In most business circles, low-cost country sourcing is a hot topic. This is a procurement strategy that involves acquiring materials from nations that have lower production and labor costs. Doing so will cut operating expenses. When talking about low-cost country sourcing, the thing that will immediately come to mind is sourcing Asia. Over the last few years, the number of European, American, and African businesses that source goods from Asian countries has increased ten fold. That is because it costs a lot of money to source goods from American and European companies.
Asia is a big continent. It is bigger than Europe and the Americas. There are a number of Asian tigers where goods can be sourced from. They include China, India, Japan, Hong Kong, Taiwan, South Korea, Singapore, and Malaysia, among other countries. Most of these countries rose from obscurity to become industrial powerhouses in a matter of decades. Japan is the leading auto exporter.
According to many top economists of Ivy League institutions, China is simply the factory of the world. The Miracle by the Yangtze River is a story that most scholars usually like to talk about. Almost every product is produced in China. The Chinese produce consumer goods. They also make business and industrial goods. From cars to baby products, they are all made in China.
The good thing about procuring from China is that one will obtain products at a cheaper price. That is because the labor costs in China are very low. Also, there is already an infrastructure that one can take advantage of. However, with China, there exists a language barrier. One can decide to source from India which is an English speaking country.
A company can source raw materials. These can be obtained from a number of countries. For the case of a car manufacturer based in the West, there are a number of raw materials that are required so that to be able to assemble a vehicle. On the other hand, an e-commerce merchant can source finished goods so that to be able to sale them for a profit.
For the case of e-commerce merchants, it is all about sourcing stuff at a low price and latter selling the stuff sourced at a higher price so that to be able to make a profit. The same will also apply to a manufacturer. He will want to source raw materials at the lowest price possible for profit maximization purposes.
The issue of cost will not fail to cross the mind of a manufacturer or an e-commerce merchant. In the world of business and commerce, it is all about minimizing costs as much as possible and subsequently maximizing incomes. The reason why manufacturers usually look towards Asia is because of the need for low cost raw materials. The price matters a lot.
Asia is known for many good things. Some of the best tourist destinations are in Asia. Also, Asia is the place where entrepreneurs and manufacturers usually go to when they want to source products at great prices. Before doing anything, an individual should have a plan. One should dedicate time and effort to the planning activity. After planning, one must implement the plan in the best manner possible.
Asia is a big continent. It is bigger than Europe and the Americas. There are a number of Asian tigers where goods can be sourced from. They include China, India, Japan, Hong Kong, Taiwan, South Korea, Singapore, and Malaysia, among other countries. Most of these countries rose from obscurity to become industrial powerhouses in a matter of decades. Japan is the leading auto exporter.
According to many top economists of Ivy League institutions, China is simply the factory of the world. The Miracle by the Yangtze River is a story that most scholars usually like to talk about. Almost every product is produced in China. The Chinese produce consumer goods. They also make business and industrial goods. From cars to baby products, they are all made in China.
The good thing about procuring from China is that one will obtain products at a cheaper price. That is because the labor costs in China are very low. Also, there is already an infrastructure that one can take advantage of. However, with China, there exists a language barrier. One can decide to source from India which is an English speaking country.
A company can source raw materials. These can be obtained from a number of countries. For the case of a car manufacturer based in the West, there are a number of raw materials that are required so that to be able to assemble a vehicle. On the other hand, an e-commerce merchant can source finished goods so that to be able to sale them for a profit.
For the case of e-commerce merchants, it is all about sourcing stuff at a low price and latter selling the stuff sourced at a higher price so that to be able to make a profit. The same will also apply to a manufacturer. He will want to source raw materials at the lowest price possible for profit maximization purposes.
The issue of cost will not fail to cross the mind of a manufacturer or an e-commerce merchant. In the world of business and commerce, it is all about minimizing costs as much as possible and subsequently maximizing incomes. The reason why manufacturers usually look towards Asia is because of the need for low cost raw materials. The price matters a lot.
Asia is known for many good things. Some of the best tourist destinations are in Asia. Also, Asia is the place where entrepreneurs and manufacturers usually go to when they want to source products at great prices. Before doing anything, an individual should have a plan. One should dedicate time and effort to the planning activity. After planning, one must implement the plan in the best manner possible.
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