Based on the business environment and job insecurity, it would be advisable to invest that extra cash into the business of supplying raw materials to manufacturing firms across the country.
And one of the ways to channel that extra cash into useful venture is supplying of raw materials to manufacturing firms.
No matter how rich a person might be, there is need for one to know the act of supply very well in order to avoid unnecessary mistake while doing the business.
While speaking with LEADERSHIP, Mr Kenneth Ebhohon cautioned investors against jumping into the act of supplying raw materials to industries with adequate knowledge. Ebhohon, who says he has been in the business for about eight years, states that, he ventured into it after he lost his job.
To become a supplier for big companies, he says: “you should have verified their need for the particular product. A person should have good farmers who are into production of such raw materials.
“A person must have understandable driver that would assist in driving to and from the farms to the company that requires the materials. One can even go into personal farming for such products if he/she has ready buyers like supplying plantains, corn, millets and others.”
On his own, Alfa Yawande says, to be raw material supplier, it is important that you are familiar with companies.
To him, “You must get sound information to know if they how often they will pay for materials supplied. This would help to reduce your stress because some of the companies due to one reason or another may not pay on time.
“One also need sound information on how to preserve such materials during raining or dry seasons. Having the finance before going into it is necessary also. Power or skill of negotiation is needed to be able to negotiate with the farmers, the driver of the vehicle and the companies before embarking on the journey of supplying is required.”
However, the two suppliers, while speaking further, advised against depending solely on imported raw materials without physical contact with the producers of such materials outside the shore of Nigeria.
“If such supplier is dealing with purely imported raw materials then he or she should have nice preservation condition to save them from expiration and spoilage while on the seas. Since some may take two or more weeks to land and may take days before they are evacuated from the ship, a good preservation system must be on ground.
“And the person must have source and knowledge of current rate of foreign exchange to avoid fallen victim to falling and rising of foreign exchange,” Yewande pointed out.
One sure way supplier of raw materials to industries in view of the current economic hardships is to stop the importation of raw materials and invest in the local market by sourcing their raw materials locally or by being constant watcher of foreign exchange rate.
