By Karen E. Thuermer, AJOT Oregon-based Columbia Sportswear is well known as a retailer of quality outwear and sportswear. Today the company distributes its products in more than 72 countries and 13,000 retailers. Despite Europe’s current economic situation, the European Union offers a market of 450 million consumers. This fact plays a big role in the company’s business, particularly given Europeans’ passion for skiing, hiking and outdoor sports. Consequently, the large and diverse European marketplace is critical to the company’s growth. Today, the company serves 1,500 retailers in 38 countries in Europe. To serve this diverse collection of countries, the company operates a distribution center (DC) in Raillen-court-Sainte-Olle near Cambrai, France in the northern region of Nord Pas de Calais. Its European headquarters is in Genève, Switzerland, and there are offices in London, Frankfurt, Munich, Strasbourg (for finance), Milan, and Brussels. It is currently contemplating a location in the Nordics. “We operate with a three types of networks,” says Vincent Liagre, distribution manager for the European operation. “Those are integrated representatives, agents, and distributors. Site Selection Process Northern France serves the company well for its DC operations. Prior to locating a its dedicated DC in Cambrai in the late 1990s, a third party logistics operator (3PL) handled Columbia Sportswear’s distribution from a center in the Netherlands. During that time, Columbia’s European sales volume grew so rapidly that the 3PL had to spread the warehousing operation between three buildings. Columbia Sportswear executives soon realized they needed its own DC operation to serve the whole of Europe. Among Columbia Sportswear’s criteria for site selection was proximity to key customers and ports; a highly skilled labor force; warehouse cost; the ability to draw employees from the same labor pool; good relations with local authorities, customs and regulators; quality construction, site availability and ample land; and positive experience of similar companies in the region. “Most important was the availability of good labor and a sufficient labor pool,” Liagre remarks. Initially 12 countries were selected, which was then whittled down to four, then six regions and eventually three. The four considered were Nord Pas de Calais (Northern France), Limberg/Liege (Belgium), Prague (Czech Republic), and Valencia (Spain.) According to Liagre, the Nord Pas de Calais site was attractive because it met all of the above requirements and was reasonably close to important seaports; had no high power lines; was flat land, and offered available building permits; public transportation; and incentives. Above that, France’s regulated 35-hour work week, which includes a system called modulation, allows employees to work fewer hours during off seasons and more hours during busy seasons. As long as Columbia Sportswear employees work within that range and do not exceed the annual number of work hours, the company does not have to pay overtime. Transportation Considerations Besides the good work ethic in the Nord Pas de Calais region, the site’s location is close to Brussels, Paris, and Luxembourg, which are important hubs for air freight. It is also near the Ports of Dunkerque, Zeebrugge, Le Havre, which are frequented by steamship rotations and focus on river barge. “Proximity to seaports is very important to us,” Liagre says. In fact, the Raillen-court-Sainte-Olle site is 80 miles for the Port of Dunkerque, a port of call for CMA CGM, the French steamship line that Columbia Sportswear Europe utilizes. “CMA CGM offers a full rotation from Asia to Dunkerque,” Liagre remarks. According to Liagre, 95 percent of the items coming into the DC are imported from Asia, particularly Vietnam, China, and other countries in Southeast Asia. Utilizing this carrier is important to Columbia Sportswear. “We seek a loyal commitment [to space] over cost,” he says. “We want to use a ca