Determining factory location in a water-stressed African country
Water constraints are a part of daily life in Uganda. As a global beverage company planned to open a new brewery, it sought to understand the impact of water use and waste on Victoria Lake and its feeding rivers. The best location for the new plant in terms of proximity to transportation was inconsistent with the need for a sustainable water supply.
Challenge
A.T. Kearney helped the company determine where to locate its brewery and ensure that its investment strategy was consistent with local environmental initiatives.
Approach
We used a framework to assess locations on 16 dimensions. Three of the dimensions stood out as the most important, accounting for more than half the weighting.
- Proximity to a sustainable water source
- Proximity to current and future customers
- Availability of reliable power supplies (such as electricity).
A new framework was used to assess the comparative value of locations based on these main selection criteria, narrowing the decision to five potential cities.
Results
Hoima and Jinja were the finalist cities in our analyses; Jinja was chosen as the preferred location due to its high overall scoring in all three scenarios (see figure).
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