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Case Studies:

Faciliy Consolidation. Make Sense?
– International Electronics Manufacturer



With over 40 miles separating two buildings used for inventory storage and assembly, SPG’s client, an international manufacturer of electronic products, wished to consolidate the two into one. A potential building was identified. But did it make sense? Was it the right building? Proper layout? Geographically desirable?



SPG was engaged to participate in a Feasibility Study to evaluate storage space requirements projecting five years into the future. Also to be evaluated were labor needs, staging and loading zone requirements, dock door demands and manufacturing/ assembly space layouts.

SPG thoroughly assessed, through a variety of statistical and analytical tools and approaches, inventory requirements, storage methods, safety stock needs, line expansion, return goods/ buy back activity, staging demands, assembly configurations, obsolescence/ discontinuation of product lines, number and size of incoming/outgoing truckloads, seasonal peaks and receiving/ shipping practices.



The Study’s outcome resulted in a finding that the identified building was not sufficient to meet the client’s needs, neither in the short term nor within the projected horizon. The Study prevented the client from making a decision that could have been damaging, costly to their business and potentially result in loss of face with their overseas parent company.

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