In our factory production plans, we have united our self-owned factory along with raw material factories to achieve advantages:

1. Cost Savings:
   • By integrating the supply chain, companies can reduce transportation costs between the raw material supplier and the product factory.
   • Eliminating intermediaries can lead to lower procurement costs and better negotiation power over raw material prices.
2. Improved Efficiency:
   • Streamlined processes between the two factories can lead to faster production cycles and quicker turnaround times.
   • Just-in-time (JIT) manufacturing becomes more feasible, reducing inventory holding costs and minimizing waste.
3. Better Quality Control:
   • Having direct oversight over the raw materials used in production allows for tighter quality control.
   • Ensuring that the raw materials meet the necessary standards before processing can improve the overall quality of the final product.
4. Increased Flexibility:
   • Integrated operations can adapt more quickly to changes in demand or market conditions.
   • Adjustments to production schedules and raw material usage can be made more efficiently and responsively.
5. Enhanced Coordination:
   • Communication between the two factories is streamlined, reducing miscommunications and errors.
   • Coordinated planning and scheduling can lead to more efficient use of resources and capacity utilization.
6. Reduced Lead Times:
   • Shorter lead times from raw material procurement to finished product delivery can improve customer satisfaction and responsiveness to market demands.
   • Faster response to customer orders can enhance competitiveness in the market.
7. Sustainability:
   • Integrated operations can implement more sustainable practices, such as using eco-friendly materials and optimizing energy consumption.
   • Waste reduction efforts can be more effectively coordinated and implemented.
8. Strategic Advantage:
   • Having control over the entire production process can provide a strategic advantage in the market.
   • Companies can differentiate themselves by ensuring consistent quality and reliability in their products.
9. Risk Mitigation:
   • Integration can mitigate risks associated with supply chain disruptions, such as delays or shortages of raw materials.
   • Diversification of raw material sources can also be managed more effectively.
10. Innovation:
    • Closer collaboration between the two factories can foster innovation in product development and process improvement.
    • New ideas and improvements can be implemented more quickly and effectively.