Production
Site selection
Site selection for your company – well-founded decisions for sustainable success
The right choice of location is a key success factor when planning new production facilities. The aim of the site selection is to create optimal conditions in which the services expected from the new location can be provided and at the same time secure, flexible and economical supply chains are created.
Site selections are no longer made in isolation, but increasingly in the context of an overarching global footprint strategy. This is because costs, risks and market requirements can only be sustainably harmonized if the new location is sensibly integrated into the existing network. Economic, political and legal location factors play just as important a role in choosing the right location as the strategic orientation of your international value creation network.
To ensure that you really do find ideal conditions at your new location, we support you with a well-founded, multi-stage decision-making process when looking for a location for your company. Our recipe for success combines extensive experience as well as reliable key figures, meaningful utility value analyses and a tried and tested international network.
Our approach to site selection and location analysis
A successful location analysis for companies follows a structured and tried-and-tested procedure. We combine strategic considerations from global footprint planning with a detailed analysis of specific location alternatives, guiding you safely from the initial idea through to implementation.
Search process
Do you want to find the right location for your new production facility? The very first steps are crucial to the success of the entire site selection. Together with you, we define requirements and target criteria as well as strategic guidelines with a view to your future global footprint and the role of the new location within it.
On this basis, we identify suitable countries and regions and structure the selection process from an initial longlist through to specific location options. By gradually consolidating the criteria, we ensure that both strategic and operational requirements are taken into account.
Our service packages:
- Identify potential locations in Europe, Asia and North America
- Define individually tailored location factors
- Carry out structured and transparent pre-selection
Your benefit:
- You go through an extensive and transparent search and selection process
- You make a site selection that is precisely tailored to your company’s situation
- You can draw on local experience from numerous implemented projects for selection and evaluation
Location evaluation
Many companies initially evaluate locations on the basis of national averages and run the risk of overlooking attractive regions. We therefore rely on a differentiated, two-stage location analysis for companies that specifically takes regional and local characteristics into account.
In the first step, we analyze countries and regions based on key location factors such as costs, labor market and infrastructure and create a well-founded longlist. We then examine specific locations in detail with regard to real estate, local conditions, funding opportunities and the industrial environment. At the same time, we evaluate the options in the context of your global operations footprint to ensure that the location fits optimally into your existing network. In this way, we ensure that the location decision not only makes sense regionally, but also contributes strategically to the long-term orientation of your production and supply network.
Our service packages:
- Stage 1: Select relevant countries and regions (longlist)
- Stage 2: Analyze and compare local site candidates in detail (shortlist)
- Evaluate potential locations according to theirglobal footprint
- Develop target image of the future production network
Your benefit:
- You receive a detailed and transparent evaluation of possible regions and locations
- You can make a selection based on sound local experience
- You gain access to our large partner network, which is rooted in many locations
- You can get a concrete and reliable picture through local contacts
Concept planning
In order to be able to plan a new production site, a clear target image for the site is crucial. We work with you to develop a robust concept for your future production and logistics structure, taking into account both operational requirements and integration into your global footprint. Based on specific data on products, quantities and processes, we create the layout and concept for your new site. We not only develop various concepts, but also compare relocation options and calculate relevant cost structures. The resulting cost-benefit analysis helps you to select the optimal location.
Our service packages:
- Developing a concept for the new production facility
- Compare scenarios for relocation volumes
- Create make-or-buy analyses
- Develop a reliable utility value analysis and apply it to possible locations
Your benefit:
- You receive clearly comparable models based on our expertise in factory and logistics planning
- You can develop and define the optimal vertical integration
- You receive a solid planning basis for the site selection
Business case and profitability
Location decisions have long-term economic implications and should therefore be based on sound figures. We compile all relevant information from the location analysis and concept planning and use this to develop a reliable business case. In addition to investments and running costs, we also take into account effects such as savings, market access or risk reduction and evaluate these as part of a holistic benefit analysis.
Our service packages:
- Create a comparative economic calculation
- Analyze technical and economic utility value
- Develop a differentiated recommendation for action
Your benefit:
- You receive a transparent overview of the expected profitability
- You can track the financial calculation with individual key figures.
- You make the location decision on a well-founded basis
Location structure
A new location brings with it operational challenges as well as opportunities. We therefore support you not only in the planning, but also in the construction and ramp-up of your new location and ensure that the defined goals are actually achieved. We take into account modern production and logistics requirements as well as local characteristics and integrate the site into your existing supply chain footprint.
Our service packages:
- Provide and implement project management for site construction
- Plant structure planning for the new location
- Integration of the organization into the site structure
- Supporting the transaction, construction and ramp-up of the site through to successful commissioning
Your benefit:
- You reduce risks in site development through structured and holistic implementation
- You can identify and utilize potential for increased productivity and flexibility
- Your organization is supported throughout the change process
Location factors in the site selection process
Holistic evaluation as the basis for the site selection
A well-founded location analysis for companies takes into account a variety of factors that must be weighted differently depending on the industry, strategy and target market. At the same time, these factors are levers for creating a resilient and competitive global footprint. These include, in particular, cost structures, labor market conditions, infrastructure, market access as well as political and legal framework conditions.
At the same time, aspects such as supply chain stability, risk diversification and sustainability are becoming increasingly important. Location decisions should therefore always be made in the context of a holistic global footprint in order to remain competitive in the long term.
Typical challenges in location planning lie in the complexity of decision-making, the large number of influencing factors and the secure implementation and integration of the new location into existing structures. A structured and data-based approach is therefore crucial in order to minimize risks and make well-founded decisions.
Why Rothbaum?
Holistic expertise for site search and global footprint
Rothbaum turns a location idea into a resilient and economically viable decision. We support companies precisely where location issues become particularly complex: At the interface of strategy, costs, supply chains and operational implementation.
In contrast to traditional consulting or pure location analyses, we not only consider individual location alternatives, but also their impact on the entire production and supply chain network. Every decision is consistently evaluated in the context of your global footprint with a focus on profitability, risks and feasibility.
Our particular added value lies in the combination of data-based analysis, in-depth industry knowledge and operational implementation experience. The result is not theoretical recommendations, but a clear basis for decision-making that you can use to select your next production site with confidence and implement it successfully.
FAQ
What location factors should companies take into account when choosing a location?
When choosing a location, in addition to production and labour costs, companies must also consider labour availability, infrastructure, energy supply, property, taxes, funding opportunities, market access and supply chains. Furthermore, political and legal risks, sustainability and risk diversification are becoming increasingly important. Which factors are decisive depends on the company’s strategy, the sector and the function of the future location.
How can companies integrate a new production site into their global footprint??
A new production site should not be viewed in isolation, but rather as an integral part of the existing production and supply chain network. Rothbaum Consulting therefore assesses the impact on supply routes, capacities, value creation, risks and existing sites. This makes it possible to determine what role the new site should play within the global footprint and how the production network can be structured for the long term.
When does a nearshoring location make economic and strategic sense for a company?
Nearshoring can shorten transport routes, stabilise supply chains and increase proximity to key markets. Rothbaum Consulting assesses potential locations holistically, taking into account costs, the availability of skilled labour, infrastructure, supply chains and the industrial environment. In addition, the scale of relocation and its impact on the existing production network are analysed.
More Information
The significance and fundamentals of a strategic location decision
The decision on the location of a new production facility, a logistics centre or a corporate headquarters is one of the most strategically important decisions a company’s management can make. This choice ties up capital in the long term and sets the operational framework for many years to come. During the preparatory phase, a multitude of complex factors must be weighed up against one another:
These include geographical location, connectivity to transport networks, labour costs and the regional availability of skilled workers. An unsystematic approach carries considerable risks for future profitability. The process therefore requires a structured analysis of all hard and soft location factors, based on both scientific and practical considerations.
Methods for underpinning the decision-making process
To reach an objective decision on a site, a multi-stage, criteria-based evaluation process is recommended. In the first phase, all requirements are defined and weighted in a specific catalogue of criteria. This is followed by detailed economic feasibility analyses, in which investment, operating and transport costs for various options are simulated.
Qualitative criteria such as legal certainty, funding schemes and environmental regulations are also incorporated into the overall evaluation. Utility analyses and sensitivity analyses ensure transparency. This enables risks to be identified at an early stage and alternatives to be compared impartially, thereby basing the decision on a robust set of data.
Supporting implementation and ensuring long-term sustainability
Once the optimal choice has been made, the structured implementation phase begins. Experienced consultants support companies in implementing the chosen option swiftly and minimising risks during the development of the new site. This includes providing support during negotiations with local authorities and landowners, as well as coordinating time and budget plans.
Through expert preparation of the location decision, companies lay the foundations for sustainable growth, optimal cost structures and a strengthened market position. The new site thus integrates seamlessly and highly efficiently into the existing corporate network.
Katrin Söntgerath
Manager Supply Chain
Talk to me!
Are you about to make a strategic site selection or would you like to develop your global footprint in a targeted manner? Then please send me a message. I will get back to you as soon as possible.
