Logistics and market
localization of Diamant Boart industrial activities

Context

In 1993 the new European single market offers an opportunity to relocate and use the improvements of the economic environment. The diamond tool company Diamant Boart has its research department concentrated in Brussels and production activity distributed all over Europe (France, Spain, Portugal, Italy.).

Customer Demand & Needs

•  Can Diamant Boart improve its profits and its value by using the European single market and localise in a different way?
•  By how much and according to which localization strategy?

Benefits for the population to be presented by the Mobility-cell

•  Optimal localization proposal
•  Value of the company can be increased by 5 million €
•  The optimal location solution for the company's activity was accepted partially by its holding, but the total calculated, which could have been earned, was made available to the CEO of Diamant Boart to increase his investments in research.

Work done

•  Construction of a Diamond tools model for the European market: an econometric demand model for the European countries (in function of sales prices.), a supply model with alternative technologies, a transport model , a cost model, all three in function of the localizations of the production, and finally a sales unit price model (in function of unit costs).
•  The scientific methodologies used are crucial. See section Our Expertise.
•  Project alternative scenarios for given sets of disinvestments and investments in the European locations and given that technological research is located in Brussels.
•  Explain the alternative solutions to the Management Board

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