Industrial Good Classification

1. Material and Parts

2. Capital Items

3. Supplier & Business

Material and Parts:- are that goods that enter the manufacturers’
product completely

i.) Raw materials can be either

a.)farm products :- Farm products are sold through intermediaries
(e.g., wheat , cotton, fruits)
or
b.) natural products (e.g., lumber, Petroleum, Iron ore).;
natural products are generally sold through long-term supply contracts, for which price and
delivery reliability are key purchase factors.

ii.)Manufactured materials and parts fall into two categories:

a.)component materials : component materials are usually fabricated further
(e.g.iron, yarn cement, wire)
Pig IronSteel
Yern-Cloth
for which price and Supplier reliability are key purchase factors.
and
b.)component parts :-enter to finished product with no further change in forms.
(e.g.small motors, tires, casting) ;
Small motors Vacuums Cleaner
Tires Automobile

again, price and Service are important considerations.

Capital items are long-lasting goods that facilitate developing or managing the finished product. They
include two groups:
a.) installations :(such as factories)They are usually brought directly from producer with typical
sales proceeded by a long negotiation period. Producer have to be willing to design to
specification and to supply post sale service .
and
b.) equipment :(such as trucks and computers),
both sold through personal selling. Supplies and business services are short-lasting
goods and services that facilitate developing or managing the finished product.