Case Study: My Experience With Businesses

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 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, 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 to this, it was a global practice of manufacturing capital rich goods in areas that have a high population. Although the basic patterns of the localization of industries is still there, the opening up of more markets has intensified the possibilities of industrialization.

With the advancement in technology, sources have opened up significantly. 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 tools, for example, 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 major companies conduct interviews occasionally trying to find the most accomplished applicants. The access to the profiles of applicants online has made the job easier for job providers and companies.

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 critical 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 constantly lies with the organization that employs the most recent technologies. These technological procedures relate to communications, production promotion, advertising, distribution, and promotion. Access to technological resources has allowed manufacturers and marketers to enhance their operational processes thus 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.