Case Study 3:  Relocation of manufacturing and distribution

 

Initial situation

  • Hi-tech manufacturer of electronic components

  • Production sites in Italy and Switzerland 

  • Distribution centre for Europe in Switzerland

  • Need to consolidate all above functions in one location in a low cost country 

 

Actions taken by Lipton & Partners

  • Evaluation of needs and preparation of a rough plan

  • Comparison of possible target countries

  • Board decision for Slovakia based on Lipton & Partners recommendation

  • Agree on a business plan. Project "Go" 

  • Scouting for a suitable location, long and short list

  • Decision for a location

  • Negotiating of the lease contract and services

  • Search and hire the future GM and local management team

  • Negotiations with local authorities, banks, suppliers

  • Formation of a local company with temporary administration

  • Adapatation of the location to specific needs

  • Stepwise transfer of eqipment and processes.

  • Hiring and training of personnel

  • Production run-up

 

Outcome

  • Project succesfully concluded 

  • First production after 6 month

  • Project hand-over after 9 month

  • Expected savings over-achieved

  • Project further extended   

 

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