Enviro News Asia, Jakarta — The wood moulding industry needs to strengthen risk mitigation through effective raw material management, compliance with product specifications, and a thorough understanding of market requirements to sustain business operations and enhance competitiveness.
Forestry expert Didik A Gunawan said the industry’s highly specialised nature and wide range of products require businesses to align timber procurement decisions with the intended use of their products and buyers’ requirements.
“Risk mitigation in the moulding industry must begin with an understanding of market opportunities and the raw materials a company can reliably source and process. Wood species influence the products that can be manufactured and the markets that can be served,” Didik said in a statement in Jakarta on 15 September 2026.
According to Didik, risk mitigation comprises proactive strategies to identify, reduce, and manage potential threats, keeping their impact within levels a company can tolerate.
This approach should be embedded throughout business planning, raw material procurement, production, and marketing. It enables companies to anticipate potential problems before they compromise product quality, disrupt deliveries, or affect customer relationships.
Didik explained that moulding is a specialised industry in which product profiles are shaped using moulds or specific forming tools. Applications include building and housing components, trucking and transportation, flooring, and products supporting other industries, including tourism.
This diversity of applications requires a clear understanding of each product’s specifications. Beyond ensuring that they can shape the wood, manufacturers must assess whether the material is suitable for the end use intended by the buyer.
“Every product has an intended use. Material selection, shaping processes, and quality control must therefore be geared towards meeting that requirement consistently,” he said.
Didik noted that wood, as a natural resource, has characteristics that must be understood before it is used as an industrial raw material. Wood species are an important consideration in determining which products to manufacture and which markets to serve.
Raw material selection and procurement should therefore extend beyond price and availability. Companies also need to consider compatibility with order specifications, production capabilities, and continuity of supply.
“Cheaper raw materials are not necessarily the most cost-effective choice if they do not meet product requirements. Procurement decisions must take into account the entire process, through to the customer’s receipt of the finished product,” Didik said.
He recommended that manufacturers map the relationships between wood species, product characteristics, production capabilities, and market requirements. This exercise can help companies assess whether they can fulfil an order and identify risks at an early stage.
When substituting one wood species for another, companies should test its suitability and secure the buyer’s agreement. This is essential to ensure that material changes do not result in products that differ from the agreed specifications.
On marketing, he identified Japan, Korea, China, and the Middle East as markets that need to be understood in terms of buyer requirements and product end uses.
According to Didik, market knowledge must go beyond identifying export destinations. Companies need to understand each customer’s technical specifications, volume requirements, delivery schedules, and product acceptance procedures.
“Wood species, products, and markets must be considered as an interconnected whole. Companies need to ensure that the materials available can be processed into products that the market needs and accepts, and that these products can be supplied consistently,” he said.
Didik emphasised the importance of maintaining continuity of supply through carefully planned supplier relationships. Reliance on a single source of raw materials should be reviewed, while alternative supplies should be assessed for their ability to meet quality requirements and provide clear evidence of origin.
At the same time, market expansion should reflect a company’s operational readiness. Diversifying customers and products requires adequate raw material supplies, production facilities, and quality control.
To achieve this, Didik called for close coordination among procurement, production, quality control, and marketing teams. All departments need to work with shared, consistent information to ensure that business decisions are implemented coherently.
“Competitiveness in the moulding industry rests on the ability to maintain alignment between raw material suitability, product quality, and customer requirements. Risk mitigation must be part of everyday business decision-making,” he said.
By embedding risk mitigation across the value chain, from raw material selection to marketing, the moulding industry can maintain buyer confidence, reduce business disruptions, and sustainably increase the value derived from wood. (*)
