The Importance of United Global Sourcing in Providing a Competitive Advantage
In this age of tough competition, it is important to lower costs and increase profitability. Among the most practical methods of accomplishing this is to decrease the production costs generally accomplished by cutting back on the procurement prices of different factors of production. Land, human resources, technology, capital, and raw materials are the critical ingredients for a manufacturing component. As new markets and international sources open up; it’s become easier for producers or the manufacturers of goods and services to buy these factors of production at the most economical 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 importantly, 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 significantly. 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 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 lookout for those candidates that are most qualified from over all the globe. Human resource consultants and large organizations carry out interviews periodically trying to find the most accomplished applicants. 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 edge 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 crucial 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 like minerals or agricultural products are important constituents of a production process. Global accessibility to these has increased the capabilities of sellers and producers.