The entire supply chain network can include anything from suppliers of raw material and parts to logistic service providers and distributors. The supply chain comprises all the exchange of materials and information from the first raw materials to the delivery of the final product to the customer and back. Thus vendors, service providers and customers are all links in the supply chain and companies are dependant on the competitiveness of the entire chain.

Therefore in an environment of increasing competition and more demanding customers, multinational companies cannot escape to implement “Supply Chain Management”. Taking cost-saving measures in the supply chain would include reorganization of processes and product flows in order to reduce inventory and avoid large stocks of obsolete goods. An efficient supply chain management structure relies on well-defined distribution channels and latest technology to facilitate rapid response between customer, contractor, management, supplier and distributor. If a company cannot distribute materials with speed and efficiency, then the supply chain breaks down and delays occur.

Important factors for an efficient supply chain are:

	Use of multiple entry points and warehousing sites, cross-docking and transit merging. These services can only be offered by truly global or pan-European service providers;
	Investments in linking company IT systems to the systems of service providers;
	Leveraging global purchasing power;
	Further reduction of transportation costs by switching from providers offering only a single type of service to providers offering thefull range.

Adjusting the needs of the partners in the chain requires more exchange of information and will lead to smaller deliveries, with higher frequencies to a larger amount of customers. Therefore, being in a central location and a “high tech” logistics environment as The Netherlands, can fulfil these important conditions.