The Importance of United Global Sourcing in Providing a Competitive Advantage
In this age of tough competition, it is crucial to lower costs and increase profitability. Among the most practical ways of accomplishing this is to lower the production costs generally accomplished by reducing the procurement prices of different factors of production. Human resources, land, technology, capital, and raw materials are the essential ingredients for a manufacturing unit. As new markets and global sources open up, it has become easier for manufacturers or the producers of services and goods to procure these factors of production at the most affordable rates.
Traditionally, such factors of production were procured from territories or nations which offered the minimal cost. It had been the practice among manufacturers to get funds from economies that are capital intensive and those that are labor intensive. More importantly, it was a global practice of manufacturing capital rich goods in areas that have a high population. Even though the basic patterns of the localization of businesses remains there, the opening up of more niches has increased the possibilities of industrialization.
Sources have opened up greatly with the advancement in technology. The world has become more closely connected with the widespread use of the net. We no longer have to view resources based on the geographical advantage but their availability on a global scale. These resources might broadly be categorized into technological tools such as raw materials and resources and human resources.
Of all the tools which are accessible, human resources is the most versatile and productive. Manufacturers worldwide are always on the lookout for those candidates that are most qualified from over all the globe. Human resource consultants and leading companies carry out interviews periodically searching for the most accomplished candidates. The availability of the profiles of candidates online has made the work easier for job providers and employers.
Companies’ houses and industrial establishments get trained workforce from leading colleges and universities internationally. Experts are now hired regularly from premier technical institutes to get a competitive advantage internationally. Businesses also dedicate a whole lot on the enrichment of individual capital engaged in a variety of levels of production and marketing.
Technology coupled with capital input is the next crucial Factor of production for a unit on general and the economy in general. Technology is also a global resource that is available universally to producers of services and goods. Competitive advantage constantly lies with the organization that employs the most recent technologies. These technological processes relate to communications, production promotion, advertising, distribution, and marketing. Access to technological tools has enabled entrepreneurs and manufacturers to improve their operational procedures thus providing competitive benefits.
Raw materials like minerals or agricultural products are important constituents of a production process. Global accessibility to these has increased the capabilities of sellers and producers.