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. 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 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.
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 constantly on the lookout for the candidates who are most eligible from over all the world. 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 employers and job providers.
Companies’ houses and industrial institutions get trained workforce from leading schools and universities internationally. Professionals are currently hired regularly by premier technical institutes to gain a competitive edge globally. Businesses also devote a lot on the enrichment of human capital engaged in different levels of marketing and production.
Technology combined with capital input is the upcoming crucial factor of production for a unit on general and the market generally. Technology is also a global resource that is available universally to producers of services and goods. Competitive advantage always lies with the company that employs the latest technologies. These technological processes relate to communications, production promotion, advertising, distribution, and marketing. Access to technological resources has allowed entrepreneurs and manufacturers to enhance their operational processes hence providing competitive advantages.
Raw materials like minerals or agricultural products are important constituents of a production process. Global accessibility to these has improved the capacities of sellers and producers.