Material Resources (Characteristics, Classification, Importance)

  • Jul 26, 2021
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For the proper production process of any company, it is necessary to have a resource series. These are diverse and are classified into different types: technical, financial, human and material.

The first are related to the technology to carry out the productive activity. The following are associated with the money required to defray costs and expenses incurred in their activities, workers or workforce. And, finally, the assets required to meet your organizational objective.

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In this sense of ideas, the good administration of each of these resources will determine the success or not of the company. That is, a balanced proportion of each of them, avoiding both shortages and excesses, guarantees efficient management of the business.

So, with respect to the subject that this article deals with, the material resources are the physical and tangible goods or means of which companies use to develop their production process.

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material resources

This means that these resources are objects that can be touched, worked with, used to building other things, or using them for transformation, are tangible elements, some examples of they are:

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  • Property such as buildings, warehouses, workshops, factories, shops, offices, offices, silos, refrigerators.
  • Machines and equipments such as milling machines, mills, forklifts, scales, ovens, weights, refrigerators, mixers, mixers, freezers.
  • Instruments and tools such as screwdrivers, toner, cartridges, nails, hammers, tubes.
  • Furniture and office equipment such as shelves, computer equipment, multifunctional, chairs, telephones, desks, desktop computers or laptops, filing cabinets, electric whiteboards, video beam.
  • Transport such as vehicles, planes, trucks, boats, motorcycles, bicycles.
  • Raw Materials such as textiles, vegetables, plastics, metals, minerals, coal.
  • Energy such as gas, oil, diesel, gasoline, light.

In this article you will find:

Classification of Material Resources

The resources can be classified into: Resources for Renewable Materials, Resources for Non-Renewable Materials, Resources for transformation and Resources for Utilization

1.- Renewable Material Resources

They are of immense value for the company since they can potentially reduce its production costs; if they are used properly, their use can be unlimited, they do not run out, they can be disposed of almost permanently.

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Some resources of this type are hides, woods and the like.

2.- Non-Renewable Material Resources

They are elements with a limited life, they are exhaustible, they may cease to exist or be available over a period of time, they may disappear. Examples of this type of resource are coal, oil, and the like.

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3.- Resources for Transformation

They are the materials handled directly in the production process, although they can also be the elements that can intervene directly in these to transform them into others.

This group of material resources for transformation can be divided into:

  • Material resourcesfor transformation directly: those that are used to build other goods, for example the tools to build the wood in a door or an oven to prepare bread. It can be machinery, computer and computer equipment, raw material obtained from nature, tools.
  • Material resources for indirect transformation: are those that allow production, since without their presence it would be very affected, and even unfeasible in some situations. They can be real estate, land, means of transport and the like.

4.- Resources for Use

This type of material resources are those processed by the resources for transformation, these are those that allow the operation of the company and with which they meet their objectives of production.

The resources for use are processed by those of transformation during the production process, they are used for consumption or for sale and can be of two types:

  • Stocks: are the inventories of merchandise or finished products, stored in the company for sale.
  • Stationery and office supplies: this item includes all consumables such as inks, toner, cartridges, pens and the like.

Importance of Material Resources

The remarkable importance of the material resources of a company is indisputable. Without them there would be no production, the deal it would be stagnant and would cease to exist. That is, they are necessary and very important for manufacturing processes.

Are the instruments and necessary material to manufacture the products offered in the market and thereby achieve the objectives that have been formulated, in addition to fulfilling its mission and institutional vision.

The usefulness of material resources is also evident and manifest, either directly or indirectly, in each of the projects that the company plans or organizes.

With them it is possible to develop the infrastructure, organize the distribution of products or ensure the adequate storage of both raw materials and finished products.

In conjunction with each of these activities, the correct administration Material resources can favor or hinder the activity of any organization, resulting in profits or economic losses.

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