Path: Services » Business strategy, location and real estate advic » Evaluation of different options in location or site selection

Evaluation of different options in location or site selection

In order to being able to objectively compare different options, locations or sites, Buck Consultants International has developed the cost-quality matrix. The matrix has a vertical axes showing all the costs for the next 5 years (labour, transport, occupancy costs, etc. minus the investment subsidies/grants) and a horizontal axis showing the quality of the investment climate in a weighted score (including labour availability, quality and flexibility, labour regulations, technological expertise available, logistics qualities of the location, availability of suppliers, etc) In this matrix, the current situation or site is compared as a benchmark to the various alternative options, locations or sites. A position in the top right corner is the theoretical optimum, i.e. a combination of low costs and high quality of the business environment. In the matrix, the cost and quality factors and options, locations or sites included differ from one investment project to another.

Furthermore, we have developed a model to calculate the pay-back period/break-even time for the investments required for the relocation to alternative locations or investments in new facilities. Additional labour costs (relocation packages, training costs, recruitment costs, etc.) and real estate as well as workforce related exit costs are in a detailed manner included as well.

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