Logistics Revised

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Logistics Revised

Category: Case Study

Subcategory: Logistics

Level: Masters

Pages: 1

Words: 275

Logistics
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Intel seeks to develop new sites and in scouting for new sites it uses various criteria for the selection of the sites. Firstly, they look at the availability of labor. Considering that the production of items if labor intensive, it is important that the site chosen should have enough labor that would ensure the production is maximized. Secondly, availability of good transport networks, especially water. This is created by the fact that water transport is cheaper for the company as it transports its products and raw materials. Government incentives also play a big role; higher incentives attract investors more easily. The presence of ready markets is an added bonus that is considered during the selection of sites. The company has to also consider whether it would build a new plant or renovate an older site. These are some of the factors that would influence the choice of site.
Each potential site has its advantage; for example, India has higher advancements in technological education which is very relevant to the company. China had a readily available labor force and the infrastructural capability to handle such developments. Presence of other companies in Thailand implied a ready market for the company while Vietnam had a fast growing economy mainly driven by young people.
In retrospect China qualifies as the best site followed by India as they both have the technological advantage however Chinese technology was more advanced. Vietnam had the advantage of highly educated youths who guided the economy and Thailand would come last as its infrastructure was the most underdeveloped of all potential sites. The sites would be ranked as: 1.China 2.Vietnam and 3. Thailand. In all these countries the government policy encouraged foreign investments to push economic growth.