7 Manufacturing Industry Challenges & How to Handle It

In general, it can be said that manufacturing is forgetful will the activity of processing a material or some material into another item that has greater added value. Manufacturing activities may be carried out by individuals or manufacturers as well as by enterprises or manufacturing companies.

Meanwhile, manufacturing industries are a group kind of enterprise that processes ingredients into half-stocked goods or more-value-added goods.

Challenges Fragile Faced by Manufacturing Industry

Learn more about m industry development manufacturing in Indonesia, what are the challenges of the manufacturing industry, and how to deal with them. In addition to unstable national and international economic conditions, there are various manufacturing industry challenges to be faced. Here are some of the key challenges in manufacturing industry:

Difficulty in predicting product demand

What is the main issue is the manufacturers not has advanced reporting tools that allow them to estimate how much they should sell in the next few months or several years. As a result, the manufactured goods do not match what the customer needs. In order to know how much asked the customer for each product, then each manufacturer preferably has software with accurate reporting features.

So that it can facilitate them in targeting sales as well as estimating how many products they’d better sell in the future. In addition to utilizing software to make accurate forecasts, each manufacturer also needs to conduct considerations based on external events such as currency exchange rate movements, rising fuel oil prices, current market trends, etc.

Difficulty in inventory control

Inventory management (inventory control) is indeed the heck being one of the challenges of manufacturing industry. But thanks to the help of technologies that deliver automated solutions such as using applications for warehouse stock monitors, then the process will become simpler. With a logging warehouse application you will be spared human error and will become more organized. Unfortunately, however, today there are still many manufacturers whose business is small-scale, still manage their material supplies manually.

Performing a stock check manually is very not efficient and error-prone which may result in inaccuracies in calculations. To avoid unnecessary purchases of raw materials and equipment or to avoid inventory shortages leading to customer dissatisfaction, inventory management strategies the good is indispensable. Regular inventory audits and inspections are important to perform as an identification process for mismatches on data and b counts actual charcoal. Barcode scanners can also used to speed up the checking process.

Difficulty in improving efficiency in factories, hand manufacturing business

To date manufacturers are still looking for an effe wayktif to reduce costs and improve efficiency in their manufacturing plants. Many manufacturers are choosing to sacrifice product quality for the sake of reducing production costs. But this way will actually lower profitability, because dissatisfied customers will stop buyingn purchases. One of the most effective ways to optimize efficiency in manufacturing plants is by modernizing processes and systemizing workflows.

Manufacturers need to reduce those jobs that mwaste a lot of time and energy. In addition, manufacturers also need to reduce material disposal, optimize the use of production equipment by minimizing damage, and simplify the supply chain. Enterprise Resource Planning (ERP) systems can facilitate all things built-int so that it can help the manufacturer achieve optimal efficiency.

Difficulty in improving ROI

Each manufacturer definitely wants to increase ROI by easy. Generally, they choose to multiply production or increase product prices. But this is not an effective way especially when economic conditions are uncertain and thus may lower the purchasing power of consumers. ROI enhancements can be done with multiple carsa. The first is to increase sales with the correct strategy.

Manufacturer needs to define return, cause ROI can includes higher sales, increased revenue, greater profit, reduced overhead or production costs, higher employee retention, and better customer satisfaction. Then, the manufacturer needs to make a yardstick to get the return on investment the optimum. The second is to update the marketing strategy by utilizing digital marketing, as it costs less than the conventional way.

a shortage of qualified

This is because workers are currently the quality manufacturing of a generation of baby boomers has already begun to leave their jobs. To address the shortage of quality manpower, manufacturers must be creative in conducting employee recruitment.

Namely by relying on various online a platform to post job openings. Manufacturers should be completely selective when selecting prospective employees and ensure that they are able to work quickly, according to the target, under pressure, and not object to a trial work schedule. In addition, manufacturers should also be able to facilitate new employees and old employees with periodic training to help increase the potential of such employees.

Difficulty in managing vendor prospects

Other challenges frequently faced by manufacturers are in terms of managing and prioritizing sales prospects. The most frequent mistake made by manufacturers is treating prospects in the same way. In fact, each prospect must be treated specifically, because each one of the prospects body different characters, preferences, and needs. Manufacturers also often have difficulty identifying potential prospects so they often focus on non-promising opportunities and forget to follow up with prospects who have high potential to be new customers.

Manufacturers must be thoroughly understood against their prospects. This can be done when the sales team contacts or encounters the prospect directly, and it can also be by viewing the prospect information. Manufacturers should have one system that makes it easy for them to store, manage, and track inform prospects easily.

Confusion on the advent of bar technology

Emergence of new technology does often terode every year. It covers IoT, robot, and manufacturing software. The emergence of such advanced technologies certainly leaves manufacturers feeling confused. Avoiding technology is of course not a good choice. Because every manufacturers do have to be adaptable to any change, including technology, to be able to compete in competitive manufacturing industries. Currently, there are already online warehouse applications that make it easier in management of inventory management and calculation.

However, manufacturers should preferably not in making the decision to implement automated solutions in their factory. The best way that manufacturers can do is to discuss with all stakeholders and engage their employees to know the difficulties they face everyday fire. Manufacturers also need to consider a company’s budget to determine whether or not the company is ready to invest in the desired technology.


After knowing various challenges industry manufacturing the ways that can be done to meet and address those challenges, now manufacturing industry players will be more steady in stepping forward. Use the help of an online accounting software that can ease the management of the financial operation of a business. Journal accounting software present comes with a range of best-of-breed features that can be used easily and practically.

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