Why United Global Sourcing is Critical in Providing a Competitive Advantage
In this age of tough competition, it is crucial to lower costs and increase profitability. One of the most practical ways of achieving this is to lower the production costs usually achieved by reducing the procurement costs of various 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, such factors of production were purchased from territories or countries which offered the minimal price. It was the practice among producers to source capital from economies which are capital intensive and those who are labor intensive. More to this, it was a global practice of manufacturing capital rich goods in areas that have a high population. Even though the fundamental patterns of this localization of businesses remains there, the opening up of more niches has intensified the possibilities of industrialization.
With the advancement in technology, sources have opened up greatly. The world has become more closely linked with the increased 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 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 access to the profiles of applicants online has made the job easier for job providers and companies.
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 edge 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 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 resources has allowed manufacturers and marketers to enhance their operational processes thus providing competitive advantages.
Raw materials like minerals or agricultural products are critical constituents of a production procedure. Global accessibility to these has increased the capabilities of sellers and producers.