9 Lessons Learned: Resources
October 12, 2017
Why United Global Sourcing is essential in Offering a Competitive Advantage
In this age of high competition, It’s important to reduce costs and boost 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 has become easier for manufacturers or the producers of services and goods to procure these factors of production at the most affordable rates.
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 importantly, it turned out to be an international custom of manufacturing capital rich goods in regions which have a high population. Even though the basic patterns of the localization of businesses remains there, the opening up of more niches has increased 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 see resources based on the geographical edge, however, 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 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 leading companies carry out interviews periodically searching for the most accomplished candidates. 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 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 crucial Factor of production for a unit on general and the economy in general. Technology is also a worldwide resource that’s available globally to manufacturers of goods and services. Competitive advantage always lies with the company that employs the latest technologies. These technological procedures relate to communications, production promotion, advertising, distribution, and promotion. Access to technological resources has allowed entrepreneurs and manufacturers to enhance their operational processes hence providing competitive advantages.
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.