The logistical challenges faced by a multinational company when setting up a new production plant

Abstract

The aim of this research is to analyse the various logistical challenges faced by a multinational company when taking the decision to expand their production and operations to a new location. It will look into the measures taken by a particular organisation which opened a new production plant in Vietnam, considering and improving its strategies from past experiences of when it started business in other various locations across the different continents. The main areas explored are human resources, information technology, processes, infrastructure and location which in one way or another have an impact on the logistical aspects of the company. Taking into consideration, the complexity of the supply chain, this study will also question the effect of this additional plant on the concerned employees as well as other participants in the supply chain. The study utilises a qualitative method, using semi-structured interviews for the collection of primary data. It results that there are some major logistical challenges such as the relocation, lack of availability of human resources, the lack of experience in using ERP systems and the lack of information flow between colleagues which creates inefficiencies.