Covid-19 affected all sector of our life – manufacturing sector have been no exception. Many manufacturer postponed their production in order to stay safe and healthy. After around seven months we live in uncertainty conditions, there have been exciting news about Covid-19 vaccine with some successful trials reported. As quoted from BBC News, Pfizer/BioNtech and Moderna Vaccine reported that their trial results can stop more than 90% of people developing Covid-19 symptoms.
This successful vaccine news of course become a new hope for us to be able to live normal and also a good sentiment for the furniture manufacture industry. As Global Trade Atlas data shows, from January until May 2020, Indonesian furniture export increased 51.3% yoy from US$384,82 million to US$582,11 million. This shows that Indonesia is a great and good quality manufacturing country that you should consider as an importer. Besides, Indonesia is well known as one of the biggest wood exporter. It means that the supply of the furniture material is almost unlimited.
Things you should ensure before importing from Indonesia.
- The hidden risks.
Importing is a high-risk thing to do, you suppose to not only looking for the cheapest price, but also you need to make sure the quality of the product is good and met with your standards. Because you of course do not want to do bunch of work and spend money for a low-quality and easily broken product. Furthermore, you need to make sure that you buy from a healthy and trustworthy manufacturer. Healthy in this case refers to the management, how they treat their workers, the environment, if they are using legal wood as raw material.
- Your supply base.
As an importer, it is a great idea if you diversify your suppliers base. This is needed to avoid medium – high risk source which can be the worst possible things to happen in the future. The U.S.-China trade war has given some importers the idea called “China plus one” strategy to deploy production between China and other Southeast Asian country such as Thailand, Indonesia, or Vietnam. But the geological matter like the 1997 Asian financial crisis or the 2004 tsunami argue for broader geographic diversification. In Indonesia, Bali and Java is known as great furniture manufacture areas. You can diversify your supply chain areas to avoid region wide problems.
What to do to get started?
Consider a partner as your eyes and ears.
Indonesia can be a great source country if you are looking for a good quality and affordable prices product. However, minimizing the risk is also an important things to do in order to maximize the profit. Having a business partner as your eyes and ears to make sure your products come in an conformed quality is a wise act to get started.
Do the Pre-Production Inspection.
Doing the Pre-Production Inspection (PPI) can be the first thing to do to save your time and money in the future, because we are sure that you do not want your customer stake your integrity because you are selling a bad quality products, and moreover spend time and money complaining the damaged and easily broken furniture to the supplier.
This inspection is completed after the identification and the evaluation of your vendor/factory and is performed on-site at the very beginning of the production process. Excellencial provides third-party quality control in Indonesia and our qualified inspectors will check raw materials and components in order to verify that the quality, quantity and also origin specifications are being met.
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