Inventory Fundamentals: Master Guide

Get a crash course on Sellable vs Non-Sellable inventory types, and how Figgro classifies Raw Materials vs Products.

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n manufacturing fundamentals, raw materials refer to the basic, unprocessed inputs used to create a finished product through a production process.

Types of Raw Materials in Manufacturing:

Direct Raw Materials
- These are materials that become a core part of the finished product.
- Examples: Cannabis flower, trim, distillate, packaging tubes, glass jars.
Indirect Raw Materials
- These are materials used during production but do not become part of the final product.
- Examples: Solvents, gloves, cleaning agents, machine lubricants.

Role of Raw Materials in Manufacturing:

Tracked in inventory and typically assigned a cost.
Used to calculate Cost of Goods Manufactured (COGM) and ultimately Cost of Goods Sold (COGS).
Tracked by batch or lot for traceability, especially in regulated industries like cannabis.

Example in a Manufacturing Workflow:

Step	Raw Material Used	Output
1. Extraction	Fresh Frozen Flower	Crude Oil
2. Refinement	Crude Oil, Solvent	Distillate
3. Formulation	Distillate, Terpenes	Vape Cartridge

Each step consumes raw materials tracked for cost, yield, and compliance.

Let me know if you want this contextualized for Figgro’s training or interface.

In Manufacturing Fundamentals, Finished Packaged Goods (FPG) refer to:

The final, ready-for-sale version of a product that has completed all stages of production, processing, and packaging.

Key Characteristics of Finished Packaged Goods:

Fully manufactured and no longer require processing.
Individually packaged according to branding, compliance, or retail requirements.
Ready for sale to distributors, retailers, or consumers.
Assigned a SKU (Stock Keeping Unit) and tracked in finished goods inventory.

Example in Cannabis Manufacturing:

Stage	Description	Example
Raw Material	Unprocessed input	Fresh Frozen Flower
Work in Progress (WIP)	Mid-production material	Extract or Distillate
Finished Packaged Good	Final product	1g Vape Cartridge, 100mg Edible, 3.5g Jar of Flower

Why It Matters:

Used to calculate Cost of Goods Sold (COGS).
Included in inventory valuation and sales forecasting.
Required for compliance reporting (e.g., METRC tags).
Drives order fulfillment and revenue recognition.

If you're building a system or process in Figgro, FPGs would be tied to:

Sales Orders
eCommerce Sync
Packaging Batches
Inventory Counts
Compliance Manifests

Packaging & Components:

Definition:
Packaging and components are materials used during the final stages of manufacturing to assemble, protect, and present the finished product for sale. They do not change the product itself but are essential for compliance, branding, and retail readiness.

Common Packaging Components:

Component Type	Examples
Primary Packaging	Vape cartridge, glass jar, edible pouch
Secondary Packaging	Outer box, label sleeve, printed carton
Tertiary Packaging	Master case, bulk transport tray, display box
Labeling Materials	Compliance labels, batch stickers, QR codes
Other Components	Tamper seals, child-resistant caps, inserts

Role in Manufacturing:

- Consumed during Packaging Job Runs or Final Assembly
- Tracked as Inventory Components (often as part of a BOM)
- Contribute to Cost Per Unit
- Must meet regulatory compliance standards

Why It Matters:

- Impacts unit economics and cost visibility
- Supports supply chain planning
- Essential for brand presentation and compliance