1. GROUP 5
PRESENTATION
“SELECT/PINPOINT POTENTIAL SUPPLER OF RAW
MATERIALS AND OTHER INPUTS NECESSARY FOR
THE PRODUCTION OF PRODUCT 0R SERVICE.”
Members (Boys)
Angeles, King
Caguiat Aaron Luis
Dela Cruz, Jonathan
Durano, Justin
Evangelio, David Viankley
Grande, Mardynielle

2. WHAT IS RAW MATERIAL?
Raw materials are materials or substances also known as a feedstock used in the primary production or
manufacturing of goods, finished products, energy, or intermediate materials which are feedstock for future
finished products.
Raw materials are also an important part of a firm’s inventory management. They are component parts of
the stock of inventories carried by a manufacturing firm at a given time. Every organization has inventories
of some type and the economics and techniques of inventory management are critical for efficient operation,
profitability and survival; especially in a highly competitive environment.
Abalon, Princess Tendilla
Latorre, Roseann
Liporada, Danielle
Veridiano, Juliana Mae
Members (Girls)

3. EXAMPLES OF RAW
MATERIALS
Steel, oil, corn, grain, gasoline, lumber, forest resources, plastic,
natural gas, coal, and minerals. Raw materials can be direct raw
materials, which are directly used in the manufacturing process,
such as wood for a chair.

4. Plant/tree-based– materials like
vegetables, fruits, flowers,
wood, resin, latex are obtained
from plants and trees.
Mining-based– materials like
minerals, metals, crude oil,
coal, etc. are obtained by
mining the earth.
Animal-based– materials like
leather, meat, bones, milk,
wool, silk are all obtained
from animals.
Types of raw materials

5. DIRECT AND INDIRECT
RAW MATERIALS
INDIRECT
DIRECT
Direct material costs are one of the costs
associated with producing a product. For
example, the direct materials for a baker include
flour, eggs, yeast, sugar, oil, and water. The direct
materials concept is used in cost accounting,
where this cost is separately classified in several
types of financial analysis.
Indirect materials are materials that are used
in the production process but that are not
directly traceable to the product. For
example, glue, oil, tape, cleaning supplies,
etc. are classified as indirect materials.

6. RAW MATER
Manufacturers convert raw materials and natural resources into
useful goods for many different consumers. In order to do this
process in an efficient manner, manufacturers typically rely on a
raw materials supplier. This supplier gathers natural resources or
other raw materials and ships them to manufacturers and other
producers.
A raw materials supplier must usually have access to natural
resources in order to collect and disseminate raw materials.
Raw materials might be stored by a supplier and then sold to
several vendors. may be necessary. Some refinement of natural
resources or other raw materials
Some refinement of natural resources or other raw materials may
be necessary. Raw materials suppliers must have these refinement
abilities if they are going to sell their goods directly to
manufacturers. Other times, the supplier may send the materials to
a middleman operation, which does the refining and then sells the
goods directly to manufacturers.
The services and products offered by a raw materials supplier may
need to change over time. The free market is rarely stable, creating
this constructive capitalism. Suppliers of raw materials need to
adjust their offerings in order to ensure sustainability. Listening the
needs of manufacturers can help the supplier achieve this goal.
IALS SUPPLIERS

7. 01 Quality and reliability
02 Speed and flexibility
03
Value for money
04
Strong service and clear
communication
What you should look for in a supplier
There are a number of key characteristics that you should look
for when identifying and short listing possible suppliers.
05 Financial security

8. 01 Quality and reliability
02 Speed and flexibility
03
Value for money
04
Strong service and clear
communication
What you should look for in a supplier
There are a number of key characteristics that you should look
for when identifying and short listing possible suppliers.
05 Financial security

9. Quality and reliability
- The quality of your supplies needs to be consistent - your customers associate poor quality with you, not your suppliers. Equally, if your
supplier lets you down with a late delivery or faulty supplies, you may let your customer down.
Speed and flexibility
- Flexible suppliers help you respond quickly to changing customer demands and sudden emergencies.
Value for money
-The lowest price is not always the best value for money. If you want reliability and quality from your suppliers, you'll have to decide how much
you're willing to pay for your supplies and the balance you want to strike between cost, reliability, quality and service.
Strong service and clear communication
- You need your suppliers to deliver on time, or to be honest and give you plenty of warning if they can't. The best suppliers will want to talk with
you regularly to find out what needs you have now and how they can serve you better in the future.
Financial security
- It's always worth making sure your supplier has sufficiently strong cashflow to deliver what you want, when you need it. A credit check will help
reassure you that they won't go out of business when you need them most.

10. CHOOSING A SUPPLIER OF RAW MATERIALS
• Once you have a manageable shortlist, you can approach the
potential suppliers and ask for a written quotation and, if
appropriate, a sample. It's best to provide them with a clear
brief summarizing what you require, how frequently you'll
require it and what level of business you hope to place.
CHOOSING A SUPPLIER OF
RAW MATERIALS

11. • Once you have a manageable shortlist, you can approach the
potential suppliers and ask for a written quotation and, if
appropriate, a sample. It's best to provide them with a clear
brief summarizing what you require, how frequently you'll
require it and what level of business you hope to place.
• It's worth asking potential suppliers to give you a firm price
in writing for, say, three months. You can also ask about
discounts for long-term or high-volume contracts.
CHOOSING A SUPPLIER OF
RAW MATERIALS
GET A QUOTATION

12. • When you've got the quotation, compare the potential suppliers
in terms of what matters most to you. For example, the quality
of their product or service may be most important, while their
location may not matter.
GET A QUOTATION
• It's worth asking potential suppliers to give you a firm price
in writing for, say, three months. You can also ask about
discounts for long-term or high-volume contracts.
Compare potential suppliers

13. • Price is important, but it shouldn't be the only reason you
choose a supplier. Lower prices may reflect poorer quality
goods and services which, in the long run, may not be the most
cost effective option. Be confident that your supplier can make
a sufficient margin at the price quoted for the business to be
commercially viable.
Compare potential suppliers

14. • Wherever possible it is always a good idea to meet a
potential supplier face to face and see how their business
operates. Understanding how your supplier works will give
you a better sense of how it can benefit your business.
• Once you've settled on the suppliers you'd like to work
with, you can move on to negotiating terms and conditions
and drawing up a contract.
Compare potential suppliers
Negotiate terms and conditions

15. Inputs for the production of product or service
are any resources used to create goods and
services.
Economists divide the factors of production into four categories:
land, labor, capital, and entrepreneurship. The first factor of
production is land, but this includes any natural resource used
to produce goods and services. This includes not just land, but
anything that comes from the land.

16. 01
LAND-
Land includes any natural resource used to
produce goods and services; anything that
comes from the land. Some common land or
natural resources are water, oil, copper, natural
gas, coal, and forests. Land resources are the
raw materials in the production process. These
resources can be renewable, such as forests, or
nonrenewable such as oil or natural gas.
LABOR-
Labor is the effort that people contribute to the
production of goods and services. If you have
ever been paid for a job, you have contributed
labor resources to the production of goods or
services.
02

17. 03
CAPITAL
Capital differs based on the worker and the type
of work being done. Think of capital as the
machinery, tools and buildings humans use to
produce goods and services.
ENTREPRENEURSHIP
An entrepreneur is a person who combines the
other factors of production - land, labor, and
capital - to earn a profit. The most successful
entrepreneurs are innovators who find new
ways to produce goods and services or who
develop new goods and services to bring to
market.
04

18. QU TI
IZ ME
!!!!!
1. It is also known as a feedstock, unprocessed material,
or primary commodity, is a basic material that is used to
produce goods, finished goods, energy, or intermediate
materials that are feedstock for future finished products.
A. Indirect Material C. Raw Material
B. Direct Material D. Inputs of
Production

19. QU TI
IZ ME
!!!!!
2. These are goods that, while part of the overall
manufacturing process, are not integrated into the final
product. They may be essential to a production line, but
they are not part of the actual product created on that
line.
A. Indirect Materials C. Feedstock
B. Direct Materials D. Supplier

20. QU TI
IZ ME
!!!!!
3. If you have ever been paid for a job, you have
contributed _____ resources to the production of goods
or services.
A. Capital
B. Land
C. Labor
D. Machinery

21. QU TI
IZ ME
!!!!!
4. Tom gathers natural resources or other raw materials
needed for production and ships them to manufacturers
and other producers who order them. Tom is a raw
material________.
A. Manufacturer
B. Laborer
C. Manager
D. Supplier

22. QU TI
IZ ME
!!!!!
5. This refers to the raw materials that are directly used
in the production process of goods and services of a
company and are an essential component of the
finished goods manufactured.
A. Indirect Material
B. Raw Material
C. Energy
D. Direct Material

23. A
N
S
W
E
R
1. It is also known as a feedstock, unprocessed material, or primary
commodity, is a basic material that is used to produce goods, finished
goods, energy, or intermediate materials that are feedstock for future
finished products.
A. Indirect Material C. Raw Material
B. Direct Material D. Inputs of Production

24. A
N
S
W
E
R
1. It is also known as a feedstock, unprocessed material, or primary
commodity, is a basic material that is used to produce goods, finished
goods, energy, or intermediate materials that are feedstock for future
finished products.
A. Indirect Material C. Raw Material
B. Direct Material D. Inputs of Production
1.C

25. 1.C 2. These are goods that, while part of the overall manufacturing process,
are not integrated into the final product. They may be essential to a
production line, but they are not part of the actual product created on that
line.
A. Indirect Materials C. Feedstock
B. Direct Materials D. Supplier
2.A

26. 1.C 3. If you have ever been paid for a job, you have contributed _____
resources to the production of goods or services.
A. Capital C. Labor
B. Land D. Machinery
2.A
3.C

27. 1.C 4. Tom gathers natural resources or other raw materials needed for
production and ships them to manufacturers and other producers who
order them. Tom is a raw material________.
A. Manufacturer C. Manager
B. Laborer D. Supplier
2.A
3.C
4.D

28. 1.C 5. This refers to the raw materials that are directly used in the production
process of goods and services of a company and are an essential
component of the finished goods manufactured.
A. Indirect Material C. Energy
B. Raw Material D. Direct Material
2.A
3.C
4.D
5.D