Being better located than our competition, better infrastructure and having a closer proximity to the market, generates competitive advantages that must be used by different companies.
In today's competitive world, companies must analyze all facets and variables to face, in search of competitive advantages and an important criterion in the search for such advantages is location regardless of whether it is a small company, great company, a branch or a warehouse.
Every day, the location is more closely related to the distribution, marketing and sale of products. Its importance is fundamental.
Here are some elements to consider when deciding on the location of a company or business.
LOCATION DECISION:
Beginning:
- The ideal location of a plant, factory or warehouse will be the one where minimum production and distribution costs are achieved and where prices and sales volumes lead to profit maximization. The location of the company should never affect the normal development of business activities.Generally the closer the market, the greater the company's ability to influence the purchasing decisions of people in the environment due to its social impact.Clarification: On many occasions, companies identify with areas or geographic sectors, which makes it easier to market your products in these areas. The location decision must balance criteria of efficiency and competition, seeking to create advantages over competitors.
LOCATION STUDY:
The location study should evaluate possible location options, taking into account the various criteria and objectives that the company seeks.
It must consider the issues related to the expansion and diversification of the business and also the adaptability of the position. That is, you must take into account possible market, infrastructure and logistics variations to try to predict the value of the site in the future.
Location: An excellent location of the company, can generate efficiency improvements in terms of: Transport costs, ease of obtaining raw materials, efficient use of distribution channels, proximity to the customer and their needs.
FACTORS TO TAKE INTO ACCOUNT WHEN MAKING A LOCATION DECISION:
Although some criteria that must be taken into account to make a location decision are not the only ones:
- Means and cost of transport: Depending on the weight, volume and cost of transfer of raw materials and finished products. Supplies or services: It is analyzed whether the material is easily transportable or not, taking into account the durability and type of goods produced..Physical structure: Existence of roads, adequate services, communications for industrial purposes, etc. Availability of labor: The area sometimes does not have qualified labor, which forces companies to obtain resources from distant areas, increasing the costs. Possibilities of waste disposal: According to environmental criteria. Legal aspects: Taxation, administrative facility, legalization costs, etc. Security: At all possible levels, industrial security, physical security, avoiding possible thefts, etc.Closeness to the market: It is important to have the ability to reach the attacked market first and in better conditions. Social acceptance: This point is often not identified and causes problems. It is important that the location of the company or business does not disturb or generate conflicts with people, entities or social groups that force the company to assume additional costs. Access to information: Another point that is often not taken into account is the need of business information.entities or social groups that force the company to assume additional costs. Access to information: Another point that is often not taken into account is the need for business information.entities or social groups that force the company to assume additional costs. Access to information: Another point that is often not taken into account is the need for business information.
Location can affect the number of clients, contacts, search for business opportunities, etc.
Taking a short time to analyze the location opportunities of a company or business, can generate additional added value for the company and increase its competitiveness.
