In business, raw materials are one of the key factors determining the smooth running of a business. If raw materials are difficult to find or are consistently in short supply, running a business will undoubtedly be difficult.
So, what are raw materials, and how can they be managed to avoid supply shortages? Here’s a complete explanation.
What are raw materials?
So, these raw materials are raw materials that are not yet ready for use or consumption. Processing is required to turn raw materials into finished goods.
Raw material selection must be careful, as the quality of the materials will significantly impact the quality of the resulting product. Typically, quality standards are established and strictly controlled.
Types of Raw Materials
1. Direct Raw Materials
As the name suggests, direct raw materials are materials that are directly used to make finished products, for example the use of wood to make chairs.
2. Indirect Raw Materials
The opposite of direct raw materials, indirect raw materials are materials that do not become part of the final product.
So, you could say these are complementary and supporting materials for the product. For example, to make a wooden chair, paint is needed as an indirect raw material.
What about Raw Materials in Food?
In food, the raw materials needed are in the form of stand-alone foods, such as meat, milk, fruit and vegetables.
However, there are also raw materials, which refer to the ingredients that go into a food item or recipe. For example, milk is a raw material in the production of cheese and yogurt.
Raw Material Supply Must Be Recorded
Whatever raw materials you use in your business, you must be able to manage them properly. Raw materials must be constantly monitored and recorded as they come in and go out.
That way, you can know the amount of raw material stock every day and avoid sudden shortages or running out, which could certainly stop production.
Recording raw materials will also facilitate sales, make repeat orders to suppliers, and minimize the risk of losing goods.
Use the Application for Raw Material Recording
Despite its importance, unfortunately, many business owners—perhaps including you—are lazy about recording and monitoring their raw materials. This is because record-keeping can actually add additional work.
However, now you no longer need to bother with manual recording because you can do it in the Labamu application with the Manage Raw Materials feature.
By using this feature, you can create a breakdown of each raw material needed for each product you have.
In fact, recording raw materials can be arranged according to category so that it can help you create an organized storage structure.
Benefits of the Manage Raw Materials Feature in Labamu
Here are some of the benefits you will experience if you use the Manage Raw Materials feature in Labamu.
1. Manage More Optimally
This feature allows you to organize and manage raw materials more efficiently and in a structured manner. As a result, you can minimize raw material waste and ensure optimal use in the production process.
2. Stock Becomes Clearer
Because you can manage raw materials more optimally, you can identify and handle shortages or excess stock quickly and effectively.
So, there will be no more stories of raw materials suddenly running out due to incorrect recording or even being wasted due to excessive stock storage due to incorrect purchases.
3. To Save Recipes
In addition to raw materials, this feature can also help you more easily detail and replicate each step in the production process. This can improve business consistency and quality.
How to Manage Raw Materials
Using the Manage Raw Materials feature in the Labamu application is also very easy, as follows.
- Go to the “Manage” menu, then select “Manage Raw Materials”
- Click “+ Raw Materials”
- Enter details of each raw material, such as photos, prices, and other important information.
- Set Raw Material Categories and Units
- Click “Save Raw Materials” and you’re done.
Don’t Just Record Raw Materials!
Raw materials can be categorized as inventory. Therefore, all types of goods purchased by a company, stored, processed, or prepared for sale are included in inventory.
Inventory can be divided into three categories, namely:
- Raw material inventory: the type of raw material that is the basic material for the production process to become processed or finished products.
- Semi-finished goods inventory: goods that have been produced, but have not yet become processed or finished products.
- Finished goods inventory: products that have completed the production process and are ready to be sold on the market.
All of this inventory also needs to be recorded and its incoming and outgoing processes monitored. To make things easier, you can also use the Labamu app, which has many features to help make your work easier.
One of them is the Products feature, which can help you manage the products or services you offer. This feature allows you to regularly monitor product stock to manage inventory efficiently.
That’s an explanation of raw materials, the recording of which can be managed through the Labamu application in the Manage Raw Materials feature, as well as many other features that are no less useful.
Come on, download Labamu now on Google Play or the App Store and join more than 70,000 MSMEs in Indonesia who have been helped by this app!
