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Discussion paper;Executive summary;Four major challenges need to be mastered to establish a pan-European supply chain;Redesign of network;;Today;2-3 inventory levels;Combined scenarios will balance inventories and transport costs;The approach is to identify sequential changes based on the existing model and as is costs;In- versus Outsourcing;The ever increasing level of outsourcing reflects concentration on core competencies;Companies like the cost effects from outsourcing, but fear losing control;Outcourcing of transportation and logistics services provides infrastructure advantages;Four key success factors need to be ensured in advance: Never outsource operational problems to service providers;Consolidation of supplier relationships;The goal of enhancing supplier relationships is to reduce labor costs, ensure shared resources and improve productivity;Establishing mutually beneficial and long-term partnerships calls for trust and transparency;An uniform and consistent methodology is a must to consolidate pan-European supplier bases;Best practice for tendering process;Improvement opportunities can be realized by initiating a series of actions;The savings estimate for warehousing is based on a review of each single warehouse;“Should costs” are estimated by conducting a detailed review of each contract, activity and invoice practice;Benefits;Savings of more than 10% can be realized by establishing a pan-European supply chain;Warehouse consolidation is a key driver to reduce inventories;Fixed storage cost drivers cover the defining criteria of physical operations such as size and location
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