Tractus organized site selection criteria based on cost-redeeming factors and competitive advantage
- Tractus started by setting a project objective of identifying locations that would yield a 30% reduction in costs and generate sufficient competitive advantages to expand market share and sales volumes.
- Tractus identified critical location criteria based on a review of the client’s core business drivers including cost, operating conditions and risk factors. Modelling the relative attractiveness of Thailand, the Philippines, Malaysia, Vietnam, Cambodia, Myanmar and Indonesia, Tractus benchmarked them against Singapore.
- Site selection criteria were categorized into sub-components such as domestic market size; operating conditions; transparency/corruption; economic risks; regulatory risk; access to raw materials; and logistics among several other. These were scored and ranked outcomes using multiple-factor decision making methodologies weighted against the client’s outlook for each sub-component.