Material Fragmentation

When products and services are produced by several vendors and component manufacturers, this is called material fragmentation. Since labour is less expensive and more readily available in many regions of the world, businesses frequently create their goods and services there. A supply chain that has been divided up into several sections is said to as fragmented. Simply put, when businesses fragment, they distribute the production process across several suppliers and producers. In order to generate their goods and services, businesses rely on independent suppliers and component manufacturers. Particularly in places with cheap and abundant labour, these companies are frequently spread over many nations. As a result, businesses may make products more cheaply. The development of technology and globalisation allowed for fragmentation. While the primary factors are globalisation and advances in technology Although labour forces, economic conditions, and laws also contribute to fragmentation, globalisation and enhanced technology are the primary factors.