You're considering cost over quality in facility location decisions. What risks could you be overlooking?
Choosing a facility location based on cost alone can be risky. Below are potential risks that might not be immediately apparent:
- Increased Logistics Costs: Ignoring proximity to suppliers or customers may inflate transportation expenses.
- Workforce Challenges: Low-cost areas might lack a skilled workforce, leading to higher training or turnover costs.
- Regulatory and Compliance Issues: Overlooking local regulations can result in fines and operational delays.
What potential risks do you consider when selecting a facility location?
You're considering cost over quality in facility location decisions. What risks could you be overlooking?
Choosing a facility location based on cost alone can be risky. Below are potential risks that might not be immediately apparent:
- Increased Logistics Costs: Ignoring proximity to suppliers or customers may inflate transportation expenses.
- Workforce Challenges: Low-cost areas might lack a skilled workforce, leading to higher training or turnover costs.
- Regulatory and Compliance Issues: Overlooking local regulations can result in fines and operational delays.
What potential risks do you consider when selecting a facility location?