It started with a couple of youtube channels from Nepali industrial equipment suppliers, I finally figured out the missing connection I had never considered in my understanding of 'how things are made'. And how custom hardware is made. And how PCB's work, and how supply chains work. And how value-add works in logistics. Like take transportation in Nepal. It's hella expensive because of various supply issues. You want to optimize the value of the transported goods: since you're paying by the kilo, the more expensive (aka 'value add') the good you're transporting is, the lower the proportion of transport costs, and therefore more efficient. If you're spending 100Rs to transport mangoes worth 1000Rs the transport costs are 10% of the item. If in the same weight you're transporting processed items (mango juice, dried mangoes, etc), then you've got, say 10k Rs worth of goods that still take 100Rs to transport, meaning your transport costs are only 1% of your costs. Additionally, if you're moving equipment to where the raw material is (aka decentralized processing) to add value to industrial goods, you're saving on production costs in terms of manpower costs, rent, etc. Which means you want to transport your machines to where the fields are and to in-situ processing. One downside of this is that if your production pipeline is not supply heavy, your capital efficiency is not very high. Aka you're using your expensive machines only 10-20% of the time, meaning your averaged capital costs could be higher. But then capital costs could not be that high of a proportion of your expenses, or they might not even matter. So it's not a big deal.
Anyway, it's super interesting to learn of these this, my understanding of the world has expanded pretty wide. I hope to have a lot more of this understanding. So rich.
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