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Meeting Logistical Requirements

Kleijne's thrust is courting these specialty food products makers, along with the packaging and ingredients suppliers that support the Netherlands' important food processing sector, along with food logistics operations. One key advantage the Netherlands has is its logistical logic. The area boasts 400 specialized agricultural/food logistics providers, which operate refrigerated trucks and warehouses, along with a central location to serve Europe's 800 million people. "Most food companies considering a European center of operations put the Netherlands on the short list," says Kleijne. "You can be anywhere in Europe within 12 to 24 hours."

This logistical advantage is particularly important as concepts like postponed final assembly migrate from other industries to the food sector. Processors like to be able to decide at the last possible moment what final product to make from the raw materials. Tri-Valley Growers, for example, a giant San Ramon, Calif., canning co-op, recently reengineered its business processes to can its tomatoes in a simple, crushed version that can later be turned into salsa, ketchup or other products as the market demands.

Logistics considerations have special meaning for the food sector, where perishability often enters the equation on either or both the raw material and finished goods ends. "We're working with a bakery now, and they can have their flour delivered by rail," says Michael Henderson, director of location analysis for realtor Cushman & Wakefield in New York. "It's the finished product that's more perishable. The economics of this varies depending on the type of food, but you're always measuring the cost of bringing in the raw materials against the cost of shipping the finished product."