Fragmented Shipping: When Is It Worth It?
A central European fulfillment center can transform your international distribution. But when is this approach truly the best choice?
For companies outside Europe looking to serve the European market, a logistics dilemma often arises: how do you efficiently get products to dozens of different customers, retailers, or distributors spread across the continent? The traditional approach – finding a local supplier per country – sounds simple but often leads to fragmented processes, unpredictable costs, and loss of control.
Fragmented shipping via a central European hub offers an alternative. You send your bulk production to one location in Europe (for example, to Service Bureau Jansen in Eindhoven), and from there we handle distribution to all final destinations. But this approach isn't suitable for everyone. In this guide, we explain when fragmented shipping adds value, and when you should consider a different strategy.
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The Problem with Traditional Decentralized Distribution
Imagine: you're a tech company from the US or Asia looking to grow in Europe. You have customers in Germany, France, the Netherlands, Spain, Poland, and the United Kingdom. The first reflex is often to find a local distributor or logistics partner per country. What can go wrong?
✗ Challenges of Fragmented Local Distribution
- No quality control: Each local partner maintains their own standards. Product A arrives perfectly in Germany, but damaged in France because packaging processes differ.
- Fragmented communication: You must coordinate with 6 different contacts, each in a different time zone and language. When something goes wrong, it's unclear who's responsible.
- Inconsistent lead times: Your German partner delivers within 3 days, your French partner within 10 days. This makes predictability difficult for your end customers.
- Hidden costs: Local VAT registrations, currency conversion costs, differences in invoicing systems – it all adds up. Budgets never match.
- No central tracking: Where are your products? You need to check 6 different systems, each with its own login and format. Real-time overview? Forget it.
- Quality differences: Some partners are professional, others aren't. You only discover after months that partner X labels products incorrectly or ships in wrong order.
These problems become exponentially worse as you expand to more countries. With 3-5 countries it's still manageable. With 10+ countries it becomes a logistics nightmare.
How Does Fragmented Shipping via a Central Hub Work?
Fragmented shipping flips the process. Instead of bulk shipments to multiple local partners, you send everything to one central European fulfillment center. From there, your inventory is fragmented and distributed across all final destinations.
The Process Step by Step
You produce your products (for example in the US, China, India, or Turkey) and send one large container to our fulfillment center in Eindhoven, Netherlands. This is one customs declaration, one shipment, one contact point.
We receive your goods, perform quality control (visual inspection, counting, testing if desired) and register everything in our WICS warehouse management system. From this moment, you have real-time insight into your inventory.
Based on your distribution list, we sort products per final destination. Each package receives the correct labels (multilingual according to local requirements), customs documents (if non-EU), and packaging according to your specifications.
All packages go out simultaneously (or according to your schedule) to final destinations. Within EU usually within 2-3 business days, non-EU depending on destination. You have one central tracking portal for all shipments.
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When Is Fragmented Shipping Worth It?
Fragmented shipping isn't a one-size-fits-all solution. It works excellently in specific scenarios, but also has drawbacks. Here's an honest assessment:
✓ When Fragmented Works
- You serve multiple European countries from a non-EU location (US, Asia, UK post-Brexit)
- Your products require consistent quality control before going to end customers
- You want one point of contact for all European distribution instead of multiple local partners
- Timing is critical – products must arrive simultaneously in multiple countries (launches, events)
- You have limited resources to manage multiple local partnerships
- Flexibility is important – you want to enable last-minute address changes or order adjustments
- You want central tracking & data instead of fragmented reports from local partners
✗ When Fragmented Is Less Suitable
- You only serve 1-2 countries – in that case, direct shipping is often simpler
- Your end customers are very dispersed with unpredictable volumes – local inventory is more efficient
- Products have short shelf life (fresh food, temporary fashion) – local production is better
- You already have well-functioning local partnerships with consistent quality and good communication
- Volumes are extremely high per country – dedicated local warehouses may be more cost-effective
- You sell direct B2C with next-day delivery expectations – decentralized hubs closer to end customer are faster
Benefits of Central European Fulfillment Hub
If fragmented shipping fits your situation, it offers significant advantages:
✓ Control & Quality
All products pass through one quality control point before going to customers. We check for damage, count quantities, and can even perform product tests. This prevents bad batches from reaching multiple markets.
✓ Cost Savings
One customs declaration at EU border instead of multiple. Bulk shipping to central point is cheaper than small shipments to local partners. No costs for multiple VAT registrations or local compliance per country.
✓ Speed & Timing
Products can be shipped simultaneously to all destinations. Perfect for product launches, trade shows, or seasonal campaigns where timing is crucial. No more phased rollout through different partners.
✓ Flexibility
Last-minute address changes? No problem, as long as packages haven't been picked up (and sometimes even after). Add extra destination? Often possible same day. This level of flexibility is impossible with multiple local partners.
✓ Central Tracking
All shipments in one system (WICS). Real-time updates, push notifications for deviations, export function for reports. You see at a glance where all your products are – not spread across 6 different portals.
✓ One Point of Contact
Problems? Questions? Changes? One phone number, one email, one contact person who oversees your entire operation. No more juggling between German, French, and Spanish partners who don't know each other.
Drawbacks and Considerations
To give an honest picture: fragmented shipping via central hub also has drawbacks. It's important to weigh these against the benefits:
⚠ Extra Handling
Products are handled twice: upon receipt at the central hub, and when repackaging for shipping. For very fragile goods, this can be a risk. Solution: special handling instructions and inspection upon receipt.
⚠ Lead Time to Hub
Before fragmented shipping can start, products must first reach the central hub. This can take 1-3 weeks from Asia or US. Planning is essential – but this is offset by the speed with which everything then simultaneously reaches Europe.
⚠ Single Point of Failure
If the central fulfillment center has problems (fire, strike, IT failure), all operations are affected. However: this risk also exists with local partners (actually multiplied per partner). We have backup protocols and insurance to mitigate this.
⚠ Not Always Cheapest
For very high volumes to one single country, dedicated local storage may be cheaper through economies of scale. The question is: what weighs more, absolute lowest cost or operational simplicity and control?
Hidden Costs of Fragmented Local Distribution
When comparing costs of fragmented shipping vs. decentralized distribution, watch for these often forgotten cost items with local partners:
Cost factors often forgotten:
- Management time: How many hours per week do you spend coordinating with multiple partners? This is internal FTE cost.
- Local VAT registrations: Per country €500-€2000 per year in compliance costs and accountant fees.
- Currency conversion costs: If you pay partners in different currencies, you pay 2-3% cost per transaction.
- Quality issues: What does it cost when wrong products go to wrong customers? Or damaged goods that must be returned?
- Inventory mismanagement: With fragmented local inventory, you often have too much at location A and too little at location B. This ties up capital.
- Lack of leverage: Small volumes per local partner means little negotiating power. Central hub has bulk advantage.
These "soft costs" are difficult to quantify, but definitely add up. With many of our clients, it turns out that central European fulfillment may have slightly higher per-unit shipping costs, but this is amply compensated by savings on the above items.
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Special Scenarios Where Fragmented Excels
Scenario 1: Product Launches Across Multiple Markets
You're launching a new tech product simultaneously in 12 European countries. All retailers must receive products on the same day due to a marketing embargo. With local partners, you must account for different lead times per country – some deliver on time, others late. With fragmented shipping from central hub, all shipments start simultaneously and you can calculate and plan lead times per country.
Scenario 2: Events & Trade Shows with Return Logistics
You're attending 5 trade shows in different European countries within 2 months. Materials must go to new location each time, and return after for reuse. Fragmented shipping makes this simple: materials return to central hub, are inspected/repaired if needed, and move on to next event. With local partners, you'd need 5x shipping + 5x return + coordination between partners.
Scenario 3: Samples to Potential Customers
Your sales team generates leads throughout Europe and wants to quickly send samples to prospects. With central European fulfillment, they can submit sample requests daily, and we ship within 24 hours to any European destination. With local partners, this would mean: first figuring out which partner is closest to prospect, instructing them to ship (possible language barrier), and tracking via their system.
Scenario 4: B2B Distribution to Retailers
You supply 50+ retail locations spread across Europe. Each location has its own orders and timing. Central fulfillment means: retailers can order centrally (via your system or via us), we pick/pack/ship per order. You have overview, retailers get consistent service, and there's no complexity of multiple local stocks that must stay synchronized.
How Service Bureau Jansen Handles Fragmented Shipping
At SBJ, fragmented shipping isn't an afterthought – it's our core expertise. Here's how we approach it:
Strategically Located in Eindhoven
Eindhoven is centrally located in Europe, close to Rotterdam port (largest EU port), and with direct connections to all major European markets. This means fast transit times and cost-effective shipping.
Complete Quality Control
Upon receipt, we visually inspect, count, and can perform product tests. Damaged items are set aside and reported. This prevents inferior batches from reaching your markets. Customers appreciate that problems are proactively identified.
WICS Warehouse Management System
Real-time insight into inventory, order status, and shipments. You can log in and see where all your products are. Automatic alerts for low stock, picking errors, or delivery issues. Export function for your own analytics.
Flexibility Until Last Moment
Address changes can be made until moment of pickup, sometimes even after if we're quick. Add extra destinations? Often still same day. Order cancellations? No problem if not yet shipped. This flexibility is impossible with multiple external partners.
Customs Expertise
For non-EU destinations (UK, Switzerland, Norway), we handle all customs paperwork. Commercial invoices, certificates of origin, HS codes – all automatically generated per destination. You don't need to think about it.
Value-Added Services Under One Roof
Beyond fulfillment, we also offer production, printing, procurement, and custom packaging. Want products labeled, kitted, or assembled here before being shipped? All possible. Everything under one roof = less coordination for you.
Want to Know If Fragmented Shipping Works for You?
Let's discuss your situation. We'll honestly advise whether central European fulfillment is the best solution for your business.
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Frequently Asked Questions About Fragmented Shipping
There's no hard lower limit – it depends on your specific situation. For companies outside the EU serving 3+ European countries, central fulfillment can already be advantageous due to simplified customs and one point of contact. We usually see the biggest benefit with 5-10+ destinations, where the complexity of multiple local partnerships becomes significant. We're happy to help analyze what makes most sense for your situation.
This depends on your location and shipping method. From China via sea freight: 4-6 weeks to Rotterdam port + 1-2 days transport to Eindhoven. From China via air freight: 5-7 days. From US (east coast) via sea freight: 2-3 weeks. From US via air: 3-5 days. We always recommend planning at least 2 weeks extra buffer for customs and unforeseen delays. Once goods are with us, we can start fragmented shipping to final destinations within 24-48 hours.
Yes, we offer both short-term and long-term storage. Many customers use us as their permanent European distribution hub: they send regular bulk shipments that we store, and we ship on-demand when orders come in. This works excellently for B2B customers with predictable demand. For seasonal products or one-time campaigns, we also do short-term storage (several weeks to months). Storage costs depend on volume and duration – contact us for a quote.
Upon receipt, we always perform quality control. If we discover damage, we photograph it, create a report, and inform you immediately. You then decide whether damaged items can still be shipped (with discount for customer), need to be repaired, or rejected. For damage during transport to Eindhoven, you can file a claim with your insurance or carrier – we provide the evidence. For damage incurred at SBJ, we are of course liable and have insurance.
We can handle return shipments for you. End customers can return products to our fulfillment center, we inspect them, and decide (in consultation with you) whether they go back in stock, get repaired, or disposed of. This is especially handy for companies without their own European presence – we effectively become your European returns center. Return costs depend on volume and processing complexity.
Yes, we do both B2B and B2C fulfillment. For B2C (e.g., webshop orders), we can integrate with your e-commerce platform, pick up daily orders, pick/pack, and ship with tracking to end consumers. We work with all major carriers (PostNL, DHL, DPD, UPS) and can choose the most cost-effective option per destination. Note: for very high-volume B2C with next-day expectations, decentralized fulfillment (closer to end customer) may sometimes be better – we'll honestly advise what fits best.