Leipzig-Halle as a central distribution site
With a central distribution site, one single location supplies a large area that usually covers multiple metropolises or entire countries. A central distribution strategy is usually very cost efficient, as staff and operations are only required at one location and economies of scale come into play. Where possible, it is used by almost all branches. Common entities involved in this area are wholesale and retail companies in the non-food sector as well as industrial companies who supply all their customers with products from one location.
Typical Investor Requirements at Central Distribution Sites
- Central location in the area to supply
- Good motorway connections for quick and reliable delivery to customers
- Ideally with location near a supra-regional motorway junction in the four cardinal directions
- High availability of land parcels to build large central warehouses
- Affordable property prices
- Setup support for large logistics investments
(Source: Logistikregion Leipzig-Halle - Standortgutachten der Fraunhofer SCS)
The comparison of location supply and investor demand shows that the Leipzig-Halle regions has very conducive factors. The motorway connection is excellent; the costs for labour and property is at a moderate level. Numerous large properties are available in the direct vicinity of the motorways, which allows for quick and efficient distribution. The setup support from communities and economic development agencies is very well established here; this allows for quick and uncomplicated development to be carried out easily even for large distribution centres.
However, the central location may not be sufficient for Germany-wide distribution. This criterion is largely dependent upon the individual distribution focus of the respective setup, thus it can provide the ideal parameters for certain investors. For example, for serving only eastern Germany or for supplying to Germany, Austria, the Czech Republic and Poland together, Leipzig-Halle is very well suited regarding its central location as a supplying region.