Industrial goods are goods that are consumed by industrialists (among consumers or business customers) for purposes other than direct consumption, namely:
a. To be changed, then manufactured into other goods resold (by the manufacturer).
b. For resale (by traders) without physical transformation (production process). Industrial goods can be classified based on its role in the production process and their relative costs. There are three groups of industrial goods that can be distinguished, namely materials and parts, capital items, and supplies and services.
1 Materials and Parts
Belonging to this group are goods wholly or fully enter into the finished product. This group can still be broken down into two classes, namely raw materials and finished materials and spare parts.
a. The raw material can be divided into two types, namely agricultural products (such as rice, fruits, vegetables, cotton, including the animal products such as milk and eggs) and the product-products of natural resources (such as petroleum, iron ore, fish , wood, rattan, etc.).
b. Finished materials and component parts consisting of materials (for example, yarn, cement, wires) and component parts (such as small motors, tires). Usually the component materials still need to be processed again, for example, the thread woven into the fabric. Standardized nature of the component materials resulted in price and reliability of the supplier become the most important purchasing factor. While the component parts all the way into the finished product without changing its form and nature, for example, fully fitted tires on a car or motorcycle, and a semiconductor chip mounted on a computer-computer.
2 Capital Items
Capital items are durable goods (long-lasting) that give the ease of developing and / or managing the finished product. Capital items are divided into two groups, namely the installation and additional equipment (accessory equipment).
a. Installation includes the building (such as factories and offices) and equipment (such as generators, computers, stair runs, drilling machines, diesel engines, furnaces, etc.).
b. Additional equipment consists of equipment and tooling factory portable air properties (such as hand tools, tool
carrier) and office equipment (such as typewriters, office desk). Both types of goods are not part of the finished product, but it helps the process of production.
3 Supplies and Services
Included in this group are the goods are perishable (short-lasting) and services that facilitate in developing and / or managing the overall finished product.
a. Supplies consist of operating equipment (such as lubricating oil, coal, typewriter ribbons, pencils) and maintenance and repair materials (such as paint, stone, broom, brush).
b. Business service consists of maintenance and repair services (such as a typewriter repair, glass cleaner / room) and business consulting services (such as management consultancy, law, taxation, advertising).