The Role of Logistics in the Overseas Plant Selection Decision Process of United States-Based Multinational Corporations

The overseas facility location determination process is a complex decision. Each firm making that decision will do so under different circumstances and with different objectives. Personal interviews were conducted at 8 corporations with executives who have been involved with a decision to locate a manufacturing facility overseas. The sample firms were selected from members of the Council of Logistics Management and others that met the criteria of having headquarters in the US and having a minimum of one facility outside the country. Three major conclusions were drawn from the results of this study: 1. Managers view logistics as an important variable in the overseas location decision process. 2. Executives generally view logistics as a cost factor rather than a strategic issue. 3. No one variable drives the facility location decision.