Why United Global Sourcing is Critical in Providing a Competitive Advantage
In this age of high competition, It’s important to reduce costs and boost 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’s become easier for manufacturers or the producers of services and goods to procure these factors of production at the lowest prices.
Traditionally, these factors of production were bought from territories or nations which offered the minimum cost. It had been the practice among manufacturers to get funds from economies that are capital intensive and those that are labor intensive. More to this, it was a global practice of manufacturing capital rich goods in areas that have a high population. Although the basic patterns of the localization of industries is still there, the opening up of more markets has intensified the possibilities of industrialization.
Sources have opened up greatly with the advancement in technology. The world is now more closely linked with the widespread use of the internet. We no longer need to view resources depending on the geographical edge but their availability on a worldwide scale. These resources might broadly be classified into technological resources like raw materials and capital and human resources.
Of all the resources which are available, human resources is the most productive and versatile. Manufacturers worldwide are always on the watch for those candidates that are most qualified from over all of the world. Human resource consultants and major companies conduct interviews occasionally trying to find the most accomplished applicants. The availability of the profiles of candidates online has made the work easier for employers and job providers.
Companies’ homes and industrial institutions procure trained workforce from top schools and universities globally. Experts are now hired regularly from premier technical institutes to get a competitive advantage internationally. Businesses also spend a lot on the enrichment of human capital engaged in various levels of marketing and production.
Technology coupled with capital input is the next critical factor of production for a unit on general and the economy in general. Technology is also a global resource that’s available universally to manufacturers 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 such as agricultural products or minerals are Important elements of a manufacturing process. International availability to these has improved the capacities of vendors and manufacturers.