About the Client
Major Player in Garment industry was looking for its plant set-up globally to maximize its capacity and to give improved product mix toit’s high end customers with minimum Operational expenditure. For this, clientengagedWazir to advise for location which will fulfil proximity to supply sources, proximity to customers, and importantly proximity to labours.
Core objective of the study was to devise a corporate strategy for the client covering the following aspects regarding location analysis,
- Availability of Raw material – Easy availability of raw materials at the plant location will reduce the transportation cost.
- Proximity to the market – Location of manufacturing if nearer to the cargo depot will reduce the cost of transportation in case of export customers.
- Infrastructural Policy – Location should be planned as per infrastructural priorities such as availability of Power, Water, Transport, communication, banking and social needs etc.
- Local land’s Government Policy – locations should be planned in areas based on availability of various government incentives like ,concessions, tax holidays for number of year, cheaper power supply, factory shed etc.
- Availability of Manpower – Skill level available at the planned location plays very important and crucial role in business growth.
- Local Laws regulations and Taxes –Like minimum wages, etc.
- Ecological and environmental laws like Pollution Control board,
- Competition – Location should be planned base on competition available at the nearby area otherwise there will be more competition for manpower wages and skill level.
- Incentives, Land cost, subsidies for backward areas from government.
- Climatic and political condition
- We delivered the Location Analysis report covering the stated objectives.
- We submitted a Location Analysisstudy report covering:
- Proximity to source of Supply – for transportation cost of raw material to plant facility.
- Proximity to customer – On-time in full.
- Proximity to labor – Required skill level analysis as per product mix.
- Cost of Manpower – Based on local wage structures
- Report on required Skill Development Scheme