Selecting the right site involves many different factors
Which site is most suitable for your company and business processes? It is not always easy to select the right site for your facility. Many factors affect the decision, including costs, accessibility and room for future growth. A thorough site survey is key in providing a balanced view of all the considerations involved.
Site selection advice
Consulting firm Groenewout helps companies to reach the right decision when selecting a location by conducting a thorough site survey. The site survey includes the following aspects:
- Financial cost analysis
- Study of the size of the warehouse/distribution center
- Operational costs
- Qualitative site-related factors
- Evaluation of direct and indirect tax situation
- Modeling of distribution network
- Net cash value calculation including any costs related to the closure of a European distribution center, if applicable.
Site survey for pharmaceutical company
In order to give you a sense of our approach relating to site selection, we are pleased to outline a project we completed for one of the world’s largest pharmaceutical companies. Our client manufactures and distributes a wide range of pharmaceutical, nutritional, hospital and diagnostic products all over the world. The pharmaceutical company enlisted our consultancy’s help to restructure its European supply chain in order to increase its profitability. We first calculated the optimal size of a new European distribution center. We then conducted extensive site research to identify the ideal location. We performed a site survey for a warehouse of approximately 50,000 m2 for the initial phase.
One of our consultants accompanied our client on a visit to the sites in the Benelux region that we had selected for the shortlist. The sites were validated based on site-selection criteria such as costs, risk limitation, site specifications and labor. The site surveys also included a study of the consequences at each location (which included both brownfield and greenfield sites) using multi-criteria analyses. Within a four-week period, we determined the optimal location for the distribution center which offered potential operational cost savings of over 50%. Our expertise in the pharmaceutical industry and our integrated approach, with full and complete insight into both the costs and the opportunities, ensured that this project was successfully implemented within a short space of time.
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