Attractive location
Denmark's strategic location and advanced infrastructure make it a prime destination for companies looking to improve their supply chains. With a strong focus on transitioning to green practices, Denmark is at the front of an eco-friendly supply chain solution. The country has many access ports which include shipping from sea, land, and air.
According to the Ministry of Foreign Affairs of Denmark, “there are 25 ports with frequent international shipments…and a world-class digital infrastructure, enabling technologically advanced logistics and distribution services” (Invest in Denmark).
As a result, there is an increasing demand for logistics and warehousing in Denmark with e-commerce being the center for this growth. Additionally, there are low interest rates and modern facilities that are increasing this demand. “In total, Denmark has 69.1 million square meters of premises for warehousing, logistics and production facilities, and in the beginning of the fourth quarter of 2020, almost 1.9 million square meters was offered for rental or sale purposes” (Invest in Denmark). The demand for logistics and industrial facilities to accommodate for the rapid growth in e-commerce makes Denmark an attractive location for companies to enter business in the country.
Denmark supports a strong culture of innovation, with well-established tech and research hubs. Collaboration between government, academia, and industry encourages the growth of future technologies and smart logistics solutions like automation and AI-driven supply chain management.
Dramatic Change
Almost a year ago, the Danish government announced new portal regulations. They ended their universal service obligation (USO) on January 1st, 2024. This opens up competition between leading delivery firms and the chance for a global company to step in. The draft contains special regulations for shipments sent to small islands and blind people. A service tender will be introduced, but PostNord will handle the transitional phase. This move in Denmark is a hint that other postal operators around the world should prepare for an open Danish market.
While Denmark is not in the Eurozone, it is part of the EU's single market, giving companies in Denmark access to over 500 million consumers without customs or tariffs.
In summary, Denmark’s high-tech logistics, skilled workforce, and focus on sustainability make it an attractive location for companies to set up logistic operations and there are plenty of marketing opportunities.
Image: Unsplash
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