Day 4: Hunting for cheaper raw materials.

Cake Palace has grown bigger and busier than it was last year. Cake Palace’s services and revenue has also doubled. But, the biggest challenge of profit in Cake Palace is the cost of raw materials. Our raw materials are so expensive because we buy them from retail shops. Further more, retail raw materials are not always sufficient for production. Thus, we usually have hours of unproductive labor (just because workers  are waiting for a necessary ingredient).

To solve that problem, once and for all, we are planning to have weekly purchases of 70% of baking raw materials. Fortunately, we have found the first bulk supplier. The supplier is called sunseed. They supply a lot of boxes of margarine and cooking oil at affordable prices.

The more we force bulk storage, the more we will easily compile monthly reports. In addition, purchasing raw materials in bulks is one way of storing money.

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