New production sites in up and coming markets

Russia, China and India as production locations

On the road to new markets, relocating to a new location for production can often be the next logical step to producing goods and products closer to target customers. Moving production abroad can also be a strategic option. In both cases, detailed analyses, highly precise target planning and perfect project organisation are mandatory.

New production sites in up and coming markets

At a glance

  • Markets require products, which require production, which requires a production site.
  • Processes, technology and products have to be clearly defined before relocating.
  • Mutual cultural understanding within the project team is indispensable for cooperation.
  • Organisation and management across time zones require patience and the necessary resources.
  • Having experience with the conditions in the target country will minimise frustration and the risk of having to learn the hard way.

New markets require great sensitivity and cultural understanding

Whether the site abroad is earmarked for targeting a new market or for relocating production, there are almost always bureaucratic hurdles and cultural misunderstandings to overcome. Subjects which frequently recur include: suitability of location, protection of intellectual property, approval procedures and quality standards.

Experience with local conditions certainly pays off here; yet few companies ever boast such experience. Cooperating with external consultants who can offer advice and support along the road to internationalising production has proven its worth, and pays off in the long run.

Project management makes risks controllable

When it comes to large-scale projects abroad, systematic project and risk management is essential. Apart from a detailed project plan that lists all project expectations, this includes a multilingual project manual and a computer-aided document management system, as well as pre-defined design and drawing standards.

To conclude, the factors which lead to success are: hard and fast project targets, the details of which have been coordinated with all involved; cultural tact and sensitivity in the project team; sufficient capacities; and practical experience in the target land.