Rabu, 01 September 2010

1st assignment Risk in a Local Company


PT Iprima Nusa Permata Dianmas founded in 1997 in Jeblogan Village, Ceper, Klaten, Jawa Tengah. The founder of this company was Mr.Drs. Glen Lino, MBA and Mr. Roy Lino. Both of them created this company in 1997, which produced furniture. This company, in the beginning have already used machine in their production process. They have 175 employees at the first. In 2001 this company moved to Jl.Raya Bakalan No 741 Dk. Bakalan, Ceper, Klaten, Central Java, now their factory is in Jalan Raya Solo -Klaten km 29.4 and had their own marketing office which located in Jl. Danau Sunter Selatan Blok O-5 Kav. 19 Sunter Agung Podomoro Jakarta 14350 (PO BOX 272- JKU14003)

From 2009 this company focuses in export, by concentrating in the Hospitality project (Store, Café, Shop).Partnership with design and Interior Company which is famous in Belgian that is Creneau International.

The project that company did is:

a) BBC (Belgian Beer Café)

This cafe built by Beer Company that originated from Belgian. They already have 105 stores all over the world like in Europe, U.S, Asia, and Central East.









a) Cho Gao Restaurant ( Specialist Asia Food )

Restaurant that uses Oriental concept in the 15th century, they already have 13 outlets in the world

Company Activities

- Build and operated manufacture facility (machine, mill, saw) to produce furniture

- Produce and Sell Furniture in foreign country, and in domestic.

- To buy raw material, and secondary material that needed in the production process.

- Held shows and exhibition, and also keep the relationship with customer to expand the market and increases demand.

Because this company is a manufacturing company they have many risk such as internal risk , and external risk. This company need to keep their standard of quality to meet the consumer expectation. In internal itself they have many risk especially in their production. Some of them are:

A. Cost of Production

The company need to set the cost of production carefully before they begin the production process. Because this component is very important in set the price of the product.

B. Supplier that provide the raw material

It is need for the company because this element is give an impact in the quality of the product. There is a case that the company have losses because the quality of the raw material isn't the same.

C. Quality of the Product

Very important in the company to monitoring the quality of the product. That the product have already same with the customer need and want.

D. Worker Safety

Because this company operates with machine, and other tool that dangerous. This company have faced many case like unfortunately hit by hammer in the assembling process, eye irritation because of glue or pulp, scratch or cut by knife.

From the external risk this company faces risk in the export. Many cases happened related to economy and the provision of export and import document like :

1. BOL (Bill of Lading)

Company need to manage the export well, including provision of document, to accept this Bill of Lading. For the seller this is used to obtain the money, and for the buyer it is used to take the goods from the shipping)

2. COO(Certificate of Origin)

Certificate that tell about the origin of the product

3. Carrier and Delivery Service.

There are many cases that happened in this carrier and delivery service. The client/buyer choose their own carrier that can make difference between seller and buyer want in the delivery service.

4. L/C (Letter of Credit)

It have many risk because the information this document must match with the information in the Bill of Lading. The different will make the product can't be take at that time, it can give loss to the buyer, and seller.

5. TT(Telegram Transfer)

This company have faced a big loss because of this Telegram Transfer. This is like the payment system used by people who have already well known.

6. Rupiah Exchange Value

It can make the company have a loss because the rupiah when the product is produce, and when the product is sell is different.

How The Company Manage The Risk?

In the internal risk what the company must do is calculate the production cost accurately, to prevent the missed calculation or missed data. It is need to have a good relationship with supplier, and choose the right supplier that can provide the raw material that meet the standard of the company. It also need to set the standard of the raw material that the company want to use. In quality control the company make sure that the quality of product meet with customer want. In worker safety what the company need to do is give the safety equipment to the worker to prevent the accident in the workplace like safety eyewear, thick hand gloves, boots, mask, and the other equipment.

In the external risk it is more complicate because the company must see from many side to make sure that there is no problem in the delivery process. Manage the transaction process and delivery process carefully with the client include choose the right carrier, container, shipping point, the dispensation, system payment. It is risky to use Telegram Transfer because it can cancelled because the buyer or seller cancel. It depend on the situation if the client and the company have known one and another well it's okay to use TT. It is simple. Letter of Credit is safer because this have become the official payment system in international trade. It is good to adjust the quality and delivery time to the client clearly. Before deliver the goods between seller and buyer need to discuss first. So in external risk it is more complicated because the risk not only for company but can also for the client.

Thx