Different types of industrial/business products

Question-3: What are the different types of industrial/business products?

Answer: Industrial product means machinery, manufacturing plants, materials and other goods or component parts for use or consumption by other industries of firms.   Industrial products are classified on the basis of their cost and where they enter the production process. There are 3 major classes/types of industrial products. Overall there are many sub parts of the major classes and each of them has separate role in the classification of industrial products. Let us delve deeper into the classification.

1.   Material & Parts: These are all the products that are utilized in the process of production as inputs. Good examples are raw materials and purchased inputs. In this, there are two types of materials commonly used for industrial products, they are following:

i)                    Raw materials: Raw materials are those products, which process in the business operation and become the part of other goods. Such as petroleum, coal, irons, fish, vegetables, wheat etc.

ii)                  Manufacturing materials & Parts: These are the parts of those business goods, which are complete in all respect and might have gone all the manufacturing process but ultimate consumer can’t use them until when the combine with another finish product. They become the part of finish goods. Such as Yarn, semiconductor, zipper and tires etc. 

2.   Capital Items: These are the products that are never consumed in the process of production but they are repeatedly used in the production process. In this, there are two types of Capital Items commonly used for industrial products, they are following:

i)                    Installation: An organization’s major expensive, long-lived equipment’s (fixed asset) is called installation. Such as Large generator, printing press, large machinery etc.

ii)                  Accessory Equipment: The accessory equipment’s are those industrial products, which are bought by the organization operation and these very helpful. Such as Caterpillar, trucks, cranes, Computer hardware, printers, copiers etc.

3.   Supplies & Services: Both support the operations of the purchasing organization. They are not considering as part of the finished goods. They are further segregated into two parts:

i)                    Supplies: these items are generally standardized and marketed to a wide cross section of industrial users, such as paints, oils, pencils and stationary etc.

iii)                Services: Company needs a wide range of services like building maintenance services, auditing services, legal services, courier services and many more.