Tag: purchasing manager
Global sourcing means a strategy to purchase services and goods from other countries so that you will be able to get some vital benefits for your business. This is because different parts of the world will be at different stages in their development and have different cost structures. This can also be because other countries may have raw materials that are not available in your own country or in short supply. Fortunately, to make a successful global sourcing strategy, you can work with a marketing expert in global sourcing and market such as Thomas D’Innocenzi that you can know more on http://www.thomasdinnocenzi.com/.
Here are several reasons you should consider a global resource:
1. Path to raw materials
If your company uses raw materials which are not sufficient in your own country, you will get to lower your supply risk with a global source if the availability of larger materials elsewhere. The economies of scale in extraction may also indicate lower prices even with additional transport costs and tasks taken into account.
2. Path to low wages
Labor-intensive manufacturing processes can be sourced cheaper than countries where wages are lower than in your own country. This is especially right if the technology utilized has a life cycle. Thus, as the technology ages, manufacturers of high wage costs tend to move on to new technologies as features and benefits that bring can be used to set premium prices that offset higher labor costs. Low-cost countries, then, tend to adopt older technologies to produce products for the majority end of users who buy at a price. Even without the effects of this technology, some services can be operated at a lower cost overseas because of lower wage rates. For example, the number of call centers and software developers is now located in India and Eastern Europe.