With cost spiralling upwards for most of the components Options for bakery manufacturers are listed below for reducing cost of production and increase the profitability of bakery unit
Raw material availability
To start or move to area where raw materials like Flour , Sugar and Fat are available at low rates or areas where these material are processed in abundance.
Labour Cost
Putting or running plants away from metros or suburbans areas can reduce the overheads cost as living costs in these areas are very low . Governments have setup industrial zones in such areas to help local populations with jobs and help in industrialization of that areas sops like tax and duty exemptions are also given to the investors.
Fuel Availability
Check out for areas where one can source fuel at lower rates for fuel such as Lpg , Ldo , Rfo or CNG .With proper source of electricity .
Logistics Infrastructure
Area to be well connected with rail and road network as to get raw material easily and transship finished good in shorter time .
Market proximity
Not to ignore the market proximity near by as it would reduce the logistic cost of transportation and distribution channels .
Competition
Areas where there are fewer competitors or no competitors can enhance the sales and in turn increase the profitability
