It’s time for the next installment of Strategic Development Group’s countdown. Our SDG “Top Ten” list covers the most frequent mistakes companies make in the site selection process. Check out the other installments of our countdown!
Mistake #3: Non-Optimum Logistics
The challenge of logistics failures came front and center in March 2021 when the Suez Canal was blocked for six days by the Ever Given, a container ship that had run aground in the canal. Consumers had a front-row seat to the pain that happens when a single transportation option fails. That was a fairly dramatic fiasco for manufacturers and import/export companies. But logistics failings on any scale can chip away at companies’ bottom line in meaningful ways.
Failing to consider the cost of logistics related to highways, ports, rail, and air causes long-term repetitive cost disadvantages. Picking a less optimal location from a logistics perspective will place a non-competitive cost burden on a location for the duration of its existence. Due to higher costs and the inability to leverage one form of transportation against another, lifetime project costs swell.
Qualified site consultants ensure location cost modeling occurs to verify optimum logistics. Where possible, we recommend site locations that have multiple transportation options to create competition and shipping alternatives in the event there is an issue such as a shutdown or strike impacting primary options.
Our experienced team is singularly focused on finding your project the best site for long-term success. We take a holistic approach and have the expertise to negotiate and navigate the intricacies of your unique company and needs.
Founded in 1999, SDG is a highly specialized site selection consulting firm. We focus on identifying optimum locations promptly, maximizing the value of incentives, and minimizing risk for corporations from across the globe. SDG has managed projects with capital investment from $15 million to over $1 billion for companies in a wide range of industries including automotive, chemical, steel, and life science.