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This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at La ubicación de centros productivos y logísticos
One of the points that has to decide Logistics, fundamentally in a global market like the current, is the location of productive and logistical centres

The location of productive and logistical centres

Committee of experts of Icil

23/05/2014
The costs salariales can recess to almost a sixth if the production realizar in the oriental European market, or even reduce to values almost near to 90% if we go us to some Asian countries. Therefore, the industrial location has a clear influence in the industrial costs. But the industrial costs only are a part of the global costs and those that interest are these last. In consequence to the industrial cost it is necessary to add him no only the cost of the transport to arrive to the market but also the costs of stock that causes the necessary time for the arrival of the supply.

How determine the correct location?

The best industrial location is the one who minimises the global cost, afterwards each location has to analyse from the point of view of the cost in the customer and never under the industrial pure appearance.

It is necessary to take into account that in the designs and logistical conceptions no professional are used to commit two errors that deep down constitute an only error:

  • The first error is that it is used to split of concepts predetermined like that only it produces a reference in a centre or that they have to have a regulatory warehouse by each market.
  • The second is to confuse the term Average with the Global term.

The aim of a company is that the sum of the global costs (Procurement + Production + Physical distribution) of each piece in the moment to deliver it to the provider was minimum.

Icil

Icil.

Suppose a company that produces in the centre of Spain and distributes his products by Europe and poses move his production to a country of the east Europe. The simple formula would be to compare the global costs of procurement production and distribution in average to Europe and opt by the minor.

However the normal is that, being the companies concentrated in Core- Business and without excessive hand of work, the global cost of products that sell in Portugal was cheaper producing in Spain that in east Europe.

In this case it logísticamente adapted would be to analyse as a whole if have 2 industrial centres is more correct that have one.

Besides, has to stand out that exist criteria more important, related with the first business aim –Sell– that they prevent the location in markets moved away in the supply of the productive centres. This gives mainly in those companies that compete in dynamic markets where ‘arrive the first' turns into a considerable advantage.

This creates one some paradox where the companies miss the periods in that it worked with few references, with reliable plannings, and where was acceptable and until convenient work with a true level of Stocks. However in this case it is impossible to compete with China and is the situation of dynamism and uncertainty that forces the agility and the business dynamism what allows to the European companies follow competing.

Premises to cover by the productive centres

Consistently, the location of the productive centres has to attend to the achievement of the following premises:

  • Has to allow arrive to the market in the terms of reaprovisionamiento and launching of new products that demands the market.
  • Has to optimise the global profitability and not to centre in the mere cost of production.
  • In the line of the previous point has to consider the possibility to produce the same product in more than a point since, because of the reduction of relative importance of the costs of production caused by the concentration in Core Business, an industrial splitting, although it increases the purely industrial cost, can reduce the cost of distribution when situating the origin of the product more near of the consumption.

Another factor that constitutes a strategy of optimum production that in a lot of cases consists in applying the designated 'postponement', in which, by means of a design adapted, the common components of the final product, that by own comunalidad have a forecast of the much more reliable demand that the final references of the product, produce in locations of low cost realizar the finishing and the personalización final near of the consumption with what produces a productive splitting and in some cases an ilocalización industrial.

Icil
Icil.

Location of the warehouses

The location of the warehouses, that better will designate logistical centres, to avoid problems of semantic, establish considering the amplitude of the economic and mercantile markets current, like Europe. They base in that the supply realizar in a determinate market always under a distribution centralised global and by the most economic way from the origin to the consumption deleting the figure of the Regulatory Warehouse. Like Regulatory Warehouse, understand the one who groups all the components of a request or of an expedition since, if the products flow of distinct origins, already will converge in the platforms of distribution or, in the centres whose utilisation helps to diminish the global logistical costs of each concrete supply.

In consequence the physical distribution part of a ‘warehouse' situated in the productive centres, if the products elaborate in the own market, or in the port by where penetrate in the same, if the products manufacture externamente.

The degree of service and the optimisation of cost realizar by means of the figures of stocks advanced or stocks of crash, by means of the apparition of the figure of Cross-Docking and by means of the employment of flexible borders to produce in more than a centre or use more than a port keeping the premise of a distribution centralised.

Aim of the location of factories and warehouses

Like full stop has to resaltarse again, to way of conclusion, that in all the cases the location of factories and logistical centres answers to the aim to arrive to the launching of new products when the market wishes it, Taking into account to that market are directing us.

Therefore, has to reaprovisionar the consumption of the form that minimise in each case the global integral cost of the company.

Related Companies or Entities

Fundación ICIL - Barcelona

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