NEWSLETTER - BCI JUNEJULY 2016

Location Strategies amp Site Selection

Supply Chain Strategy amp Network Design

Strategic Business Development

Regional Economic Development

Attracting New Investors

Infrastructure Development

Contents

Invitation for free webinar The impact of Brexit on yourcompanys European operationsshy July 7th

Medtech companies review global manufacturing footprint A new perspective on supply chain risk management US automotive supplier Gentherm chooses Macedonia Omnichannel in retail is hot order anywhere shy fulfill anywhere London based legal industry reconsiders locations Winning development agencies develop dedicated valuepropositions

How to optimize spare parts delivery in the Middle East andAfrica

Mega distribution centers on the rise Reduction of food losses in African food chains is feasible New agricultural machinery plant lands in Hungary Buck Consultants International opens office in Atlanta

Invitation for free webinar The impact of Brexit on your companys European operations- July 7th

Last week the British people chose Great Britain to leave the European Union One of the largest economies in Europe willnot be part of the unified European market anymore What does that mean for your companyrsquos operations What should beyour contingency plan for your UK production plant(s) distribution center(s) service operations RampD center

Buck Consultants International invites you for a free and practical webinar on the impact of the Brexit for your company

Date Thursday July 7th 2016

Time 430 ndash 530 pm Central European Time 330 ndash 430 pm UK-time 1030 ndash 1130 am US Eastern Time Zone 730 ndash 830 am US Pacific Time Zone

Topics which will be addressed during the webinar

The expected impact of the Brexit on the UK and the European economyWhich sectors of industry will be influenced mostHow to deal with the uncertainty in the next 24 months about how the UK and the European Union will split-up and will come to a kind of trade agreement Whatis your contingency planWhat about the attractiveness of the United Kingdom for setting up new operations by American Asian and European companies

How will the Brexit change the work of corporate real estate executives as far as the UK facilities are concerned

Buck Consultants International works for a wide range of international companies such as ABB Abbott Allen amp Overy Amgen Boston Scientific BP Chiquita ColumbiaSportswear Danone Dell Computer DHL ExxonMobil Fossil Fuji Photo Film G-Star Hewlett-Packard Ikea John Deere Johnson amp Johnson Kraft Foods LizClaiborneMexx Medtronic Microsoft NCR Nike Novartis Philips Samsung Sitel Stryker Toshiba Vodafone Yamaha The projects include development of global orregional footprint strategies location studies for distribution centers production plants RampD centers and back office projects as well as supply chain optimizationstudies in all regions of the world If you are interested to participate please send an e-mail to nathalieschoutenbciglobalcom and wersquoll send you the technical instructions

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Medtech companies review global manufacturing footprint

The technologies in the medtech industry are rapidly changing while at the same time the whole industry is globalizing at afast pace New emerging geographies mean for US and European companies new locational challenges and new types ofrisks to be addressed

The worldwide medtech industry a broad and diversified industry vertical with over 10000 product groups and 500000 technologies isstill growing With a forecasted annual growth rate of 41 the sector will reach sales of nearly $ 480 bln by 2020 But no dull momentin the medtech as technology and innovation challenges have to be addressed but also pricing pressures and regulatory changes This last point (regulatory and legalcontext) varies per country Take Asia as an example more than 50 countries varying tremendously in size market access regulatory approvals and reimbursementmodels Global manufacturing footprint ldquoProducing devices or equipment in every geography of the world is on the top of the board agenda of all medtech companiesrdquo says Johan Beukema managing partnerat Buck Consultants International ldquoClients are interested in the opportunities location choices and risks in countries like Malaysia Vietnam Mexico and China Theywant to combine the growth of these emerging markets and customer proximity with overall relative low production costs in order to really optimize their globalmanufacturing footprintrdquo

Beukema underlines that companies need to have a clear global manufacturing strategy which has to address four questions The whyquestion is about the drivers behind such a strategy varying from market pull to technology push What refers to make or buy decisionsbalancing the pros and cons of own manufacturing versus CMO strategies The where question is to identify for an individual company relevantregions in the world Last but not least is the how question how to mobilize the company for changerdquo Mathijs Pronk senior consultant adds ldquoBuck Consultants International has a variety of tools to assist companies in making these strategicdecisions From C-level strategic workshops to complete footprint scenario simulation and location choices all over the globe And always with apractical mindset based on our 30+ medtech projects annuallyrdquo

For medtech companies Buck Consultants International has a specific presentation lsquoGlobal Footprint Strategy Scenarios amp Location Choices in the Medtech Industryrdquoavailable free of charge Please mail

Johan Beukema email johanbeukemabciglobalcom phone +31 24 3790222 Mathijs Pronk email mathijspronkbciglobalcom phone +31 70 3352227

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A new perspective on supply chain risk management

Strikes at the port of Long Beach labour disputes in France natural disasters like an earthquake in Indonesia a volcanoeruption in Iceland grounding air flights between Europe and the US they all disrupt supply chains Although manycompanies witness the potential downside of disruptions on business continuity and performance effective supply chain riskmanagement practices are still rare Buck Consultants International has developed a new framework based on the concept ofresilience

ldquoA survey BCI executed among 50 supply chain executives in various industry verticals shows that although 86 considers supplychain risk management to be important less than 60 has a back-up plan in case a disruption occursrdquo says Wesley Haaksma consultant at Buck ConsultantsInternational BCI advises companies to use standard risk assessment tools in combination with establishing resilience capabilities ie competences that make organizations lessvulnerable to unfavorable circumstances BCI has developed a new model for resilience assessment using 12 organizational competence factors and 5 risk sourcefactors which in turn consist of 140+ sub-factors

How will the Brexit change the work of corporate real estate executives as far as the UK facilities are concerned

Buck Consultants International works for a wide range of international companies such as ABB Abbott Allen amp Overy Amgen Boston Scientific BP Chiquita ColumbiaSportswear Danone Dell Computer DHL ExxonMobil Fossil Fuji Photo Film G-Star Hewlett-Packard Ikea John Deere Johnson amp Johnson Kraft Foods LizClaiborneMexx Medtronic Microsoft NCR Nike Novartis Philips Samsung Sitel Stryker Toshiba Vodafone Yamaha The projects include development of global orregional footprint strategies location studies for distribution centers production plants RampD centers and back office projects as well as supply chain optimizationstudies in all regions of the world If you are interested to participate please send an e-mail to nathalieschoutenbciglobalcom and wersquoll send you the technical instructions

Back to top

Medtech companies review global manufacturing footprint

The technologies in the medtech industry are rapidly changing while at the same time the whole industry is globalizing at afast pace New emerging geographies mean for US and European companies new locational challenges and new types ofrisks to be addressed

The worldwide medtech industry a broad and diversified industry vertical with over 10000 product groups and 500000 technologies isstill growing With a forecasted annual growth rate of 41 the sector will reach sales of nearly $ 480 bln by 2020 But no dull momentin the medtech as technology and innovation challenges have to be addressed but also pricing pressures and regulatory changes This last point (regulatory and legalcontext) varies per country Take Asia as an example more than 50 countries varying tremendously in size market access regulatory approvals and reimbursementmodels Global manufacturing footprint ldquoProducing devices or equipment in every geography of the world is on the top of the board agenda of all medtech companiesrdquo says Johan Beukema managing partnerat Buck Consultants International ldquoClients are interested in the opportunities location choices and risks in countries like Malaysia Vietnam Mexico and China Theywant to combine the growth of these emerging markets and customer proximity with overall relative low production costs in order to really optimize their globalmanufacturing footprintrdquo

Beukema underlines that companies need to have a clear global manufacturing strategy which has to address four questions The whyquestion is about the drivers behind such a strategy varying from market pull to technology push What refers to make or buy decisionsbalancing the pros and cons of own manufacturing versus CMO strategies The where question is to identify for an individual company relevantregions in the world Last but not least is the how question how to mobilize the company for changerdquo Mathijs Pronk senior consultant adds ldquoBuck Consultants International has a variety of tools to assist companies in making these strategicdecisions From C-level strategic workshops to complete footprint scenario simulation and location choices all over the globe And always with apractical mindset based on our 30+ medtech projects annuallyrdquo

For medtech companies Buck Consultants International has a specific presentation lsquoGlobal Footprint Strategy Scenarios amp Location Choices in the Medtech Industryrdquoavailable free of charge Please mail

Johan Beukema email johanbeukemabciglobalcom phone +31 24 3790222 Mathijs Pronk email mathijspronkbciglobalcom phone +31 70 3352227

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A new perspective on supply chain risk management

Strikes at the port of Long Beach labour disputes in France natural disasters like an earthquake in Indonesia a volcanoeruption in Iceland grounding air flights between Europe and the US they all disrupt supply chains Although manycompanies witness the potential downside of disruptions on business continuity and performance effective supply chain riskmanagement practices are still rare Buck Consultants International has developed a new framework based on the concept ofresilience

ldquoA survey BCI executed among 50 supply chain executives in various industry verticals shows that although 86 considers supplychain risk management to be important less than 60 has a back-up plan in case a disruption occursrdquo says Wesley Haaksma consultant at Buck ConsultantsInternational BCI advises companies to use standard risk assessment tools in combination with establishing resilience capabilities ie competences that make organizations lessvulnerable to unfavorable circumstances BCI has developed a new model for resilience assessment using 12 organizational competence factors and 5 risk sourcefactors which in turn consist of 140+ sub-factors

ldquoOur approach has two main advantages compared to tools such as mapping critical path analysis risk likelihood amp impact analysis and six sigma Instead of findingand implementing costly and exhaustive risk mitigating strategies for every possible contingency our approach helps to diminish the susceptibility of companies to riskswithout addressing specific disruptions Furthermore by balancing risk sources and organizational competences an appropriate trade-off can be made betweeninvesting in resilience and facing supply chain riskrdquo explains Reitze de Graaf senior consultant at Buck Consultants International

Cases In a just released white paper BCI presents two case studies The first case is about European distribution network optimization from a cost and risk perspective Itshows not only how risk sources and organizational competences can be evaluated and prioritized but also how risk mitigation costs can be calculated

The second case deals with a stand-alone resilience assessment Our approach consists of three phases scoring factors contributing tosupply chain resilience evaluation amp prioritization of risk sources and competences risk mitigating strategies amp financial impact analysis

Benefits As mentioned before the BCI framework encompasses both risk sources and competences The main benefits are

instead of establishing exhaustive risk mitigating strategies for every possible contingency our approach diminishes the vulnerability to risks without addressingspecific disruptionstrade-offs can be made between investing and facing risks by balancing risk sources and organizational competencescompanies with the right balance between risk sources and competences have an edge on their competitors when unforeseen events occur

Interested in our supply chain risk approach andor in the White Paper Contact Reitze de Graaf email reitzegraafbciglobalcom phone +31 24 3790222 Wesley Haaksma email wesleyhaaksmabciglobalcom phone +31 24 3790222

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US automotive supplier Gentherm chooses Macedonia

Michigan based Gentherm a global producer of appliances for regulation of temperature control applications has opened a newproduction site in Prilep in the Southern part of Macedonia Buck Consultants International assisted Genthermrsquos Europeanmanagement with the site selection process from a blank sheet covering Europe and Africa to the exact location in theTechnological Industrial Development Zone Prilep

Gentherm a $ 850 mln dollar company employs over 10000 employees in facilities all over the world Growing sales for companies suchas Ferrari Bentley Renault BMW Porsche Fiat urged the company to find a new production site ldquoThe availability of educated workforce and excellent investment

opportunities were the main reasons why we chose Macedoniardquo says Joumlrg Evers Vice President Automotive Europe at Gentherm Henoted that in the final selection new sites in Romania Bulgaria Serbia Morocco Macedonia and Hungary were considered ldquoThereason for the decision to invest in Macedonia were the qualifications of the people our project team interviewed and theprofessionalism of the representatives of the Government of Macedoniardquo The company now employs a couple of hundreds employeesa number which is expected to grow to 2000 people

(Former) Prime Minister Nikola Gruevski and Mayor of Prilep Marjan Ristevski are enthusiastic about Genthermsrsquo investment ldquoWe believe that other investors will followthe example of Gentherm When seeking access to the European market good infrastructure good business conditions quality of the human resources and agovernment as a willing partner the choice will fall to Macedoniardquo

Source ao Kurir More information Mathijs Pronk email mathijspronkbciglobalcom phone +31 70 335 2227

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Omni channel in retail is hot order anywhere - fulfill anywhere

Many brand owners and retailers still have a PampL for each distribution channel one PampL for their retail channel one for e-commerce and one for the wholesale channel Logistics is also organized per channel (lsquosilorsquo) But if you put the customer inthe center you need an omni channel strategy to accommodate buy everywhere ndash shop from everywhere - return toeverywhere

That e-commerce is growing is not new Internet sales in the UK topped 112 bln euro already But also online sales in GermanySweden France and the Netherlands are in the range of 75 ndash 12 of total retail sales (UK 15) ldquoIn order to create one brand and shopping experience brand owners and retailers cannot make a distinction anymore between the online world and the brick andmortar world Omni channel is the way forwardrdquo explains Patrick Haex managing partner at Buck Consultants International Research shows that 70 of the customersexpect to view in-store inventory online but only less than 13 of the retailers is able to fulfill this expectation Interesting fact only 1 out of 3 customers are likely to visita store if they do not have visibility to the itemrsquos in-stock status

Buck Consultants International recognizes various fulfillment models drop ship from the vendor to the customer (Lenovo AppleKidKraft) dedicated distribution centers for e-fulfilment (Urban outfitters Tesco Esprit) combination centers with stores and on-linecostumers serviced from the same distribution facility (Mango GAP) distribution via stores (Ikea Staples) Patrick Haex ldquoHybridfulfillment networks are emerging to unlock the inventory in the chain and sell products at full price rather than mark down theinventoryrdquo Regarding locations of fulfillment Patrick Haex comments ldquoCompanies migrate closer to the end consumer You have to be

fast when it needs to be fast to win the sale For same or next day delivery we advise for larger metropolitan areas such as London Paris Moscow and Shanghai rapidfulfilment centersrdquo Buck Consultants International has made a tool to assess transport amp delivery to define best in class e-commerce networks ldquoGiven the fragmented European carrierlandscape and the high costs of integrated parcel shipping brand owners or retailers need to be able to connect with many carriers We have an excellentunderstanding of which carrier in all geographies of the world can deliver and perform according to the specific requirements of a clientrdquo For more information about e-fulfilment from network design to transportation management and warehouse design contact Patrick Haex email patrickhaexbciglobalcom phone +31 24 3790222

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London based legal industry reconsiders locations

The legal industry is looking for new support business models and new locations as well The mantra is not anymore lsquoLondonLondon Londonrsquo There are new kids on the block in the UK Europe and Asia Norton Rose Fulbright and Dentons recentlyannounced new locational support strategies following examples of Allen amp Overy (see here) and Hogan Lovells (see here)ldquoBuck Consultants International is clearly the preferred go to location advisory firm for legal firms as these new projects showagainrdquo says Josefien Glaudemans partner at Buck Consultants International

Dentons Dentons a global top 20 legal firm announced its new shared services strategy with the announcement of a new business service centerin Warsaw Poland later this year Dentons Business Services EMEA (DBSE) will supply business services for lawyers and professionals predominantly in the firmsUKMEA and Europe regions across finance business development and marketing human resources and IT By pooling together in one location certain tasks currentlyperformed across numerous offices Dentons will be able to leverage both regions combined scale and resources more effectively and create better service for itsclients as a result of achieving greater efficiencies within the business We are always looking for new ways to better serve our clients said global chairman JoeAndrew After the firms rapid expansion of the past few years it is a logical step for us to leverage our scale and resources more effectively while continuing to invest inharmonization so that we can achieve our objective of building the law firm of the future now Warsaw offers us a number of advantages over other locations but the key appeal to us is its mature shared services market with experienced and available staffsaid UKMEA CEO Jeremy Cohen We are the largest law firm in Poland with a reputation for quality stretching back over 25 years which will make the DBSE anattractive proposition to the multi-lingual business services workforce that Warsaw is renowned for Norton Rose Fulbright

Norton Rose Fulbright another large legal firm announced recently to move nearly 60 London support jobs to Manila in the Philippinesas it relocates 170 jobs worldwide The firm is opening a business services centre in Manila in September 2016 to handle marketingbusiness development HR document production IT finance compliance and knowledge management work Mark Whitley the firms global chief operating officer said This change will mean that we will have to take some tough decisionsregarding our people We fully appreciate that this will be a difficult time for some of them According to Whitley the move is part of the firms 2020 business transformation strategy which has the goal of creating a globally

integrated and efficient service The centre with a dedicated team of about 170 people will service the firms global offices across Australia EMEA Canada and theUS A Norton Rose spokesperson said the firm had conducted an extensive review before deciding on the moves The criteria we used to select our preferred locationswere quality risk and cost and having considered all options we decided that Manila best fulfilled our criteria Manila is a business service hub with a well-developedinfrastructure a large English-speaking labour pool and a strong professional services culture Source ao Legal Week

Contact Josefien Glaudemans email josefienglaudemansbciglobalcom phone +31 24 3790222

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Winning development agencies develop dedicated value propositions

Economic development agencies all over the world often present themselves in the same way brochures interactivewebsites regular e-mail updates about always crucial new investments flash drives with ndash if printed ndash hundreds of pages ofbackground information But who really reads this Which potential investor gets convinced by supply driven informationBuck Consultants International helps economic development organizations whether it is on a city regional state or countrylevel with the right answer dedicated value propositions

Value proposition Value propositions refer to the set of benefits or values that a region promises to deliver to potential investors to satisfy their need The

Buck Consultants International approach to developing value propositions consists of 6 elements whether it is for a biotech park an automotive region an inlanddistribution center or an airport cargo site Focus who is your target group

Understanding what are the exact requirements and location criteria of the chosen target

group

Solution what is the answer to the requirements of the potential investors

Benefits how does your target benefit from locating in your region Think aboutcosts quality of the business environment risks flexibility

Differentiation how does your target benefit from locating in your region in comparison withother regions

Support how can you facilitate (eg expertise contact network incentives) Technology Example Instead of executing a marketing action based on an in-depth traditional supply oriented inside-out documents Buck Consultants Internationalhas been very successful in assisting regions and cities with outside-in value propositions in various technology fields such as biotechmedtech high-tech systems new energy sources A technology value proposition consists of four steps Step 1 Focus on technology niches based on the regional availability of technologies

knowledge productsmaterials andor facilities

Step 2 Develop a value proposition (about 30 PowerPoint slides) through desk researchand interviews with all relevant stakeholders academic leaders technologyexperts and leading companies in that particular technology niche Answer(crucial) questions like in what technology niches are our universities Centers ofExcellence technology institutes and companies really world class

Step 3 Based on size growth and technology leadership identify companies who shouldhave your regioncluster on their radar screen

Step 4 Get in touch with target companies to show them how your region can help themto cope with their business and innovation challenges

Buck Consultants International has developed technology value propositions for regions in ao Germany United Kingdom the Netherlands Belgium Interested

Contact Johan Beukema email johanbeukemabciglobalcom phone +31 24 3790222 Mathijs Pronk email mathijspronkbciglobalcom phone +31 70 3352227 Maurice Kuipers email mauricekuipersbciglobalcom phone +31 24 3790222

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How to optimize spare parts delivery in the Middle East and Africa

Customers all over the world expect the same for spare parts deliveries same or next day delivery products always availablechoices for delivery points And in the US and Europe that is not a problem But how to deliver spare parts and meet theseexpectations in Saudi Arabia Kenya Nigeria Iran South Africa

A survey of Buck Consultants International shows that in reality the difficulties in emerging markets can be many Customs inefficiencies(timing documentation) import restrictions limited service geographical coverage and security issues do not match with highcustomer expectations

To build a customer focused and cost efficient spare parts supply chain four key building blocks are needed explains Carlo Peters principal consultant at BuckConsultants International ldquoThe distribution center network is the starting point Routing is important as we see more and more direct delivery to the customer from thesupplier or plant instead of a distribution center The third building block is inventory segmentation and planning Letrsquos not forget that the vast majority of the spare partsdeliveries is for only a limited number of SKUs The last building block consists of the management and service of transport through various modalitiesrdquo With thesebuilding blocks each company can optimize their specific spare parts supply chain keeping service levels high and costs as competitive as possible MEA Growth of business in Africa and the Middle East leads to new routes-to-market strategies Srini Vasudevan senior consultant at Buck Consultants Internationalexplains the dynamics in spare parts supply chains ldquoThe starting point for many companies is a European spare parts hub serving Middle East and Africa (Figure 1) Asbusiness expands a company might need over time a regional hub in for example the United Arab Emirates for Middle East and East Africa and a hub in South Africa tocover the southern part of Africa while the European hub still services customers in North and West Africa (Figure 2) A logical next step could be a regional solutionwith various hubs in Africa (Figure 3) However due to the lack of seamless customs processes and appropriate infrastructure this is not (yet) feasible A goodalternative is consignment stock of critical spare parts at strategic customers or locationsrdquo

Interested in our dedicated presentation for spare parts supply chains in Middle East and Africa Contact Carlo Peters email carlopetersbciglobalcom phone +31 24 3790222 Srini Vasudevan email srivasudevanbciglobalcom phone +31 24 3790222

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Mega distribution centers on the rise

Big bigger biggest It looks like a rat race but economies of scale urge shippers and logistics service providers toestablish mega distribution centers (more than 400000 sq feet or 40000 sqm)

These mega distribution centers are realized by retailerson line shops (eg Amazon Primark Lidl Action) producersbrand owners(like Tesla Michael Kors) and logistics services providers (for example Rhenus Logistics DB Schenker Arvato) ldquoAn important driver

are economies of scale in order to use the latest warehouse technology to deploy personnel efficiently and to combine deliveriesTraditional retail chains confronted with increasing online sales as well as plane e-tailers need more warehousing space to haveenough inventory of a wide variety of products and to pack all deliveries for individual customers And letrsquos not forget the space neededto unpack and inspect all returns and make them ready for a new deliveryrdquo told Reneacute Buck CEO of Buck Consultants International theaudience at a recent Property EU Forum

The Netherlands The trend towards mega distribution centers can be witnessed all over Europe for example in the United Kingdom and Germany Butalso a logistics hotspot like the Netherlands sees a growing number a mega distribution centers Maurice Kuipers senior consultant at Buck Consultants Internationalpresented recently the results of an analysis of mega distribution centers in the Netherlands Exactly 28 mega distribution centers are established or announced since2013 covering 2 million square meters warehouse space (20 million square feet) and employing more than 10000 people ldquoParticularly the Southern part of theNetherlands on the corridors between Rotterdam and Germany and Rotterdam and BelgiumFrance tops the ranking Especially the regions in the province of North-Brabant do very well due to their geographical location towards the European market excellent multimodal accessibility and developed ecosystem such as the rightlabor force and available sitesrdquo says Maurice Kuipers (see map)

More information Reneacute Buck email renebuckbciglobalcom phone +31 24 3790222 Maurice Kuipers email mauricekuipersbciglobalcom phone +31 24 3790222

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Reduction of food losses in African agro-food chains is feasible

Sub-optimal logistics is the root cause of agro-food losses in developing and emerging countries In Benin and Nigeria agro-food stakeholders have indicated that the development of logistics and transport capacity is needed together with animproved access to financing in order to make agro-logistics more efficient and to reduce logistics losses

Food losses Whilst almost 800 million people worldwide are currently estimated to be undernourished the Food and Agricultural Organization of the

United Nations estimates that 13 billion tonnes of food is lost each year Moreover the world population is predicted to reach 96 billion people by 2050 and trendssuggest that the greatest demand for more food comes from the poorer communities where the highest demographic growth will take place In light of this current foodsupply levels will need to increase by at least 60 to meet the growing demand for food Unsurprisingly many governments have identified the reduction of food losses as a policy priority Existing case material indicates that in developing and emergingeconomies food losses occur at the beginning of the agro-food chain and in particular from farms to pack-houses or processing plants Sub-optimal transport andhandling are especially responsible for the huge losses Based on the results of studies that it has in different countries Buck Consultants International estimates thatbetween 60 and 80 of food losses could be avoided by optimizing transport packaging and handling The Dutch Ministry of Foreign Affairs assigned BCI to scan the agro-logistics sector of Nigeria and neighbouring Benin with a view to identifying opportunities for Dutchbusinesses to invest in agro-logistics To achieve this the logistics chains of the following three products were assessed tomatoes pineapples and capsicum (peppers) Nigeria amp Benin Nigeria is the economic powerhouse of Africa where the development of an agricultural policy has only been a policy prioritysince 2010 and the agricultural output is insufficient to feed the growing population Consequently there are many opportunitiesto further develop efficient agro-logistics and substantially reduce losses The production areas are mainly situated in the northof the country while the large consumption markets are found in the south This means that the transport distances areconsiderable - in cases up to 1000km In addition in most instances transport arrangements are informal and trucks arepredominantly not refrigerated The packaging of products is also sub-optimal and the quality of the products that reach thewholesale markets in the south of the country is poor Benin is not endowed with resources and agriculture is considered by the government as a focus area of development Valuechains are only developed in a nodal way and are mainly based on pineapples and tomatoes Furthermore there is a large demand for fresh fruits and vegetables in theNigerian Lagos-Ibadan agglomeration that borders Benin A lively trade currently exists between the two countries 60 to 80 of which is informal In Benin agro-logistics is not well developed and there are many similarities with Nigeria in this sector Agro-stakeholders have also specifically identified poor road conditions andnumerous roadblocks as impeding on trade and logistics More information Karel Vanroye e-mail karelvanroyebciglobalcom Phone +32-2-7097750

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New agricultural machinery plant lands in Hungary

Illinois based agricultural equipment manufacturer GSI opened a year ago its first European manufacturing plant Location of choiceis Biatorbaacutegy (Hungary) where 125 people now work in a brand new facility

GSI a global brand of AGCO is a world class manufacturer of grain storage material handling conditioning and drying equipment as well asa full line supplier of swine and poultry production equipment The 8000 sqm manufacturing plant is benefitting from the dynamic growth in the agriculture industry ndash especially grain poultry and swine

businesses ndash in the Europe Middle East amp Africa region The design manufacturing and distribution of grain material handling equipment is now covered by theHungarian plant Buck Consultants International assisted GSI in its location decision process Tom Powers (just retired) director Strategy and Integration of AGCO wasBCIrsquos counterpart ldquoAs a former location strategy consultant I had high expectations for Buck Consultants International when they were selected for this project Thevery competent cross-functional and geographically diverse project team exceeded expectations The analysis was thorough the methodology sound and alldeliverables presented on time I was very confident in presenting to AGCO and GSI senior leadership the recommendation to locate our manufacturing facility inHungary based on BCIrsquos findings We are very pleased with our decision to locate in Budapest and I would definitely look forward to having the opportunity to work withBCI Global againrdquo Production ldquoOpening our first manufacturing plant in Europe is a key step to increase our international presence and deliver quality products and dependable solutionsrdquo explainsThomas Welke Senior Vice President of the Global Grain and Protein division of GSI ldquoWhen we decided to expand we wanted to be able to accomplish threeobjectives speed of delivery flexibility of product design and the ability meet local customer needsrdquo Jason Colwell Director of Business Operations ldquoWith this newHungary manufacturing plant we achieve all of themrdquo Jason Colwell explains also the choice for Hungary ldquoCentral location played an important role in deciding to open the plant in Biatorbagy as our main export markets inthe region are Russia Ukraine as well as Hungary and the neighboring countries Now we can deliver tailor-made material handling equipment designed andmanufactured locallyrdquo In addition to this the favorable investment conditions great logistics and infrastructure helped GCI to decide on this location also takingadvantage of the professional workforce as well as quality local suppliers Distribution In addition to manufacturing material handling equipment the factory also functions as a training and distribution center for GSIrsquos complete portfolio of grain poultry andswine equipment Together with the additional 2000 sqm office and warehouse building GSI Hungary Ltd has created 125 jobs by hiring design engineers qualityengineers and colleagues to support logistics and purchasing department as well as several skilled blue collar workers (CNC operator welder etc) The number ofemployees is expected to grow exponentially as GSI plans to triple the production of the Hungarian plant in the next two years AGCO GSI is a global brand of AGCO a global leader focused on the design manufacture and distribution of agricultural machinery which has beenpresent in Hungary already since 2011 when a shared service center opened its doors That year was also marked by the decision that thecompany famous for their brands Challengerreg Fendtreg Massey Fergusonreg and Valtrareg now aims to deliver complex agricultural solutions andacquired GSI Group specialized in grain storage and handling poultry and swine systems More information Josefien Glaudemans email josefienglaudemansbciglobalcom phone +31 24 3790222

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Buck Consultants International opens office in Atlanta

Earlier this year Buck Consultants International opened an office in Atlanta Allison Turner has been appointed as Vice President NorthAmerica She liaises with American companies who want to increase their footprint abroad whether it is in Europe Middle East andAfrica or in the Asia Pacific region

Allison Turner ldquoHaving worked with BCI in the past I am thrilled to join the team BCI has a great reputation for having extensive knowledge andcapabilities in delivering high quality advice to US firms considering to optimize expand or reconfigure their intrsquol operations We have worked withover 1500 companies in 50 countries across many industries We are the industry leader for companies who are searching for expertise in siteselection for their operations supply chain strategies and optimization and new market strategies I look forward to working with many US firms with

a global outlookrdquo Allison Turner (51) has degrees from the University of Alabama and the Erasmus University of Rotterdam (MBA) After having worked for among others the Port ofRotterdam and Nissan in Europe Allison worked as Regional Director for the Netherlands Foreign Investment Agency based in Atlanta GA for 15 years providing manyUS firms advice on setting up foreign operations More information Allison Turner e-mail allisonturnerbciglobalcom Phone +1 404 261 4590

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Buck Consultants International (BCI) carries out research advises implements and performs project management in the areas of strategic business development location selection supply chain strategyregional economics real estate and infrastructure development

Please note Direct reactions to this email can not be read Please send an email to bcibciglobalcom or directly to one of our associates for a prompt and personal reply

Do you know anybody who would like to receive our newsletter please send an email with name function organisation telephone number and email address to silviagroenbciglobalcom

Our mailing address is Buck Consultants InternationalPO Box 14566501 BL NijmegenNetherlands

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