In general, it can be said that manufacturing is an activity to process one or several materials into other goods that have greater added value. Manufacturing activities can be carried out by individuals or manufacturers or by companies or manufacturing companies. While the manufacturing industry is a group of similar companies that process materials into semi-finished goods or finished goods with greater added value. Learn more about the development of the manufacturing industry in Indonesia, what are the challenges of the manufacturing industry, and how to deal with it.
Apart from unstable national and international economic conditions, there are various challenges that the manufacturing industry must face. The following are some of the main challenges in the manufacturing industry:
1. Difficulty in predicting product demand
7 Challenges of the Manufacturing Industry & How to Overcome The main problem is that producers do not have sophisticated reporting tools that allow them to estimate how much they should sell in the next few months or several years. As a result, goods produced are not in accordance with what the customer needs.
In order to find out how many customer requests for each product, each manufacturer should have software with accurate reporting features. So that it can facilitate them in targeting sales and estimate how many products they should sell in the future. In addition to utilizing software to make accurate forecasts, each producer also needs to consider based on external events such as currency exchange rates, rising fuel prices, current market trends, and so on.
2. Difficulties in controlling inventory
7 Challenges of the Manufacturing Industry & How to Overcome It Inventory management is still one of the challenges of the manufacturing industry. But thanks to the help of automated solutions, the process has become simpler. But unfortunately, currently there are still many small-scale producers, still managing their material inventory manually. Manually checking stock is very inefficient and prone to errors that can lead to inaccuracies in calculations.
To avoid purchasing unnecessary raw materials and equipment or to avoid inventory shortages that lead to customer dissatisfaction, a good inventory management strategy is needed. Routine audits and inventory checks are important to do as a process of identifying nonconformities in the data and the actual number of items. Barcode scanners can also be used to speed up the checking process.