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16-07-2022
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Ready for shipment: the finished goods
Finished goods are goods that have been manufactured and are ready to ship, but have not been sold to the customer or end user just yet. Finished goods are floating in between, but we at Rompa Group make sure they are shipped quickly to reduce inventory. Thanks to our global footprint, quick layover methods and smart designs we are able to produce the finished goods on demand. This way we make sure there is not a long shelf time so consumers can enjoy these products in no time!
Inventory
An inventory can consist of three classes of stored products. There is a raw material inventory, which is used for production purposes. Then there are products in process, which still need to be finalized. Lastly, we have the finished goods, which we eventually sell to the reseller or consumer. Below we explain more about these three types of inventory products.
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Raw materials
Raw materials are needed for production. Actual manufacturing starts with the raw materials and develops the finished goods. Raw materials are the different plastics we acquire and use for production purposes. We obtain the raw materials from different suppliers, always searching for the best quality and price.
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Products in process
A product might be partially finished but still needs, for example, assembly or another part to complete the product. In some cases we might use direct and indirect materials in the production process. The transition means the product is still in process hence we call this type of inventory product-in-process inventory.
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Finished goods
Finally, this is what it’s all about. These are the products that do not need further processing and are ready for the consumer. This could be either the full assembled product or a part for a certain product.
The next question is, how do we get an inventory optimally organized? Rompa Group has been implementing Vendor Managed Inventory. This is a way to let data decide on the inventory and is not dependent on guesswork from an individual. Would you like to know more about VMI, such as the history, advantages and disadvantages? Make sure to read it here.
Merchandise or finished goods?
They are similar though, both merchandise and finished goods are ready to be sold. The main difference between these two is that finished goods have only completed the manufacturing process, while merchandise are products already bought by a company without needing extra or other manufacturing.
To give you an example, as mentioned above, Rompa Group produces the Philips Smartclean consisting of 50 different components, these are the finished goods in the complete set. When we talk about merchandise it means that the final product is one assembled item that is being sold.
Made in China
“Made in China” is a phrase we all recognize. We see the labels in our clothing, plastic products and many household appliances. There are many factors that make producing in China attractive. One of these factors is the business ecosystem which connects all parties to the manufacturing process. One does not simply produce a component. We are talking about design structure, manufacturing, delivery and distribution. These businesses are all very well connected and the full process becomes very efficient. There is also a lot of knowledge in China regarding the development in producing plastics. That is why for us, producing in China has a lot of benefits.
How to connect to IoT?
Rompa Group is eager to connect everything. The demand for having more insight in our appliances and electronics on a consumer end continues to increase, but also in manufacturing to maximise efficiency and the possibility to save energy. We solve this by connecting all devices to communicate data such as weight, speed, temperature etc. This data is sent via the internet to other devices which execute the needed actions to improve the process all based on the data. Rompa Group can offer a lot regarding connecting electronics, for example the assembly of electronic components and injection moulded plastic products into finished products. Would you like to know more about connecting plastic products? Read more about IoT in our whitepaper!
Rompa finishes the goods
Rompa Group has many years of experience in product design, production and assembly of various plastics and technologies. Are you interested in introducing a new product? Then Rompa Group is ready to help you get started. With our wide variety of technologies, materials and knowledge we are able to assist you in all cases. Are you interested in learning more about finished goods or other information from our team? Do not hesitate and make sure to give us a call. Our specialists are always ready to answer all the questions related to their field of work.