Semi-Finished Goods

Examples of Semi-Finished Goods

Semi-finished goods are found across many industries and can take very different forms, for example:

• Cut wooden panels that are later assembled into furniture

• Metal components that still require surface treatment

• Dough that has not yet been baked into bread

• Electronic modules that only become finished products after assembly

What they all have in common is that they hold value but are not yet ready for end use.

Semi-Finished Goods vs. Raw Materials and Finished Goods

To fully understand semi-finished goods, it is useful to distinguish between three types of inventory:

• Raw materials: Unprocessed materials, such as wood, steel, or flour

• Semi-finished goods: Partially processed items that require further completion

• Finished goods: Ready for sale and delivery to the customer

Semi-finished goods therefore sit in between and require special attention in both inventory management and production management.

Why It’s Essential to Have Control Over Semi-Finished Goods in Manufacturing

When semi-finished goods move inefficiently through production, the impact is quickly felt on both the bottom line and delivery performance. A lack of visibility into your semi-finished goods can lead to production stoppages, planning errors, and unnecessary capital tie-up.

When you do have control over your semi-finished goods, you can:

• ensure a stable and efficient production flow

• avoid bottlenecks and waiting time in production

• plan resources and production more accurately

• reduce waste and minimise errors

In short: when you know what you have, where it is, and what the next step is, your production becomes both more agile and more profitable.

Semi-Finished Goods in Inventory Management

In inventory management, semi-finished goods play an important role—especially in manufacturing and production companies. They must:

• be registered correctly in inventory

• be accurately valued in the accounts

• be traceable throughout the production process

As mentioned, a lack of overview of semi-finished goods can quickly lead to bottlenecks, faulty production, or unnecessary capital tie-up.

It is therefore crucial to know:

• how many semi-finished goods you have in stock

• which stage of production they are in

• when they are ready for the next step in the process

Efficient Handling of Semi-Finished Goods with Rackbeat

When working with semi-finished goods, structure and visibility are essential. With Rackbeat’s inventory management, you can:

• create semi-finished goods as separate inventory items

• track their movement between inventory and production

• minimise waste and avoid manual errors

• gain real-time insight into inventory levels and value

This makes it easier to plan production, control costs, and ensure that your finished goods are ready on time.

Ready to Optimise Your Manufacturing and Gain Control of Your Semi-Finished Goods?

If you want better control over your semi-finished goods and a more efficient production setup, it can pay off to get advice from someone who understands the challenges from the inside.

At Rackbeat, our advisors are ready to help you:

• gain full visibility into semi-finished goods in your production

• optimise inventory and production processes

• implement a solution tailored to your business

Book a no-obligation meeting with an advisor and find out how you can gain full control over your semi-finished goods—and more peace of mind in your day-to-day operations: