Why is it risky to have all your manufacturing done in one location?

Discussion in 'Growing and Managing a Business' started by Turnip_Head, Mar 9, 2012.

  1. Turnip_Head

    Turnip_Head
    uix_expand uix_collapse
    New Member

    Joined:
    Mar 9, 2012
    Messages:
    1
    Likes Received:
    0
    Why is it risky to have all your manufacturing done in one location?

    what are the risks and,why is it desirable to diversify manufacturing locations?
     
  2. stdonexus

    stdonexus
    uix_expand uix_collapse
    New Member

    Joined:
    Mar 8, 2012
    Messages:
    5
    Likes Received:
    0
    I do not know much about manufacturing, but natural disasters come to mind. A tornado blows over the factory, you have no where else set up to produce, you are in trouble.
     
  3. sigma

    sigma
    uix_expand uix_collapse
    Active Member

    Joined:
    Aug 31, 2009
    Messages:
    1,944
    Likes Received:
    283
    yes, it is risky, especially your product is going through many process. The major concern is the lack of stock for the next process, your line will down. Therefore, many manufacturing prefer to go for only their major process and outsource the small process.
     
  4. DoubleUp

    DoubleUp
    uix_expand uix_collapse
    New Member

    Joined:
    Mar 13, 2012
    Messages:
    1
    Likes Received:
    0
    Stdonexus brings up a good point about concerns such as natural disasters. Even more simple things can occur such as delayed repairs of safety equipment, power issues and really there is an endless list of potential shop stoppers. These are all good reasons to have contingency plans and/or multiple locations for manufacturing.
     
  5. firstchoicecar

    firstchoicecar
    uix_expand uix_collapse
    Member

    Joined:
    Mar 17, 2010
    Messages:
    713
    Likes Received:
    29
    I think it is also risky, it better to have another location for it.We cannot avoid disasters and accidents.
     
  6. Navida

    Navida
    uix_expand uix_collapse
    Member

    Joined:
    Nov 22, 2011
    Messages:
    165
    Likes Received:
    8
    Same location of manufacturing is risky especial in food and pharmaceuticals products. Many large and branded manufacturing companies are designed their manufacturing plants in small units. This practice is very helpful in producing more products and for the quality of their products and it is also saves from natural disaster. Sigma point is also right.
     

Share This Page