The design of actions for good strategic planning starts from the complete knowledge of the production process, specifically, the way in which you categorize the types of materials to integrate them into your ERP.
Types of materials: origin and place in the supply chain
In any industry there are various types of materials that are characterized by belonging to a certain stage of the production process and, for this reason, they must be well organized so as not to affect the supply chain.
When it comes to generating efficient resource management, it is necessary to know the most important types of materials in order to have a clear idea of their origin and behavior. The best planning for the use of resources in your ERP must start from an appropriate language in order to optimize communication between the different sections that make up the production model. MailChimp NetSuite integration helps successful synchronization of all of performance of your ERP.
Materials within a production process are classified depending on their origin and the process in which they are located in the production chain. Added to this, the cost of each material increases as the transformation processes are iterated towards a more refined product. The most important types of materials that make up the warehouse of a company dedicated to transformation and / or manufacturing are the following:
These are the base materials used to manufacture a new product. Raw materials are obtained directly from nature and enter the strategic planning scheme as an initial purchase order. Raw materials must figure as the main cost in the production chain.
Work in progress
They are all the materials that are in some machining and / or manufacturing process. These materials are usually represented in monetary amounts and not in stocks because they are in the process of transformation.
Components and / or semi-finished products
They are the materials that are finished, but they are not final products that are sold to a client. These materials are stored and have their own costs and policies within the strategic planning of the production model. They are considered as raw materials for other semi-finished or finished end products.
They are materials that are used to finish the production process. Usually, these materials do not undergo transformation, but are simply part of the packaging, packaging and / or shipment preparation. Some examples of packaging materials are pallets, strapping, labels, bags,
Ready-to-market products are considered this way. It is the final stage of the strategic planning of the production chain since it no longer requires any additional processing or conditioning.
They are waste materials and / or reusable waste that arise during and after the manufacture of a product. Depending on the industry, there are processes that not only deliver a finished product, but also deliver useful by-products for trade or as raw materials for other industries.
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