The discussion of the tension in the leather industry is not a new discussion because this old industry in Iran has confronted many failures during the past few years in and Low productivity in leather production units.
Presenting the supporting strategies and challenges
In the new era and in the third millennium, the real tension is an inseparable reality of the internal nature of organizations.
Tensions actually occur (suddenly) as a result of natural and unnatural events and impose detriment and hardship on a human society or community.
Tension management for confronting surprising and unexpected situations needs experience, readiness, skill, promptitude, intelligence and creativity more than anything else.
Tension management is a process of planning and performance which is looking for and finds a tool to reduce the tension effects by observing tensions systematically and analyzing them.
• Lack of the specific and efficient strategies and planning in leather industry
• Low productivity in leather production units
• Insufficient consideration for renewing leather production line
• Negative and frail competition between leather production factories
• Disharmony with world updated technology Because of tension in the leather industry
• Lack of skilled, expert and committed human resources in leather production units
• Traditional management in leather production units
• Lack of research and development and innovation in leather production units
• Low productivity in leather production units
• Traditional marketing
• Not considering branding
• Lack of raw skin with light and heavy quality
• Insufficient control over the way of animal’s slaughter for skin with good quality
• Lack of a specific spectating organization on how to maintain the slaughtered skin
• Lack of a specific spectating organization on how to carry skin to leather factory
• Issuing license to establish a factory without plan or regulation
• Not being independent in production of raw material with a good quality
By evaluating the problems of the industry, they finally can be divided in three groups:
• Insufficient light and heavy raw skin with good quality
• Insufficient control over the way of the animal’s slaughter for skin with good quality
• Lack of a specific spectating organization on how to maintain the slaughtered skin
• Lack of a specific spectating organization on how to carry skin to leather factory
• Lack of skilled, expert and committed human resources in leather production units
• Traditional management in leather production units
• Lack of research and development and innovation in leather production units
• Low productivity in leather production units
• Insufficient consideration for renewing leather production line
• Lack of the specific and efficient strategies and planning in leather industry
• Issuing license to establish a factory without plan or regulation
• Negative and frail competition between leather production factories
• Not being independent in production of raw material with a good quality
• Traditional marketing
• Not considering branding
• Inability and problems in securing and receiving export currency
In the following we will explain and provide a strategy to some of the issues and problems mentioned
above.
The need to plan and efficient strategy in every work is evident for everyone, and the leather industry is not an exception in this matter.
Because there are several incomplete and inefficient strategy and planning programs and high costs to develop them, there is no accurate planning for using the experiences of other well-known countries in the industry.
All the executives in the leather industry, unions, associations, and even strategy formulators are thinking of their own name, workshop, factory, or organization and they do not see a good future for the industry.
Since the manifestation of the leather industry in Iran to nowadays, there has not been a comprehensive or operational program to improve and give quality to the country’s animal and skin industries.
Skin as the basic tanning material should be considered all the time and the skin is the life giving factor for Charmshahrs.
Not paying attention to skin leads to environmental irrecoverable damages and finally low quality leather.
Making small production units without complete production lines does not have high added value and will not be able to compete internationally or even for the the long term domestically.
The lack of comprehensive and operational guiding plan and presenting principled agreement and license for establishing a production unit and not paying attention to priorities of investment in different sectors of this chain have made a problem which we are confronting with these days.
Disharmony in different sectors such as custom and Bureau of Industry, Mining and Trade and other organizations (which shows the lack of plan in leather industry) cause the leather production units not holding principled agreement and license to have activities in domestic market or even in export easily.
In presenting principled agreement, a specific plan or program should be considered as the basis.
A person or a group, who refers to the related entities for investment and receiving principled agreement, should be familiarized with the rules by providing needed training and after gaining required competence the principled agreement is issued, even the old principled agreements should be checked periodically.
It is worth noting that there is also a certain degree of freedom in the provision of principled agreement, since the provision of principled agreement restrictively and strictly leads to monopoly.
Each industry can flourish when it is able to do correct financial management and achieve development and innovation through sound marketing management.
Now, inadequate supervision of related organizations causes creation of many workhouses without license and eventually has led to producing leather with low quality.
Because of the high cost of production and lack of expert management and familiar to up dated knowledge, unfortunately many of production house works, in order to reduce their ended cost and control the market, have attempted to produce low-quality products and have tried to reduce their production costs by using a variety of inappropriate methods, eventually offering their customers more than one year to sell because of their lack of knowledge of modern financial management.
Supporting autarky in producing raw material with high quality
Dependence of major part of raw material in tanning industry to export has led to many problems.
In the meantime, raw materials produced domestically, do not have the capability to compete with their foreign counterparts or are not manufactured completely inside the country as in the case of finished materials.
One the biggest problems of leather industry are, not being familiar with modern management science.
For example most production unit owners have several organizational positions and work as marketing manager, production manager, finance manager, etc. in their units without division of labor.
While they do not fully aware of the most basic rules of production, economics, management and technology, this makes the concept of profit, loss, innovation, productivity, technology, and so forth meaningless to the production managers and it makes problems that they face in Charmshahr
nowadays.
Studies in leading countries in the leather industry show that they use a high level of technology which results in higher productivity.
Machinery with more than 5 years of life in the leather industry not only are not able to compete globally, but also they will soon lose the domestic market, which also faces an irregular import of leather.
When the factories of the leather industry succeed in production after having overcome many problems, they face another problem that although it may not be larger than the previous problems, is not lesser and less important than the problems, that problems are associated with the distribution of sales and marketing of products.
Since leather is produced from natural leather and the production unit can only affect its tanning, and the rest of its features are inspired by nature, this causes leather buyers to pay tanners in long-term period, not paying or returning the bought product after long time.
Tension in leather industry and presenting supporting strategies and challenges.
Since the produced leather should be transformed to leather products such as leather bag, shoe, belt furniture, or cloth, the end user is related only to leather producer brand, branding in leather industry is always inconspicuous because leather customers do not make themselves committed to protect the brand of leather producer.
This is meaningless in leather industry.
If the end consumer, the general public, requests the leather goods sellers for a leather product identification which shows the type of leather and other equipment with which the finished product is manufactured, and force the competent organizations of the leather product to do this as well, branding in manufacturing units will have a special meaning and everyone will try to produce high quality leather and adhere to the newest global standards.
Leather industry needs a comprehensive new and applicable strategic plan that must be formulated from the time of animal breeding, slaughter, and skin care, skin carrying, tanning and production processes by using the world’s modern science and utilizing the experiences of leading countries in the industry. The industry is globalizing.
By these interpretations it can be suggested the most important solutions and approaches to solve the problems of the leather industry are as follows:
1. Formulating a comprehensive and operational guideline program under supervision of experienced expert in leather industry.
2. Using of modern educational centers in leather industry to educate experts
3. Supervising principled agreement for productive units.
4. More effective use of scientific systems in marketing and sale and all the suggestions
mentioned in above video.
