What is raw material?
Raw material is a term used to describe the basic, unprocessed materials that are used in the production of a good or service. It is typically sourced from natural resources such as agriculture and forestry, but can also be manufactured from waste products and recycled materials. Raw materials can include anything from wood pulp to rubber, metal, plastic, and synthetic fibers. They are usually combined with other raw materials to create a finished product.
Types of Raw Material
Direct vs Indirect Raw Material
Direct raw materials are those used to create a distinct end product. For instance, if you are constructing a computer desk, you may use wood, screws, and hardware as your direct raw materials. On the other hand, indirect raw materials can refer to any additional material needed to complete the creation or production of said item. This would include things such as saw blades for cutting the wood, drill bits for creating holes in places, and paint or varnish for finishing touches - all of which are necessary but not necessarily part of the final result itself.