However, DEL Brussels Hub could not expand further more to support such rapid growth volume of shipment. To remind the leader position, DEL needed additional starting and landing capacity In Central Europe. Nowadays, rising transportation and labor costs in the manufacturing centers in the coastal regions of China also have manufacturers eying Eastern Europe and pulling manufacturing back to Europe from China and India because container costs and fuel costs favoring local production. The trend is evident with a number of companies who are now setting up factories In Eastern Europe to move at least part of their manufacturing back.
Example: Wall-Mart buys most of its plastic products from China. Those products are made with oil, and manufacturers are experiencing huge increases in material costs. They also have increased transportation costs. Those companies are having huge difficulties and it will be Interesting to see where the new balance will be found. Thus, logistics providers could benefit greatly If Europe would adopt a central alarm raffia control system rather than continuing the current practice of each country operating it own system.
The reason why DEL make the decision to invest so heavily in Leipzig and how can DEL become world-class logistic company to expand Europe boundaries market of Leipzig as the below factors: Absolute Advantage: Location: Leipzig located In the heart of Europe which fulfills DEL selective conditions to successfully handle the ever-increasing volume of shipment. It also offers excellent regional Ana Intercontinental connectively From Leipzig, ten growth n markets In Central and Eastern Europe are within easy reach by air, road and rail.
The ability to combine these three key modes of transport as a “trip-modal” hub guarantees economic and CEO-friendly connectivity to short and medium-range destinations. Leipzig has benefited from its advantageous position within the trans-European transport network. As Leipzig location at the crossing of two continental trade routes , roads, railways and air routes are all being improved to meet DEL request to expanded European Union. [pick] Socio-culture – Unemployed rate in Leipzig Refer to the unemployed rate table (Figure 2), Leipzig has high unemployed rate in Germany even that is 2nd large city which on behind of Berlin in Germany.
As DEL hub should open up new career prospects for many people. Thus, that is important absolute advantage for Leipzig which can reduce the cost for invite skill/UN-skill labor from other countries office. According to my research, an estimated 2,000 employees were working at the hub in 2008. Nearly 90% of the newly employed workers come from the region around the airport. Two-thirds of them were previously unemployed. It can be benefit to increase for Germany Citizen’s living standard and DEL can provide opportunity to those young citizens to increase knowledge in the various logistics and IT professions at the airfreight hub.
Political Factor DEL Brussels Hub could not expand further for Europe countries due to night-flight restricted by Brussels government. Leipzig can get the advantage which can meet Dell’s requirements: Establishment of additional flight capacity and virtually no restrictions by region government policy for night-flight. Leipzig Hub can be 24 hours operation with takeoffs and landing 365 days a year which giving DEL customers and employees maximum long-term planning security and that is competitive advantage in logistic industry.
As expectation of Leipzig Hub can support around 1,500 tons per night but by 2012 teller Is set to rise to more tan u tons. It wall De competitive advantage across for international logistic industry if compare for most competitor could not afford such huge amount of shipment by non-stop operation. Advance Technology “Leipzig is the first DEL facility able to meet its need for electricity, heating and cooling energy too large extent and self-sufficiently.
This is ensured by a generation unit for combined heat and power generation, together with 1000 square meters of solar cells on the roof of the hanger workshop for the generation of electricity from solar energy. “[l] As the above modern technologies, the Leipzig Hub is focusing on the use of renewable energies to enhance energy efficiency in the buildings and systems. It can show up the method to get balance between economic success and socio-ecological responsibility. The Hub comprises of a distribution centre, an aircraft hanger, apron, tank station and administration building for process shipment sorting by day and day.