Location planning deals with the selection, evaluation and strategic development of geographical locations for companies, plants or operating sites. The aim is to ensure long-term competitiveness, security of supply, cost optimization and market proximity through a well-founded location decision.
The most important factors influencing location planning include infrastructural connections, availability of labor, legal framework conditions and proximity to suppliers. Location planning is an important component of expansion strategies, reorganization projects or global supply chain optimizations and often forms the basis for further planning stages such as plant structure, layout or logistics planning.