts about 5 stores among which the store of Nantes which is the 2nd in France in terms of sales (2.7 millions of customers per year !). Our Atlantic seaports (Nantes-Saint Nazaire and La Rochelle) can easily ship and receive the goods with feeder lines from Northern European ports. The Swedish group is welcome anytime !

Brigitte MICHAUD has received the prize for the logistics manager of the year last week in Paris. The award was given during the Assises de la Logistique.

Besides the fact that it is a woman, there is another great news with this award, it is because the project that was carried out by Brigitte MICHAUD and her company (she is logistics manager of RECKITT BENCKISER) is just unique.
Everybody has been talking about it since a year now: the HECORE project is good news for modern logistics and environmental issues. It gathers 3 large companies (RECKITT BENCKISER, HENKEL and COLGATE) around a mutualisation of the transport, storage and order management.

Mrs MICHAUD has a sound background in the field of logistics. I was also impressed by the originality of the ceremony : a TV show animated by Marianne Kottenhoff (journalist at LCI) around big names such as GSE, PROLOGIS, NISSAN FORKLIFT et EOL.