After the factory was built, it will be difficult to sell or move it to a new location. Choosing the right factory location is probably the most important decision in the company's business plan. There are many things that the company must consider in choosing the location of a manufacturing plant. Check out several things that the company must consider below:
Local Geography and Climate
The first thing that the company must consider when choosing their factory location is local geography and climate. The territory of a country is often identified by local geography, marked by being in the mountains, near the coast, or on the plains. Local geography includes topology, drainage, and soil conditions, all of which have an impact on the cost of construction in one way or another.
The climate also varies according to its proximity to different topologies and large open spaces. The construction of a manufacturing plant must be in accordance with the natural environment.
Environmental and Ecological Problems
The second thing that the company must consider when choosing the right factory location is environmental and ecological problems. Which mean Companies must consider waste disposal and you must consider the waste materials which your own plant may produce. Disposal of factory waste such as dust, poisons, metals must be considered in order not to pollute the environment.
The next thing that the company must consider when choosing your factory location is the distance. When a company chooses a location to build a new plant, the company must consider the implications of the nearest infrastructure and geography for equipment and material delivery. The same problem must be considered regarding the procurement and delivery of raw materials, proximity to markets, availability of labor, supply chain infrastructure, and logistics.
There are a number of things that the company should consider in terms of distance such as how far is the location of the vendor from the factory? How far does the company need to transport finished goods to warehouses and distribution centers? Is the location can reach customers easily and save the money?
The other things that you should consider before choosing a factory location is the potential for expansion. Once you build a factory, the company wants to see the future of the company. Conditions and regulations will continue to change, and economic conditions also fluctuate but when they want to build for the right location of factory, they must consider manufacturing facilities and the potential for expansion of facilities.
If the company buys limited land, the company will find it difficult to expand the factory. If the factory needs more space in the future, the company must search for land or locations that can be expanded. Because build a factory from scratch will take time and costs.
Those are a few things that the manufacturing company should consider before choosing the right factory location. Making a successful manufacturing plant, in the long run, requires a lot of internal support. In addition, support from external parties such as the government is very important to be able to improve the business growth process.
The industrial area that has complete infrastructure is Karawang New Industry City (KNIC). Located in the center of the West Java industrial area, This industrial area has complete facilities from transportation, electricity sources to the latest technology.
There are several Karawang factories in the Karawang area of West Java. Several Karawang factories include automotive factories, bottled water, electronics, and household needs. The Karawang factories have been known for their quality to be able to export products to several countries.