The conventional distribution networks, both in Europe and North America,
relied on a system of regional distribution centers. Over the last 15 years many
barriers for cross-border transactions between countries within the EU and
NAFTA have decreased. As a result, many companies consolidated their distribution
operations into one central Gateway Distribution Center (GDC): in Europe,
typically a European Distribution Center (EDC) covering all European Union
countries and, in North America, a large distribution center servicing a part of the
continent, often divided by coast. This meant longer distances to the final
consumers and in some market segments, local market demand has led companies
to opt for Regional Distribution Centers or RDCs.