What are the factors to consider in the location of the factory?

Updated on Financial 2024-04-01
7 answers
  1. Anonymous users2024-02-07

    1. Enterprises should choose a place close to the raw materials of the product. This is because it saves transportation costs and reduces costs.

    2. Choose a place where the consumer market of enterprise products is concentrated, and the concentration of the consumer market will make the company's products easy to sell.

    3. Choose a transportation hub that is convenient for transportation, transportation is very important for enterprises, if the transportation is inconvenient, it is likely to delay the delivery time, and it will also lead to the rise of costs.

    4. Enterprises can choose places with sufficient energy, if the enterprise uses a lot of electricity, then in the energy-rich area, the electricity cost is relatively much less.

    5. Choose areas with abundant labor resources, labor is the necessary production relationship of enterprises, if there is no cheap labor, the cost of enterprises will rise, and even the situation of not being able to recruit workers will occur.

    6. Enterprises can choose to have preferential policies in the park, many areas have preferential policies, mainly to support the better development of enterprises, in the tax to give a certain tax rebate and tax reduction policy, enterprises in this kind of local operation, tax burden reduced a lot.

  2. Anonymous users2024-02-06

    What factors should be considered when choosing a business location?

  3. Anonymous users2024-02-05

    The trade-off.

    When it comes to facility location, companies have a lot to consider. When considering these factors, it is necessary to pay attention to: first, it is necessary to carefully weigh the listed factors and decide which ones are closely related to the location of the facility, and which are not related to the location of the facility although they are related to the operation or results of the business, so as to distinguish priorities and grasp the key in decision-making.

    Otherwise, sometimes there are too many influencing factors listed, and it is easy to make a clear distinction between priorities and priorities in specific decisions, and the best decision cannot be made. Second, the same influencing factor will have different influencing effects in different circumstances, so it is absolutely not possible to copy any principle or copy the existing experience. Finally, it should also be noted that the influencing factors to consider and the importance of the same factors can be very different for both manufacturing and non-manufacturing companies.

    A global survey of many manufacturing companies shows that companies believe that the following five sets of factors, each of which can be divided into several factors, must be considered when siting a facility:

    1. Labor conditions;

    2. Proximity to the market;

    3. Quality of life;

    4. Proximity to business and resources;

    5. Relative location with other corporate facilities.

    It can be seen that manufacturing enterprises should consider more regional factors when selecting the location of facilities, and for the service industry, because the service items are difficult to transport to distant places, the improvement of the service quality of service enterprises that need to be in direct contact with customers depends on the proximity and dispersion of the final market, and the facilities must be close to the customer base. For example, a laundry or a supermarket can be affected by a variety of factors, but the location of the facility plays a pivotal role. For example, the density of people around the facility, income level, traffic conditions, etc., will largely determine the operating income of the enterprise.

    For a warehousing or distribution center, as with factory location in manufacturing, transportation costs are a factor to consider, but getting close to the market quickly may be more important to shorten lead times. In addition, the location of manufacturing production in relation to competitors is sometimes unimportant. And in the service sector, it can be a very important factor.

    When selecting a location, service companies must not only consider the existing location of their competitors, but also estimate how they will react to the new facility. In this case, there may be a "focus effect", where the total number of customers attracted by a few companies focused on one location is greater than the number of customers who are scattered in different locations.

  4. Anonymous users2024-02-04

    What factors should be considered when an enterprise chooses a Huai shed site?

  5. Anonymous users2024-02-03

    The main factors influencing the choice of site:

    1.** conditions of labor resources.

    2.The best conditions for raw materials, fuels, and power.

    3.Conditions of sale of the product.

    4.Natural resource conditions.

    5.Transportation conditions.

    6.Conditions of cooperation in the production of local communities.

    7.Legal, regulatory and policy conditions.

    8.Technical support conditions.

    Specific factors influencing site selection:

    1.The topography, geomorphology, geology and hydrological conditions of the plant area.

    2.Surroundings.

    3.Scalability of the site.

    According to the survey, the following five sets of factors are generally considered to be carefully considered when selecting a factory location:

    1.with the target market.

    proximity.

    2.** conditions of labor resources.

    3.The social environment around the factory and the working environment of the employees.

    4.Proximity to the best suppliers and major production resources.

    5.The convenience of other departments related to the enterprise to cooperate with the relevant equipment.

  6. Anonymous users2024-02-02

    Hello, if the location of the factory is located, it must only be in the industrial park now. Otherwise, it is a very remote suburb, and it is definitely impossible to be in the city.

  7. Anonymous users2024-02-01

    The factors that need to be considered in the location of an enterprise are: geographical and environmental factors, policy and legal factors, transportation and logistics factors, labor factors, market and resource factors, etc. These factors are often the key issues that must be considered when selecting a company's location, and only after clarifying these issues can we better establish a corporate location strategy to further optimize the location plan and choose a suitable site for the future development of the enterprise.

    For manufacturing enterprises, it is especially necessary to have industrial thinking when selecting a site, be familiar with the layout and situation of upstream and downstream enterprises of products, and take into account the location of their customers and businessmen, so as to be able to deliver products and services faster; Take into account the location of its production facilities in order to reduce transportation costs and increase efficiency. Therefore, an ideal location should be close to major customers and merchants, and easily accessible.

    When considering geography, some businesses need to consider resource and environmental factors. For example, companies need to understand local natural resources and the environment in order to properly manage their own resource use, as well as design appropriate environmental planning. In addition, enterprises also need to understand the local topography and landform, land use and health conditions, etc., which also have an impact on the production and life of enterprises.

    Policy and legal factors are particularly important for companies. Enterprises must understand the industrial policies and laws and regulations, tax policies and legal responsibilities and so on. These factors will have a very important impact on the development of the business and help the company to better assess the risk profile of the economic and legal environment.

    Transportation and logistics factors are also one of the most important factors faced by enterprises. No matter what products are manufactured, raw materials and products, as well as important industrial tools, need to be transported until they reach the consumer. Therefore, enterprises need to consider whether the transportation and pipeline system is perfect, fast and low-cost, so that the enterprise has strong market competitiveness.

    The labor factor may seem simple, but it's a key factor in building a long-term and robust relationship with your business. If a company chooses a city with low production costs, it is more likely to attract and retain excellent labor, technology and knowledge talent, and it will also be better able to promote innovation and development of the enterprise.

    As a final factor, market and resource factors are also very important. These factors will have an important impact on the economic, market and human environment of the enterprise. Businesses need to consider the city's competitiveness, market size, and the availability of production public resources that will contribute to the cost-effectiveness of the business and increase the brand value of the business.

    In addition, companies should consider providing employees with a high-quality working and living environment when choosing a location. The construction of industrial and cultural parks or the establishment of specialized enterprise complexes will help to improve the quality of work and life and optimize the labor resources of enterprises.

    Site selection decision is one of the key steps in the development of an enterprise, involving management, technology and law, as well as marketing. Through experience and analysis, enterprises can find suitable areas for development faster through site selection decisions, so as to better promote the development and growth of enterprises in the industrial chain.

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