Analysis of facility relocation strategies

The biggest myth of the new economy is that location no longer matters. Companies should be able to point local regulators to specific articles and codes in relevant laws regulations and be able to provide evidence of how they are in compliance with the respective articles.

What medium should be used to communicate with employees? Early communication can allow companies to engage local labor authorities to provide assistance during a public relocation announcement. Specific action taken by a company undergoing relocation is largely dependent on the reason for the move, distance of the relocation, and internal company practices.

For example, the electricity supply, sewage system, and waste disposal may be insufficient and may require a substantial investment to upgrade. During this time you have proven your value over and over again. If there is sufficient real estate to expand, the existing location has a good work force, and the business climate is competitive, then the existing site should be a very attractive option.

There are several factors, which determine the location of facility among them competition, cost and corresponding associated effects.

For commercial success, and competitive advantage following are the critical factors: These will often drive the dollar amount value and terms of economic development incentives. Furthermore, it enables healthcare firms to identify equipment that may be HIPAA compliant when used or serviced.

Analysis of facility relocation strategies is of cardinal importance for any business that its production units or productive units be correctly located.

A final compensation plan would be drafted by a designated task force leader and submitted to management for consideration, providing employees a channel to feel directly involved. Education, experience and skill of available labor are another important, which determines facility location.

The advance preparation of a realistic business growth plan is crucial when evaluating the potential impact of economic development incentives. Factors Influencing Facility Location If the organization can configure the right location for the manufacturing facility, it will have sufficient access to the customers, workers, transportation, etc.

Securing and relocating computers, equipment and assets critical to business operations requires coordination from your employees and a team of resources dedicated to the transition. This continual evaluation of facility location strategies gives birth to facility relocation strategies.

Should You Stay or Should You Go? Evaluating Operations Expansion Options

Planning — a dedicated team from throughout the company including senior management must be assigned to control all aspects of the move. Production inefficiencies often lead to a drop in customer fill rates, lost sales and customer dissatisfaction.

This is especially important if inventory is built-up in anticipation of the move to ensure materials are available for additional production or sale; Communication with customers is essential so that they are aware of the upcoming strain on resources. Opportunity for government incentives. Proximity to key geographic markets — Reducing the distance of product to the key markets can affect speed, cost, and service.

They may be accommodating if they are well informed. Going into the process with eyes wide open, the right internal and external project team, and key objectives identified at the outset will position the company for an excellent outcome.

Significant time and budget is required to ensure systems can be successfully transitioned and restarted in the new location.

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Determining the nature of a move Identifying the nature of the move is essential to determining a relocation strategy. Being able to serve clients from a quality and cost standpoint is critical. Companies should assess whether this is feasible considering existing capacity constraints and available working capital; Parallel operations — due to the potential problems that may be encountered at the new location, companies should consider running parallel for a period of time, if possible, until the new location is properly structured.

Proximity to key geographic markets — Reducing the distance of product to the key markets can affect speed, cost, and service. If it is not correctly located, new locations must be considered. Companies do not want to put themselves in the same predicament that led to the need to locate a new facility in the first place.

Companies should not only consider the impact on the government relationship, but also be aware of how damaging a relationship with a certain government agency may impact boarder relationships in the jurisdiction. Most believe that as our business world becomes smaller due to technological innovation, boarders of regional and international industry will continue to disappear, business cycles will continue to speed up and the world will become a huge homogenous market place market place.

This factor must be thoroughly evaluated and planned for to ensure that there is very little to no impact to customers or the business.

These factors are can be divided into primary factors and secondary factors. Many unbudgeted costs may emerge as the move progresses if not adequately managed. The public announcement should also reveal compensation plans and any incentives that will be given to employees.

Relocation usually affects procurement times for raw materials from suppliers and goods shipped to customers; consideration of the impact on cost of goods sold components and potential changes to standard costs.

Facility Location - Factors Influencing the Location Facility Location - Factors Influencing the Location Facility Location is the right location for the manufacturing facility, it will have sufficient access to the customers, workers, transportation, etc.

This is a foundational guide to analyzing relocation strategies. The biggest myth of the new economy is that location no longer matters. Analyze the new thinking in relocation strategies.Relocating Operations: Effective Communication Strategies.

USCBC on Underestimating the scope of a move One common mistake companies cite is underestimating the scope of relocation, as relocating one facility will have a global impact on the company—both from a PR and operational perspective.



Facility location decisions are a critical element in strategic planning for a wide range of private and public firms. The ramifications of siting facilities are. Facility relocation strategies are considered as those decisions made by P/OM to move an existing facility to a new area due to the various reasons that may stimulate that movement.

The conclusion of this paper is that the analysis of facility relocation strategies is important for business success and as such P/OMs must take time to analyze these. As Relocation Strategies’ Executive Director of Operations, she is responsible for corporate accounting and internal controls, risk management, and support of the corporate financial planning and analysis functions.

Services The Benefits of Our Commercial Move Management Services: Utilizing Relocation Strategies to plan and manage your move will allow you and your entire staff to remain focused on productivity, reduction of move time and the expense for the entire move.

In-depth analysis of the global facility management market and dynamics is provided to understand the market scenario. Quantitative analysis of the current trends and future estimations from to is provided to assist strategists and stakeholders to capitalize on prevailing opportunities.

Analysis of facility relocation strategies
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