Achieve Economies of Sale with Low Cost Country Sourcing Presented By: Dragon Sourcing
Introduction Low cost country sourcing is a necessity in this generation of global competition. In order to achieve economies of scale, it is imperative for producers of goods and services to keep costs at minimum levels. Factors of production include land, capital, raw materials, manpower, and technology. These factors are used in varying proportions depending on the nature of enterprise and the scale of production.
Land No units of production could be set up without land, which is a scarce item. With passage of time, this factor becomes expensive as there is no possibility of increasing its extent. Globalization enables you to look for the cheapest land required for establishing your works. Ideally, this should be located near to your raw material source, or main market area.
Raw Materials Resources can be minerals, agricultural goods, forest products, or any other naturally occurring substances. Global trade has made it possible for manufacturers to source these raw materials from the most affordable source. For instance, sugar cane is available cheaply in India, rubber in Malaysia, timber in Brazil, and iron ore in Russia
Manpower Both land and raw materials are useless in themselves till they are made to go through a process as desired by humans. Human resource is thus the most important and versatile factor of production. Manpower at low cost is usually found in overpopulated nations of Asia and Eastern Europe.
Contact Us Dragon Sourcing Houston 1201 Dulles Ave #7205 Stafford, 77477, USA Phone: +1 832 406 0281 Email: contact.us@dragonsourcing.com Website: http://www.dragonsourcing.com/
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