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.

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

I know some cross-dock centers in Western France able to welcome transporters around the city of Cholet. Buildings for cross-docking are quite simple, yet who knows exactly what cross-docking is ?

I found this good explanation from Professor Kevin R. Gue of the Naval Postgraduate School:
Read the rest of this entry »

This is the nice story of a carrier who knows what he wants and how to obtain it.

The DERET group has obtained the approval of the city of Laval and the county council of Mayenne to develop a logistic platform (rail and road) at Argentré (on the eastern side of Laval, in between Rennes and Le Mans) and above all to have two major road constructions:
. a highway exit
. a rail connection

DERET group will use 60ha first. The group is located in Orleans (further east) and is strongly developping itself. more information : http://www.deret.fr/

Good combination of industry and local authorities !

Supported by the British investor Gazeley, Conforama chose Beaulieu sur Layon near Angers to set up a 31 000sq.meters logistic platform. The transport and logistic company is Kuehne + Nagel. the Kuehne + Nagel group is closely involved with Conforama and supports the development of the retailer’s new supply chain strategy.

The building should be ready by mid 2008. The investment is about 14.5 million euros and will help Conforama to distribute the Conforama stores of Western France.
This regional platform is part of the 5 regional platforms of Conforama in France.
This is good news for Western France.

More info about Gazeley
More info about Kuehne + Nagel
More info about Conforama, a PPR company, second largest retailer worldwide and no. 1 in France, specialised in furnishing and home appliances.

A very special international conference is taking place this week within Western France, in the sea-side resort LA BAULE. It is the LA BAULE World Investment Conference. The theme for this year is green technologies. Some 500 CEOs of around the world will be here. As far as logistics is concerned, there will be people from Gazeley and Prologis who will talk about environment and logistics platforms.
Applied to logistics, the theme of environment makes me think more precisely about a very special French cluster (or club) I know, called the “club demeter” that is especially focused on environmental issues applied to logistics and that gathers industries, carriers, investors and transporters. The organization and working process of this club is exemplary and I wish this could be extended to our regions.
more info about the club demeter
more info about the LA BAULE WIC

If everything goes well, about 500 jobs should be created by 2012 within the 33ha logistic park GECINA just got from the “communauté de communes” of Sablé sur Sarthe near Le Mans. The Ouest Park is located in between Le Mans and La Flèche, down south of Le Mans near the highway A11 on the western part.