Classification of industrial products and services

1. CLASSIFICATION OF
INDUSTRIAL PRODUCTS AND
SERVICES
SUBMITTED BY – RISHAV SARKAR
SUBMITTED TO –SUNIL DHADIWAL

2. WHAT ARE INDUSTRIAL PRODUCTS AND
SERVICES
• PRODUCTS OR SERVICES PURCHASED FOR USE IN THE PRODUCTION OF OTHER
GOODS OR SERVICES, IN THE OPERATION OF A BUSINESS, OR FOR RESALE TO
OTHER CONSUMERS.
• THESE PRODUCTS AND SERVICES ARE FROM BUSINESS TO BUSINESS AND NOT
FROM BUSINESS TO CONSUMERS.
• INDUSTRIAL PRODUCTS HAVE A COMPARATIVELY SMALLER DISTRIBUTION
CHANNEL THAN CONSUMER PRODUCTS

3. CLASSIFICATION
• INDUSTRIAL PRODUCTS AND SERVICES ARE BROADLY
CLASSIFIED INTO
- MATERIALS AND PARTS (GOODS ENTER THE PRODUCT DIRECTLY)
- CAPITAL ITEMS (GOODS ARE USED IN THE PRODUCTION PROCESSES)
- SERVICES AND SUPPLIES (GOODS AND SERVICES SUPPORT THE OPERATIONS)

4. MATERIAL AND PARTS
 RAW MATERIALS – BASIC PRODUCTS LIKE ORES, CRUDE OIL, FRUITS AND
VEGETABLES ETC
 MANUFACTURED MATERIALS – FINISHED PRODUCTS LIKE STEEL, CEMENT, FUELS
AND ACIDS ETC.
 COMPONENT PARTS – SEMI FINISHED PARTS LIKE BEARINGS, SMALL MOTORS AND
SCREWS ETC
 SUBASSEMBLIES – SEMI FINISHED PRODUCTS LIKE GEAR BOX IN MOTORCYCLES
 SUPPLIES AND SERVICES
 SUPPLIES – OPERATING AND MAINTENANCE SUPPLIES LIKE LUBRICANTS,
STATIONARIES, PACKAGING MATERIALS, PAINTS AND ELECTRICAL ITEMS
 SERVICES – SERVICES PROVIDED LIKE BUILDING MAINTENANCE SERVICE, AUDITING
SERVICE, MARKETING RESEARCH SERVICE ETC

5. CAPITAL ITEMS
• LIGHT EQUIPMENT OR ACCESSORIES – LIGHT EQUIPMENT
AND MACHINERIES LIKE COMPUTER TERMINALS, HAND
TOOLS, TYPEWRITERS ETC.
• INSTALLATIONS OR HEAVY EQUIPMENTS – MAJOR AND LONG
TERM INVESTMENT EQUIPMENTS LIKE GENERATORS, SPMs,
GPMs , FURNACES ETC.
• PLANT AND BUILDINGS – PROPERTY OF A COMPANY LIKE
WAREHOUSES, OFFICES, FACTORIES ETC.

6. EXAMPLE
• FOR AN AUTOMOBILE COMPANY THE INDUSTRIAL PRODUCTS AND
SERVICES WILL BE
MATERIALS AND PARTS – STEEL, ALUMINIUM, IMPORTED
AUTOMIBLE PARTS, BEARINGS, SCREWS ETC.
CAPITAL ITEMS – LAND, MACHINERY, WAREHOUSE ETC.
SERVICES AND SUPPLIES – LUBRICANTS, ELECTRICAL ITEMS,
SUBASSEMBLIES REPLACEMENT SERVICE, BUILDING MAINTENANCE
SERVICE ETC.