Industrial development in Indonesia is increasing rapidly, nowadays, many industries are emerging to meet the needs of the consumer. Right now, there are many Indonesian products that are trusted by the Indonesian citizen and are expanding to meet the demands of the Indonesian citizen. There are many industries in Indonesia such as creative industries, textile industry, beauty or cosmetics industry, and the manufacturing industry.
The manufacturing industry is an industry that focuses on one business to create products from semi-finished products to finished products. If you want to know the characteristics of a manufacturing company, you can check the full information below:
Income Comes from Sales
The first characteristic of a manufacturing company is the income comes from sales. The company sells a range of products from semi-finished products to finished products such as household appliances, food, and beverages, to household cleaning products. Manufacturing companies get the main revenue from the sale of products.
Have a Physical Inventory
The next characteristic of a manufacturing company is having physical inventory. Commonly, manufacturing companies sell physical products that can be seen and touched. So, you need physical inventory. Inventories in manufacturing companies can be in the form of finished goods that is ready to sell, raw materials or semi-finished materials.
Manufacturing companies apply a recording system with certain methods to calculate the purchase and the use of raw materials because the product inventory is not small. Besides checking the supply and the use of raw materials, the products that have been produced must be recorded and checked.
Companies must pay attention to records because the company's income comes from the sale of products and goods, so if there is a mistake in recording the products or there are lost items, it will harm the company.
The next characteristic of a manufacturing company is there is a manufacturing activity. Furthermore, manufacturing activities that are usually done are processing raw materials or raw products into semi-finished products or finished products that are ready to sell to consumers or customers. If there is no production in a manufacturing company, it is impossible for a manufacturing company to run.
Production Costs Include Raw Material Cost, Labor Cost, and Overhead Cost
The next characteristic of a manufacturing company is production costs include raw material costs, labor costs, and factory overhead costs (BOP). The cost of raw materials is the cost of using raw products as the main material which then goes through the production process stage. Furthermore, labor cost is the cost incurred for the work of all employees involved in the production process, both operational employees and managerial employees.
The last is factory overhead costs (BOP) is the costs incurred for the use of auxiliary materials or other indirect costs. The company still need to charge BOP or factory overhead costs because these costs support the production process, even though the cost is not absorbed directly on the product. The examples of factory overhead costs or BOPs are the costs of factory machine maintenance, communication costs, electricity costs, and other costs.
Well, those are four characteristics of manufacturing company. To support manufacturing activity, it is better if the company build the warehouse or plant in the strategic industrial estate. One of the strategic places to build or to run manufacturing company is Karawang New Industry City.
Located near the capital city of Jakarta and has 6 access such as Jabodetabek LRT, Trans Java toll road, Jakarta-Cikampek toll road, Jakarta-Bandung Railway, Kertajati international airport, and Patimban port make KNIC a suitable location for building Industrial warehouses and manufacturing company.