Meaning of Material Resources

What are Material Resources:

Material resources are the tangible or concrete goods that a company or organization has in order to meet and achieve its objectives such as: facilities, raw materials, equipment, tools, among others.

Classification of material resources

Transformation resources

Transformation resources are those that are manipulated to make other resources. The transformation resources intervene directly such as: machinery, tools, equipment and indirectly such as: land, buildings, furniture, vehicles.

Utilization resources

Utilization resources are those that are processed by transformation resources such as raw material and that serve as support for company activities such as fuel, cleaning supplies, stationery, etc.

Management of material resources

The management of material resources consists of obtaining the raw material, goods and services in the quantity and quality required at a lower price in order to fulfill the functions of the company and achieve the proposed objective.

The company administration plans, schedules, controls, stores, distributes, controls materials and equipment.

Material resources and human resources

Natural resources are the different physical, concrete and solid means that allow the provision of different products and services such as raw materials, equipment, tools, facilities. Human resources is the set of employees and collaborators who work in a company with the purpose of coordinating, planning and organizing the team of workers that make up a company.

Material resources and technical resources

Material resources are the different concrete means that a company contains to achieve its purpose. Technical resources are technology-based means to coordinate the other requirements like; the production system, the sales system, the finance system, among others.

Material resources and financial resources

Material resources are the physical goods that belong to the company, either machinery, equipment, tools, among others. The financial resources are own elements (cash, economic contributions of the partners, utility) and others (bank credits, loans from creditors and suppliers and issuance of securities) of a monetary nature that the company requires for the progress of the company.

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