• European Logistics Survey by LCG, rate Denmark as number one and Sweden as number three within logistics and distribution in Europe.

• There are non-stop flights to 80 European cities and daily truck connections to more than 900 cities. Copenhagen Airport boasts the shortest goods transit time of all European airports combined with the lowest distribution and transport costs.

• In handling more than 350,000 tons of cargo and over 17 million passengers yearly, Copenhagen Airport is considered to be the north European hub, and it is one of the major transfer airports in Europe. It serves 145 destinations world-wide, of which 105 are European. Copenhagen Airport is served by more than 60 international airlines.

• Denmark has the lowest telecommunications costs within the EU According to an OECD report from 1995.

• Goods arrive at recipients in the region no more than 2-3 days after arrival at the major ports. This is possible because the Port of Copenhagen has status as a base port.

• The region’s Customs & Excise Authority is the most flexible in Europe, and on-line EDP makes VAT procedures easy to handle.

• Denmark is number one in Europe in terms of computer literate employees according to the "World Competitiveness Report" from 1995,

• The combination of competitive labour costs and a high productivity level makes the workforce one of the most cost efficient labour forces in Europe.
  
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Oresund - an Ideal Geographical Location

Today Europe is being divided into regions, and The Oresund Region has a strategic location as the gateway for the north European region which comprises northern Germany, the Nordic countries, the Baltic countries, and partly Poland and Russia. This is a market with more than 250 million consumers. Historically, the region, and in particular Denmark, has good links to the dynamic economies of the Baltic countries and Russia, which are the new growth regions within Europe. This puts the focus even more on The Oresund Region.

Many international companies have chosen The Oresund Region as their Nordic distribution centre, and today Copenhagen is the number one logistics and distribution centre for northern Europe. With the huge investments that are being made to further improve the infrastructure, there is no doubt that the region will maintain its position as the centre for distribution in northern Europe well into the future.

Many call center projects are being set up in Europe at present. These projects are typically characterised by use of advanced technology and professional expertise. Call centers are used for sales, telemarketing, market research, order reception, customer support, hot lines, telephone banking, etc. Increased focus on logistics and outsourcing has made this an international growth area. It is an established fact that the quality and flexibility of call centers in the region are unsurpassed.

An example:

"We have a delivery time of about one week for our products from Germany, but our regional warehouse can provide next-day delivery all over the Nordic region. We can really tell that our customers appreciate this improvement in service," says Bertil Andersson, BASF Nordic logistics manager.

BASF used to have warehouses at their factories in Germany and in Finland, Norway, Sweden, and Denmark. Today, this giant chemical concern has a single central Nordic warehouse in Denmark

"We chose the Copenhagen region as the optimal geographic location for a Nordic regional warehouse. We’ve found the best balance here between service and costs, and a strong infrastructure. We have a shipping agent located right beside a railroad and who also has an extensive distribution network all over the Nordic region," says Andersson.

The Nordic warehouse is BASF’s first regional distribution center, but over the next few years BASF will be setting up ten regions in Europe following the same model.

Europe’s Shortest Lead Time

Whether your corporation wants to set up its own distribution or call center or utilise an existing one, The Oresund Region is worth a look as it offers one of the world’s most advanced telecommunications infrastructures. The region’s physical infrastructure is also in prime condition after billions of dollars were invested in highways, bridges, high-speed trains, airports, and other facilities in the 1990s.

At the same time, a wide-reaching and competitive transportation industry has grown up around the extensive export industry. As a result of this growth, the region has the shortest lead times in Europe. Goods can be sent anywhere in Europe - from Nord Kap in northern Norway to Gibraltar in Spain - in less than three hours by plane or 72 hours by truck. There are nonstop flights to 80 European cities and daily truck connections to more than 900 cities. Copenhagen Airport boasts the shortest goods transit time of all European airports combined with the lowest distribution and transport costs.

Some of the corporations which have decided to locate an international distribution center, call center, and/or headquarters in Denmark: Ascom, BASF, BMC Software, Bonnier Publications, Dell, DHL, Diners Club, Harman, Hulsink Direct Marketing, IBM, Indiana Tube Denmark, Industrial Parts Depot, Massey Ferguson, Olivetti, Oracle, Quelle, Rhône Poulenc, Robert Bosch, Roland, Saint Gobain, SAP, Sony, and Synthélabo

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European Logistics Index

In recent years companies have focused more and more on logistics and distribution as competitiveness parameters.

International surveys such as the World Competitiveness Report 1996, IMD Lausanne, and the European Logistics Survey by LCG, rate Denmark as number one and Sweden as number three within logistics and distribution in Europe.

European Logistics Index 1995

	Electronics	Pharmaceuticals	Foodstuffs	Rank
Denmark	76	74	79	1
Holland	105	63	67	2
Sweden	78	95	100	3
Germany	118	82	93	4
Belgium	79	99	123	5
France	140	84	99	5
Ireland	102	173	108	7
U.K.	108	126	133	8

Source: The Danish Ministry of Business and Industry

The European Logistics Index measures the efficiency within lead-time, total logistics costs and safety stocks, all of which are factors that have great influence on a company's competitiveness. Lead-time is the total time-span from receipt of an order to delivery at the customer site, and it measures efficiency in order processing, stock handling and distribution. Total logistics costs, apart from measuring the total efficiency, are an indicator of the general cost level, e.g. interest levels, wages, rent levels etc.

Safety stock is an indication of the general quality and efficiency in the chain of supply and delivery, which decides how much stock is necessary to maintain the delivery service required.

Denmark and Sweden rate highly in all these categories.

The European Logistics Index is based on personal interviews with 96 market-leading European companies.

It is therefore worthwhile considering carefully where to locate a regional or European distribution centre. The biggest market or country may not necessarily be the best choice.

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Copenhagen Airport

In handling more than 350,000 tons of cargo and over 17 million passengers yearly, Copenhagen Airport is considered to be the north European hub, and it is one of the major transfer airports in Europe.

The airport has a central location only 8 km from downtown Copenhagen and 15 km from Malmø in Sweden.

It serves 145 destinations world-wide, of which 105 are European. Copenhagen Airport is served by more than 60 international airlines.

Some of the major advantages are:

- The fastest international cargo transfer time in Europe - 3 hours. In other major airports it is 6-10 hours

- The lowest distribution and transportation costs to most of Europe

- Overnight deliveries to more than 80 European cities via non-stop flights

- Direct flights to most of the worlds business centres, including New York, Chicago, Tokyo, Beijing, Hong

Kong, Singapore, Rio de Janeiro and New Delhi

- A major cargo centre with more than 20 major IATA freight agents

- All the big international air courier companies are represented at the airport, with some of them already using Copenhagen as a hub

- 24-hour operations - including Customs services

Based on the expected growth, and in order to maintain its position as the number one airport in Northern Europe, an investment plan totalling $1 billion has been formulated. Part of the expansion plan will seek to improve the cargo facilities by establishing new cargo areas and new terminal facilities.

In 1998 the airport were connected to the European railway network, and in year 2000 a bridge and tunnel link between Copenhagen and Sweden will be connected to the airport offering direct road and rail connections to the rest of the Nordic countries as well as the rest of Europe.

The north European hub position has been further strengthened by the strategic alliance between SAS,

Lufthansa, Air Canada, Thai Airways International, United Airlines and Varig.

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Telecommunications

Effective, low cost telecommunications are of vital importance for logistics and distribution. And once again the region ranks among the best in the world. Denmark and Sweden have some of the lowest telecommunications costs within the EU. The region offers one of the world’s best workforces in terms of computer literacy.

Furthermore, Denmark is the European leader in terms of the implementation of EDIFACT-based EDI, which is the recognised European standard.

The fact that the countries have a nation-wide optic fibre network with 99% coverage means that there is world-class facilities for telecommunication services, also to eastern Europe. This consolidates the image of the region as a technological leader.

(!too much on Denmark)

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Transport and Warehousing

All the major international forwarders conducting business in Europe are represented in the region. This means that companies can always be sure of quick and effective coverage of the whole of Europe. The geographic location makes day-to-day delivery service by truck possible in an area from Frankfurt in the south to 50 km north of Oslo/Stockholm in the north. There are daily departures to hundreds of European cities, and there is an effective coverage of the Baltic countries, Poland and Russia.

The major international forwarders in the area offer all kinds of services within logistics, transport and distribution, such as:

-Central warehousing with optimal control systems and bonded facilities

-Value added services, such as repacking facilities, integration, repair, inspection, technical support etc.

-Optimal lead-times

-Low freight costs

-Environmentally friendly distribution, including recycling systems

In the greater Copenhagen area alone there are more than 140 logistics and distribution centres offering logistics services. By combining air, sea, rail and road transport, the optimal solution is always available.

The use of bar codes, satellite controlled transport and on-line EDI are all part of the first-class distribution services offered.

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The Port of Copenhagen

The Port of Copenhagen has a major free-port facility, and coupled with its strategic location it has the advantage of being a cost saving distribution centre for Scandinavia and the Baltic Region.

In the free-port area it is possible to assemble and carry out repairs, production etc. while deferring the payment of customs duties and VAT on stored goods until shipment has been made to the final destination.

With well over 185,000 square metres of bonded warehouse space, and with even more undeveloped land available, the Copenhagen Free Port can accommodate any requirements for warehousing. Tailor-made bonded warehouse facilities are available for long-term lease.

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In order to operate a central European warehouse, a company only needs a single VAT registration within the EU. The region’s Customs & Excise Authority is the most flexible in Europe, and on-line EDP makes VAT procedures easy to handle.

Denmark and Sweden are in the upper end of the European average tax rates, and salaries are therefore also quite high. However, from a corporate point of view it is important to note that a company's contribution to the social system is limited to only a few percent of the wages themselves! This means that compared to other European countries, where social contributions can be up to 50%, the region’s wage level is very competitive.

The very competitive level of wages, combined with a well educated, flexible, efficient and highly productive work force, makes The Oresund Region an excellent choice for companies interested in obtaining a high return on investment.

Denmark has a special tax regime for expatriates. Expatriates who work in the country for a maximum of 5 years are taxed at a flat rate of 25% for the first 3 years!

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The combination of competitive labour costs and a high productivity level makes the workforce one of the most cost efficient labour forces in Europe. The flexibility of the workforce is another major advantage of setting up in the region. The labour unions and employers’ associations operate under a broad-based mutual understanding, adding to the regions stability is all business aspects.

There are no restrictions on night and weekend work. Businesses are permitted to operate 24 hours a day, seven days a week, 365 days a year without any restrictions. Also, hiring and firing regulations are more flexible than they are in many other countries in Europe.

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