Why United Global Sourcing is essential in Offering a Competitive Advantage
In this age of tough competition, it is important 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 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, 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 is now more closely linked with the widespread use of the internet. We no longer have to view resources based on the geographical advantage but their availability on a global scale. These resources might broadly be classified into technological resources like raw materials and capital and human resources.
Of all the tools which are accessible, human resources is the most versatile and productive. Manufacturers worldwide are constantly on the lookout for the candidates who are most eligible from over all 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. 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 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 is available universally to producers of services and goods. Competitive advantage constantly lies with the business 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 important constituents of a production process. Global accessibility to these has increased the capabilities of sellers and producers.