How to Manage a Factory Relocation: 7 Steps For Success

Factory relocation is a challenging process, which may seem overwhelming to some. However, you can learn how to manage a factory relocation and make the transition convenient, seamless, and prolific with the right planning, execution, and monitoring. Manufacturing plant relocation itself is a complicated procedure but when done right, it can bring you the best of results.

In this regard, seeking help from professional factory relocation experts including interim managers and interim management companies like CE Interim, can be a great solution to simplify the tedious procedure.

They can help you develop the most flawless plan tailored to your specific needs and execute it to perfection. They can save you from unnecessary wastage of time, money, and resources, avoid disruption of operations, and minimize downtime.

In today’s blog, we’ll explore the best factory relocation management plan for any company looking to shift its manufacturing operations.

What is Factory Relocation?

Factory relocation, often referred to as manufacturing plant relocation or industrial plant relocation, is the shifting of production facilities, processes, and sometimes employees, from one geographical location to another. Companies opt for factory relocation due to a mix of economical, tactical, and operational factors.

The new location usually offers a series of advantages such as inexpensive labor, better infrastructure, reduced shipping times, easier market access, and higher process efficiencies.

Major companies are moving factories to Eastern European and Balkan countries like Romania, Albania, and Croatia. This shift is due to the skilled workforce, low operational costs, suitable for business environment, and proximity to key markets.

How to Manage a Factory Location Efficiently?

Managing a factory relocation is a complex process but we use the phased approach to simplify it into a 7-step action plan. We achieve this intimidating feat with the help of expert interim managers with a proven track record of completing hundreds of such projects in various industries.

Let’s move further and have a look at all the key steps your company must follow to complete the relocation of a factory effectively:

Step-1: Proper Planning and Preparation

The planning and preparation for the plant relocation is the first step in the process. The more time you allow for this phase, the higher your chances of completing the transition smoothly. Start by assessing why you need to relocate and decide if it’s necessary.

Once you finalize the decision, form a team to assign key roles and responsibilities. It’s better if this team is led by an expert like an interim manager, having experience leading such projects even during times of crisis.

After the formation of the project team, the next task is to develop an impeccable relocation plan with detailed milestones, timelines, budget estimation, and allocation. You can engage key stakeholders early to ensure the planning phase moves further smoothly.

Step-2: Identifying the Best Site

The next step is to choose the best location to move your manufacturing unit. Choosing the new location strategically is essential to ensure the success of your relocation. The location should be proximal to suppliers, transportation networks, and key markets.

There must be availability of skilled labor, good infrastructure and logistics, and favorable laws and regulations. Eastern European and Balkan countries complete this factory relocation checklist and emerge as comprehensive solutions for relocating production facilities.

Your project manager must conduct site visits, assessments, and thorough evaluations before finalizing the new location for the relocation of a factory.

Step-3: Keeping an Open & Clear Communication Strategy

Having a crystal-clear communication strategy will help the relocation to be completed efficiently. You should inform employees and stakeholders correctly, address their concerns, and provide required support.

You should also notify customers, and suppliers, and manage public relations and media about the move. This will help you avoid potential roadblocks and unforeseen circumstances.

Step-4: Asset Management & Transportation

The next step is to conduct a thorough inventory check, classify and label items for relocation, and proceed with their packing for transportation. You must evaluate the equipment and machinery you want to transport before packaging.

Once the packing is complete, connect with external vendors, and proceed with the transportation of assets. You can also sell off or dispose of outdated and redundant assets at this step and asses the upgrades required at the new location.

Step-5: Facility Setup and Layout Planning

The next step requires designing the new facility layout to ensure efficient space utilization and workflow optimization. You can schedule the installation and setup of equipment and machines at the new location appropriately once the transportation has been done.

Make sure there is proper adjustment and testing, and they comply with local regulations, standards, and safety checks. Conducting regular safety inspections and audits at the initial stages of relocating your manufacturing unit is essential to ensure a successful transition.

Step-6: Workforce & Data Management

When the facility and machinery setup is complete, moving your employees to the new location is the next step. You can opt for employee relocation and retention while also recruiting local talent simultaneously. Maintaining a mix of new and old workforce can help your organization perform efficiently and stay committed to long-term expansion goals.

Training the newly hired staff and educating the existing ones about upgrades, if any, is crucial for flawless production performance.

Alongside workforce management, data management is another essential step required to secure smooth operations. You must set up IT and network infrastructure timely and migrate data to the new center. Sufficient testing of IT systems and software to monitor the transition is also crucial.

Step-7: Post Relocation Monitoring & Optimization

After plant relocation, check if the operational transition was successful to minimize downtime and disruptions in performance. There should be backup plans in place to counter unexpected hindrances promptly.

If required, appropriate optimizations are necessary to ensure the maintenance of production schedules and business continuity. You can conduct a post-relocation review meeting and gather feedback from employees & stakeholders to evaluate the performance of the transition.

Finally, compare the results against the initial objectives and aims of relocation. If you’re satisfied, the transition is over and you can focus on other expansion goals. However, if you identify any areas for improvement, work on them to enhance business growth.

How Interim Managers Can Help with Factory Relocation?

Interim managers are skilled professionals with proven experience in factory relocations across various sectors. If you are overwhelmed by the process shared above, you can seek their help for relocating a factory to a different location with minimal effort and downtime.

They can work with your organization at the ground level, assess your goals and objectives, develop a plan tailored to your custom needs and strengths, and execute it with excellence. They can also help you identify potential risks and establish reduction strategies timely.

Getting professional help for factory relocation simplifies the process, ensures optimal outcomes, and avoids resource waste or disruptions.

Final Words

Factory relocation is a tedious process that requires a lot of effort, time, and resources. It can be formidable when you don’t know how to manage a factory relocation, plan, execute, and optimize the transition. Following our factory relocation checklist will help you simplify the process and reap the most benefits from this decision.

Seeking an interim manager’s help? Well, look no further than CE Interim.

At CE Interim, we understand that factory relocation to Eastern Europe is a complex and challenging task. Our team of seasoned professionals is ready with the expertise and experience to ensure a seamless transition. From initial planning to final execution, we handle every aspect of the relocation process, minimizing downtime and maximizing efficiency.

Let us help you achieve your relocation goals with precision and reliability. Contact us today to learn more about how we can assist you with your factory relocation needs.