Royal Enfield recently announced the opening of a new distribution logistics center in the Netherlands, trying to reduce the delivery times of its frames within the European Union. Even the Indo-British brand is considering opening more facilities of this type in countries such as France or Germany.
The incredible expansion of the firm in recent years forces it to make decisions of this type on a strategic and commercial level. The new distribution logistics center It should strengthen the distribution network that the brand currently has.
The new distribution logistics center has had an initial investment of 500,000 euros
According to the latest reports issued by Eicher Motors Ltd, the business group to which Royal Enfield belongs, the brand would have created this distribution center in order to reduce the commercial dependence it currently has with the United Kingdom.
Geopolitical and economic situations, such as the well-known Brexit process, produce undesirable effects on Royal Enfield's commercial operations, not only at the local level. This type of interference also affects the brand's relations with the rest of the countries on the European continent.
In statements of Arun Gopalinternational director of Royal Enfield, to Visor Down, he commented: “Brexit has made it difficult to transport materials to and from the UK to Europe… Additionally, the UK is not geographically close to some parts of Europe, so we needed a warehouse that could service that region more effectively.” ”.
For now, Eicher Motors has invested 500,000 euros in its new distribution logistics center in the Netherlandswhich they have named “Royal Enfield Europe BV”. But the brand's intention is to expand this distribution system with new locations spread across the continent. Although at the moment it has not specified where this type of facilities would be created, everything points to France and Germany as possible candidates.
On the other hand, the brand emphasizes that the rampant inflation that Europe is experiencing, as well as the tensions suffered in the Red Sea trade route, cause shipments to be delayed up to 30 days, something that they will try to alleviate with this new logistics distribution center.
