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Hidden Costs of Corporate Relocation: Protecting Your Assets

Through careful planning and vetting potential relocation service providers, companies can minimize hidden costs and maximize the opportunity of a business move.

Mike Gonzalez, President, Armstrong Relocation (2011 Directory)

(page 2 of 3)

Advanced planning is critical. Relocation analysis can take several months on average. While company size creates variables, planning should begin nine months out. The scope of the entire operation must be clearly defined to avoid costly change orders, which significantly increase price. Planning should focus on packing time and the actual time required to transport corporate facilities and heavy industrial equipment. The relocating company must work closely with its provider to determine the work`s extent, the time needed, and, most importantly, what it will cost.

Expect the relocation company to understand every component of your operation the move affects. Based on size and scope, a phased approach allows a company to remain fully functional throughout the transition.

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Avoid the hidden costs of corporate relocation with these quick tips. Click to enlarge.

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Roles and Responsibilities - A successful relocation means a company must understand how to work effectively with its relocation partner. All parties have their responsibilities. For instance, employees must be instructed on collecting personal items and work materials for efficient packing and transfer. Facility common areas present a primary hidden cost that creates change orders. These areas are not the responsibility of a specific individual, but must be prepared for relocation. Storage rooms, supply closets, and other locations must be secured to avoid excessive costs. Conducting the process haphazardly is a sure way to create invoice overages that are easily avoided.

Avoiding Surprises
A Sound RFP - To mitigate the costs of lost productivity and overwhelmed administration, partner with a full relocation specialist. These providers streamline relocation and alleviate potential burdens. Relocations can be highly stressful, so it is important to relieve the internal team of as much of this arduous task as possible.

Some relocation companies manage many industries, while others focus on specific verticals. Individual organizations must conduct due diligence to identify a suitable provider that fits the company's needs.

Analyze at least three prospects and request references to make an informed decision. A quality provider will offer a complete array of services for domestic or international relocations, from real estate management to moving and storage, and immigration and repatriation for overseas moves.

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Issuing an RFP is highly recommended to secure potential relocation partners, but they should be crafted to eliminate undesirable suitors. Considering some key points, companies can develop an RFP to secure the right candidate to execute a successful move in terms of both performance and price. These points include:

• Comprehensive Solution: To avoid productivity losses and smooth a long-distance move, a provider should offer complete turnkey services, from packing, moving, and storage of employee household items, to helping workers find housing.

• Industry Experience: A relocation partner must have specific industry experience and the references to prove it. They should be meticulous planners and trusted counselors throughout the process. Ongoing access to leadership executives is also important. If an issue arises, the partner must be able to immediately contact a company leader.

• Employees and Equipment: Consider working with full-time employees. A company that solely uses contractors suggests a lack of training and accountability. A relocation provider should also have a large fleet of modernized trucks to avert property damage, as well as global resources to support the relocation regardless of destination.

• Insurance Certification: Adequate insurance will protect property and access to new facilities. Without appropriate insurance, property owners have been known to bar a company from moving into their new location. Besides cargo insurance, competent relocation providers will assume responsibility of goods during a move, and in some cases hold drivers liable for damage. That's extra motivation and accountability for a job well done.

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About the Author

Mike Gonzalez, President, Armstrong Relocation
Mike Gonzales is president of Armstrong Relocation, a 50-year-old global provider of customized and comprehensive moving solutions based in Dallas since 1975.

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How can companies prevent employees from using business time for personal relocation?

Preventing employees from spending allotted business hours planning for their pending personal relocation can be avoided by lending some simple assistance. More
- Mike Gonzalez, President, Armstrong Relocation

What are some warning signs companies should heed when selecting a relocation provider?

It boils down to the old adage, "If it sounds too good to be true, it probably is." More
- Mike Gonzalez, President, Armstrong Relocation

How can a company turn around a relocation that is going sour?

From a corporate perspective, if it is apparent that a relocation is going bad, it is important to involve leadership executives and/or senior managers from the relocation provider as soon as possible. More
- Mike Gonzalez, President, Armstrong Relocation

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