EP.3 Raw material and service management
Welcome back to Netizen by NETIZEN Arabica EP.3. Today we would like to present About understanding the concepts of raw material and service management
Every organization needs to focus on assets. That is related to sales, purchasing, and business processes By classifying these assets into 2 types which are
- Intangible things
Of course, materials are classified as tangible. By starting from raw materials or components that have been processed to finished products in order to deliver to customers. In which these raw materials will be circulated in the supply chain.
As for other raw materials, such as office supplies or supplies, there is no role in the supply chain. Including fixed assets such as notebooks or production machinery Have no role in the supply chain as well
As for the intangible things Consists of fixed assets, including software, including services such as inspections or consulting
There are 3 tangible things which have different management, which are
- Supply Chain Materials consist of an inventory management process, in which raw materials are traded continuously for use in production. And the valuation process based on quantity in stock. The inventory managementis linked to the raw material ledger of the financial department
- Office supply consumables, for example pen and paper used in operations It is not related to inventory management, but from a financial standpoint it is considered an expense.
- Fixed assets There is a process for managing fixed assets in the warehouse. For example, a forklift that is the same as office equipment. Is for operation only But different, which have higher values and which have always changed values, which require depreciation methods to reflect the correct asset values in the balance sheet.
How are you … For our EP.3, we hope you all More understanding of the concept of raw material and service management And don’t forget to meet in the article The supply chain management in Nate Saint Martin Netizen Arabica, EP.4 it …
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