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.
China is well known in the West and other parts of the world. In any store, one will find that most products have been made in China. The Chinese have mastered the art and science of manufacturing. Even Fortune 500 companies in the United States of America normally source from China. Most Western companies have moved production to 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 manufacturer needs different kinds of raw materials. Producing a product can involve sourcing materials from many countries. Most likely, a good deal of the materials needed to make a certain product can be sourced from Asian countries. Most manufacturers end up obtaining their materials from three countries: China, India and South Korea. These are the Asian tigers.
An e-commerce merchant will care a lot about the price per unit of the good that he is sourcing. That is because he is in business and the primary purpose of having a business in the first place is to earn a profit at the end of the day. On the other hand, manufacturers want to obtain raw materials at pocket friendly prices.
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.
China is well known in the West and other parts of the world. In any store, one will find that most products have been made in China. The Chinese have mastered the art and science of manufacturing. Even Fortune 500 companies in the United States of America normally source from China. Most Western companies have moved production to 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 manufacturer needs different kinds of raw materials. Producing a product can involve sourcing materials from many countries. Most likely, a good deal of the materials needed to make a certain product can be sourced from Asian countries. Most manufacturers end up obtaining their materials from three countries: China, India and South Korea. These are the Asian tigers.
An e-commerce merchant will care a lot about the price per unit of the good that he is sourcing. That is because he is in business and the primary purpose of having a business in the first place is to earn a profit at the end of the day. On the other hand, manufacturers want to obtain raw materials at pocket friendly prices.
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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