How can the company choose a good factory address?

2022-10-29 54

Location of factory: it is to determine where to build a factory or service facilities, and it is how to use scientific methods to determine the geographical location of facilities, so that it can be organically combined with the overall business operation system of the enterprise, so as to achieve the business objectives of the enterprise effectively and economically. How can a company choose a good factory address? The importance of company location is related to the investment and construction speed of facilities. To a great extent, it determines the cost of the products or services provided. The impact of facility location on enterprise operation is manifested in the following aspects: investment, cost, employees, far-reaching effects and difficulty in change. Site selection and facility layout is a huge and permanent investment. Once the space layout is completed, if layout errors are found, it will be too late to remedy. A successful entrepreneur must be cautious in space design and avoid blind decision-making. The basic problem of company location mainly includes two levels: location selection: which area or region to choose to set up facilities; Coastal/inland, southern/northern, domestic/foreign, developed/underdeveloped areas, etc. Address: After the area is selected, a suitable location should be selected to arrange the facilities in the area, that is, a piece of land should be found as the specific location of the facilities. Factors influencing the company's site selection 1. Factors influencing the site selection A. Whether it is close to the product target market: it refers to general customers, distribution centers or other user manufacturers, etc., which is conducive to rapid delivery and lower transportation costs; B. Whether it is close to the supply place of raw materials: enterprises whose raw materials are larger in weight and volume than products, and enterprises with strong dependence on raw materials; C. Transportation: raw materials, spare parts and products should be close to railways, seaports or other areas with good transportation conditions; D. Relative position with outsourcing manufacturers: enterprises with more outsourcing should be as close to outsourcing manufacturers as possible, or the central enterprises should be as close as possible to the surrounding enterprises; E. Labor resources: close to areas with low labor costs, appropriate education level, skilled skills and easy access; F. Infrastructure conditions: the guarantee of water, electricity, gas, etc. required by the production and operation of the enterprise, and the treatment of "three wastes"; G. Climatic conditions: some products also need to consider temperature, humidity, air pressure, etc., such as precision instruments and high-precision products; H. Policies and regulations: Some countries/regions will give some preferential treatment to newly-built enterprises, and there are more and more multinational enterprises. Consideration of site selection and adaptability Factors influencing the company's site selection A. Scalability: In addition to the area required for production and operation, basic living and green space, the future development of scalability is more important; B. Geological conditions: the ground and foundation conditions, whether they can meet the requirements of load and precision of future facilities; C. Surrounding environment: whether it can provide housing, entertainment, living services, transportation and other conditions for employees. General service industry site selection mainly considers the following factors: passenger flow, customer quality, traffic conditions, site environment, relationship with neighboring stores, and store visibility. Weigh various factors carefully, decide which ones are closely related to the location of facilities, prioritize and grasp the key points; Under different circumstances, the same influencing factor may have different effects, and the principle provisions cannot be copied mechanically; Manufacturing and non-manufacturing considerations and the importance of the same factor will be different. The location of service facilities must be considered (profit maximization): those who have more direct contact with customers must be close to the customer storage/distribution center, and the relative position between transportation cost and competitors is more important than that of manufacturing industry, while shops and fast food restaurants, on the other hand, may have "aggregation effect" if they are located near competitors.