subject: Operating Your Business With Less Overhead Can Provide Substantial Benefits [print this page] Ask any accountant, and he or she will tell you that overhead is a "killer." While the equation can become rather complicated, the bottom line is that being able to remove many types of overhead is usually seen as being a very attractive development. No doubt this is part of what is fueling global sourcing and manufacturing.
Let's say that your company needs to produce wholesale products. In this case, you have a few options. You could build a factory to produce your needed items. This is always an expensive proposition. It costs a great deal of money to get a factory up and going. It also can be a huge strain on your most talented minds. It can be a huge drain on company finances and staff. There is another option. You could choose to use global sourcing for your production needs. This results in huge savings for your company and much less hassle. Many business owners find that global sourcing is the solution to production needs that they have been seeking.
Building a new factory is not a huge expense; it is a lot of work. Precious time that could have been spent developing products, building your business and finalizing plans will be lost. Wasting time is a huge risk in a competitive business market. Your competitors may use your downtime to really get ahead. This can leave you with a big factory and many lost customers. Choosing global sourcing allows your company to bypass the hassle and produce goods without constructing a factory. This makes outsourcing the logical choice for competitive businesses in a difficult market.
Technology is moving faster than ever thought possible. This means that you must constantly stay on top of your game to remain competitive in this market. You must stay on top of new developments to be a viable business in this fast paced market. Time cannot be wasted on building and staffing production sites. While you are busy working, your competitor can easily bring out a new product and leave your business in shambles. You cannot afford to put your business on the line.
Take time to realize the risks associated with building a new facility. There is a better way. You can get the goods you need through global sourcing at a smaller risk than if you build your own facility.
by: Darren Hamels
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