Abstract
Production-related location choices are long-term, complex, difficult to reverse, and based on uncertain information. They constitute a high risk for a company as they are crucial for its long-term financial strength and performance. International Manufacturing Networks have become very complex as most companies have production sites all over the world. The increasing interconnectedness between these sites leads to even more factors that need to be taken into account when deciding on where to locate another production site. Only one in five companies succeeds in this process.
This chapter gives an overview of this topic. In the first part, a short introduction to the importance of a meaningful site selection process is given. Afterward, an analysis of important selection criteria, motives, and factors influencing the choice of location will be shown. To illustrate what an optimal process should look like, the second part presents a dedicated process model for location planning. Further, different valuation methods are elaborated. As a wrap-up, an example of a representative choice process, examples of best/bad practices as well as a prospect on the future are given.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abele, E. (Ed.). (2006). Handbuch globale Produktion. Hanser.. Retrieved from http://deposit.dnb.de/cgi-bin/dokserv?id=2713912&prov=M&dok_var=1&dok_ext=htm
Boston Consulting Group. (2016). Three Paths to Advantage with Digital Supply Chains. Retrieved from https://www.bcg.com/publications/2016/three-paths-to-advantage-with-digital-supply-chains
Festo AG & Co. KG. (2019). One Location Project – Produktion in China.
Hochdörffer, J., Buergin, J., Vlachou, E., Zogopoulos, V., Lanza, G., & Mourtzis, D. (2018). Holistic approach for integrating customers in the design, planning, and control of global production networks. CIRP Journal of Manufacturing Science and Technology, 23, 98–107.
Kinkel, S. (2009). Erfolgsfaktor Standortplanung (2. Aufl.). Springe. Retrieved from http://site.ebrary.com/lib/alltitles/docDetail.action?docID=10297053
Lanza, G., Ferdows, K., Kara, S., Mourtzis, D., Schuh, G., Váncza, J., Wang, L., & Wiendahl, H.-P. (2019). Global production networks: Design and operation. CIRP Annals, 68(2), 823–841. https://doi.org/10.1016/j.cirp.2019.05.008.
Lanza, G., & Treber, S. (2019). Transparency increase in global production networks based on multi-method simulation and metamodeling techniques. CIRP Annals, 68(1), 439–442. https://doi.org/10.1016/j.cirp.2019.03.011.
Mahle. (2019). Location planning @MAHLE. Set up of a new plant in Mexico.
McKinsey & Company. (2020). Modebranche: Jeder vierte Lieferant in finanziellen Nöten durch COVID-19. Retrieved from https://www.mckinsey.de/news/presse/2020-05-06-mode-lieferanten-corona
Moser, E., Stricker, N., & Lanza, G. (2016). Risk efficient migration strategies for global production networks. Procedia CIRP, 57, 104–109. https://doi.org/10.1016/j.procir.2016.11.019.
Mühlenbruch, H., Großhennig, P., & Nyhius, P. (2006). Produktionsstufen- und Logistikgestaltung im Globalen Varianten Produktionssystem. Wt-Online, 96, 405–410.
VDI Fachausschuss Fabrikplanung. (2009). Handlungsempfehlung zur Gestaltung globaler Produktionsnetzwerke. Ein Leitfaden der Arbeitsgruppe “Standortplanung des VDI-Fachausschusses Fabrikplanung”.
Verhaelen, B., Haefner, B., & Lanza, G. (2020). Methodology for the strategy-oriented distribution of decision autonomy in global production networks. Procedia CIRP.
Wöhe, G., & Döring, U. (2010). Einführung in die allgemeine Betriebswirtschaftslehre (24., überarb. und aktualisierte Aufl.). Vahlen.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Verhaelen, B., Peukert, S., Lanza, G. (2021). Site Selection Processes in Global Production Networks. In: Friedli, T., Lanza, G., Remling, D. (eds) Global Manufacturing Management. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-030-72740-6_7
Download citation
DOI: https://doi.org/10.1007/978-3-030-72740-6_7
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-72739-0
Online ISBN: 978-3-030-72740-6
eBook Packages: Business and ManagementBusiness and Management (R0)