Background
Generac
Power Products, an operating division of a major US based
manufacturer was seeking to move all N American production
to Europe and combine with existing European manufacturing.
Additionally it was seeking to combine assembly with distribution
and establish a single location for all European assembly
and distribution. Components were imported from a number
of destinations in the Far East, Europe and N. America..
A decision had been made to locate the new EADC in Central
Europe to gain advantage of low cost components, real
estate and labour. Bisham was assigned the task of identifying
possible locations, sizing the EADC and the required transport
network
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Activities
A
detailed analysis of the present supply chain and component
assembly operations was undertaken. Inbound component
traffic was analysed to establish optimum gateways. Details
of present customer base and future growth plans were
constructed and detailed costings were established. The
data was run through a software programme to establish
the optimum centre of gravity based on component and finished
goods flows. Bisham also worked with B&S to investigate
labour costs/availability, land costs and possible grants
in various Cen European countries.
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Outputs
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. A short list
of 5 countries ( Czech Rep., Poland, Hungary, Slovenia
& Slovakia) was then further refined
. A new assembly
and distribution centre was proposed to be established
in the eastern region of the Czech Rep.
. A number of potential professional logistics partners
were identified
. The site was identified
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Results
. B&S
were able to obtain local grants to assist in the building
of the EADC
. The first phase of the EADC will come on stream in the
second half of
. Work is about to commence on going out to tender for
the provision of logistics services
. Initial calculations show that the cost of component
assembly and the sourcing of components has fallen dramatically
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