In an industry, we cannot ignore the importance of raw materials. Every product produced by a raw material company like Korindo Group, must require careful production and finishing, so the raw materials product can be produced and get into the hands of customers well.

The use of raw materials themselves is not only used in heavyweight industries, small industries also need raw materials. Whether for large companies or home industries, raw materials are the most important part that must be owned.

Main Challenges and Solutions for Raw Materials Supply in Korindo Group

There are some challenges in producing raw material for the industry. Take a look at below explanation.

1. Predicting Demand for the Product Itself

Currently, we can still find difficulties experienced by many manufacturers, especially in predicting demand from customers that may occur in the future.

The main problem is, they as producers do not have tools to report that are already using advanced technology, which can help them estimate how much they can sell in the next month or the next year. This ultimately results in the goods produced no longer matching what the customers demand.

Solution

To be able to know how much customers demand for all products, it is better if you as a manufacturer already have software, that has features for specialized and accurate reporting. So, with this, you can make it easier to target production and estimate how many products to sell.

2. Controlling Inventory

This is one of the challenges commonly faced by business people. Raw materials, indeed, will not always be available. That is why it is difficult for a company like Korindo Group to know exactly about the inventory of raw materials they need for the production process.

Controlling raw material inventory is not an easy thing, and this is quite a challenge for producers who need raw materials such as wood or other materials, for production either on a large scale or small scale (Home Industry).

Solution

To be able to overcome this kind of inventory problem, the solution you can choose is very easy. You just need to have a good, thorough inventory management strategy.

You can also conduct audits and checks on the availability of raw materials on a regular basis, to maintain the stick of raw materials that you have, so that it can help in identifying if there is a discrepancy in the data and the number of items available. This can also help the person in charge to be able to know the real-time inventory of raw materials.

3. Improving Efficiency in the Factory

One of the challenges in an industry that uses raw materials is improving product efficiency. Until now, manufacturers themselves are still looking for the right and effective way to help reduce costs and increase efficiency in their factories.

In the end, many manufacturers prefer to sacrifice the quality of their products just to reduce their production costs. However, this will actually reduce the profitability of the producer, because there can be customer dissatisfaction and can have an impact on the sale of their products.

Solution

One of the best solutions that can optimize the level of efficiency in the factory is to modernize the process, to systemize the workflow. Manufacturers also urgently need to reduce the types of work that waste time and effort. Manufacturers also need to reduce material waste optimize the use of tools in production and must also minimize damage.

4. Improving ROI

This is one of the challenges that we also encounter quite often in industries that use raw materials. Winning obviously, manufacturers do want to increase their ROI, and usually, they choose to increase the price of their products and increase their production.

However, the problem is that this is not a good and effective way, especially when the economic conditions are in uncertain conditions like now, in fact, this will only reduce the purchasing power of the consumers themselves.

Solution

To be able to increase this ROI itself, you can use several methods such as the following below.

• Increase sales with the right strategy
• Updating marketing strategies
• Reduce costs

5. Raw Material Limitations

One of the challenges faced by many industries today is the availability of raw materials. Sometimes, the supply of raw materials becomes very scarce, thus disrupting the production process. This raw material supply problem can ultimately have a negative impact on the sustainability of a company.

The scarcity of raw materials is the result of miscalculations and the inability of manufacturers to develop their own raw materials, by making this kind of mistake, manufacturers will eventually run out of their raw material inventory, due to overuse and no renewal.

Solution

The easiest solution to overcome the scarcity of raw materials is to replant trees if your industry is an industry that requires wood for its raw materials. Afforestation is the best solution, as it provides producers with raw materials that will always be available so that the production process can continue.

6. Mistakes in Processing Raw Materials

One of the challenges for many manufacturers is the processing of raw materials. Errors in processing these raw materials result in the loss of raw materials and can have an impact on the existing supply of raw materials. Of course, mistakes in processing raw materials also greatly affect the production you do. So this causes a reduction in the supply of raw materials you have. This kind of mistake is a common mistake, so it is indeed a challenge that is still often encountered.

Solution

Be more careful when producing. Improving the quality of human resources is also very important to help minimize mistakes made when working.

Korindo Group is one of the companies that pioneered the movement to care more about nature, by doing reforestation, to having an environmentally friendly factory. The company itself is the largest supplier company in Southeast Asia.