Raw Material

Key Highlights

• Raw material is a term used to describe the basic, unprocessed materials that are used in the production of a good or service.

• Types of Raw Material include Mined, Plant-based and Animal-based.

• Direct raw materials are those used to create a distinct end product.

• Indirect raw materials can refer to any additional material needed to complete the creation or production of said item.

What is a 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

• Mined raw materials: These are materials obtained from minerals or rocks found in the earth’s crust. Examples include iron ore, limestone, clay, sand, gravel, and shale. Mining these materials requires excavation and the use of specialized equipment for extraction. The mined materials can then be processed in various ways to create a range of products.

• Plant-based: These are natural organic products derived from plants. Examples include wood, cotton, paper pulp, sugarcane, and corn starch. Plants need to be grown and harvested before they can be used as raw materials for production. Processing typically includes drying and sorting operations before the final product is ready to use.

• Animal-based: These are proteins derived from animal sources such as meat and eggs. Animal-based raw materials are mainly used in the food industry but can also be utilized for cosmetics, pharmaceuticals, or other uses where protein is required. Obtaining these materials involves slaughtering animals (or harvesting eggs) followed by processing that consists of washing, cutting, and packaging the material into a usable form for production processes.

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.