Last Updated on Mar 31, 2022 by James W
If you manage a manufacturing business, you’ll need raw materials to make your end product. Raw materials—aka feedstock—are unprocessed materials used in the production of goods. They are the lifeblood of every manufacturing business, thanks to the critical role they play in making the finished product.
If you run a manufacturing business, you’ll want to use the best of everything in your manufacturing process; the best equipment, team, facility, and raw materials. Selecting the best raw materials can be a hassle, especially if you don’t know what to look for. Lucky for you, we do, and we are willing to share them with you.
Here are a few things to consider when buying raw materials for your business. However, before we go into that, let’s look at what raw materials are.
What are Raw Materials?
Wood is used to produce chairs, tables, and doors, hence, it is safe to say that wood is a raw material used in the production of furniture.
Get the idea? Here is a terse definition.
Raw materials are materials or substances used in the production of goods. They are an essential component of inventory for any manufacturing business, and thus, managing the inventory of raw materials becomes essential too.
For example, calcium obtained from the sedimentation of the shells of small fossilized snails, shellfish, etc., is used as a raw material in soap and detergent production, glass making, and the paper industry. That’s not all! There are other helpful uses of calcium carbonate, and they cut across several industries, including the construction and healthcare industries.
What to consider when buying raw materials for your business
- Vendor Portfolio
Whether you manufacture plastics, rubber, cement, wood, or utensils, you’ll need to source raw materials from a supplier. Unfortunately, finding a trustworthy vendor that sells quality raw materials can be challenging in the current economic setting. Hence, before you order oil, wood, honey, or any other raw materials for your business, ensure it is coming from a reputable source.
And how do you do that? There are two options.
You can decide to research the vendor, including their materials, to determine if they align with your requirements. Alternatively, you can speak to past customers to understand the nature of their raw materials.
Whatever you do, don’t buy raw materials without doing the necessary research as a defect in your product due to low-quality raw material can cost you money and your business reputation.
- Cost vs. Quality
It is common practice to focus on buying cheap raw materials to save money. While such a move makes sense, it may hurt your business. Most times, low-quality raw materials are sold at a low price, while the best are usually somewhat expensive.
If you use low-quality materials to manufacture your product due to your eagerness to save money on production costs, you may lose customers. That’s not all! Some low-quality materials can damage your equipment, causing the manufacturing process to stop or be delayed.
So what do you do?
Ignore the urge to purchase cheap raw materials. However, this doesn’t mean that you should often set your sights on expensive raw materials. Instead, do your research on both materials, including the supplier, so you make a fair deal on both quality and price.
- Environmental Effect
In the United States, manufacturing accounts for almost a quarter (23%) of direct carbon emissions, based on the Environmental Protection agency. The carbon emitted by manufacturing companies has contributed negatively to the earth’s climate, causing global warming.
As a responsible individual, it makes sense to ensure that the materials you use are derived from an eco-friendly source and have minor to zero effects on the ecosystem. This is one of the reasons why you should inspect your supplier’s certifications and permits as part of your investigation efforts.
- The Supplier’s Location
If you are a furniture maker, you’ll need raw materials like timber or wood to make chairs, tables, and other furniture. While searching for the ideal timber or wood supplier to source raw materials, it is advisable that you consider a supplier close by, rather than one far away. Doing so will help you save costs from transporting the raw material from the supplier to your wood shop.
While searching for vendors around, ensure you go for one that sells quality materials. If there aren’t any around, you can consider those far away. Quality materials will always result in quality products, so ensure you don’t compromise quality to cut corners.
Implementing the tips above when looking to buy raw materials will help you save money and procure quality materials. With quality raw materials, you can make quality products that boost your business reputation.