How do process costs affect C-parts management?

Process costs have a much greater impact on overall costs than pure material costs. Although C-parts make up only a small share of the procurement volume, numerous work steps such as ordering, goods receipt and invoice checking cause high process costs. According to a study by HTWK Leipzig, an analog ordering process costs around 146 EUR, fully digitalized it is 86 EUR.

What are the best methods for classifying C-parts?

The most common method for classifying C-parts is the ABC analysis, in which materials are divided into three classes according to their value share and consumption: A-parts, B-parts and C-parts. A-parts have the highest value share compared to B- and C-parts, but are only required in small quantities, while C parts are of low value but are used in large quantities. The value share and use of B parts is medium.

What are the most important factors when selecting vendors?

Important criteria when selecting vendors are the price-performance ratio, delivery reliability, adherence to delivery dates, as well as flexibility and availability. However, the depth of the product range and product standardization also play an important role, as does integration with digital procurement systems. Furthermore, factors such as sustainability are becoming increasingly important.

02.04.2026

Efficient C-Part Procurement: Reducing Costs and Optimizing Processes Through Targeted C-Part Management

Author

Fabian von Kleinsorgen VP Growth & Sales Operations

The efficient procurement of C-parts is a major challenge for many companies, because despite their low individual value, these small parts often cause a high administrative burden and rising costs. With well thought-out C-parts management and the right selection of manufacturers, processes can be automated, costs can be reduced and security of supply in production can be guaranteed.

At a glance

ABC analysis: Production goods are classified into A, B and C parts. A and B parts account for a significant proportion of the purchase value, while the process steps for C items increase the overall value.
Use of e-procurement: With e-procurement systems, operating resources can be reordered automatically as soon as replenishment is required. They also ensure close cooperation with reliable vendors, which increases efficiency.
E-Kanban systems: E-Kanban is used to determine requirements and provide C-parts. The technology enables lean and efficient procurement and warehousing of C-parts and reduces the amount of capital tied up in the company.

Definition and examples of C-parts

The term C-parts covers materials or products with a low value, but which are required in large quantities and cause high procurement costs. Their unit value is low, and they are only indirectly relevant to the end product. Examples of C-items include screws, nuts, seals, washers, tools, health and safety items and consumables such as lubricants. Office supplies and IT accessories are also C-parts.

Role of C-parts in the procurement process

Although C-parts are of low value, they require a high volume and administrative effort, which results in disproportionately high process costs compared to the value of the goods. This is due to the numerous work steps such as determining requirements, ordering, goods receipt, warehousing and invoice verification. In view of this, process optimization in the form of optimized procurement is indispensable. The entire value chain in the company can be simplified through targeted digitalization and automation, allowing companies to actively save time and money when reordering indirect materials.

Important: C-parts are also indispensable for the maintenance of machines and systems. MRO procurement should also be considered in the logistics processes, as this can also result in high costs.

Influence of C-parts on the cost structure

C-parts procurement: value share and quantity share of C-parts

C-parts account for only a small share of the procurement volume. Nevertheless, they have a considerable influence on the cost structure, mainly due to the high indirect process costs that arise during their procurement processes. The costs are disproportionately high compared to the value of the goods. In addition, C-parts not only have an impact on overall costs due to the large number of individual orders and complex warehouse management, but also on companies' time resources.

How does the efficient procurement of C-parts work?

The successful procurement of C-parts is based on simple strategies and the automation of processes. E-procurement systems are also helpful in bringing order to chaos and optimizing individual processes in the long term.

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Strategies for optimizing procurement processes

Companies can integrate the following strategies for optimizing procurement processes into their workflows in order to sustainably reduce the procurement costs of C-Parts and simplify C-Parts procurement.

1. Digitalization and automation: By using e-procurement systems such as simple system, orders, approval workflows and follow-up documents such as invoice copies can be mapped digitally, thus minimizing manual errors and accelerating workflows in procurement.
2. Standardization of products: With the help of standardization of C-parts, the number of items and vendors can be reduced, which also simplifies the management of materials.
3. Framework agreements with fixed conditions: Long-term contracts ensure stable prices and delivery conditions, reduce negotiation costs and create planning security.
4. Centralized procurement: Bundling orders via a central procurement office helps to achieve better conditions and increase the transparency of C-parts management. Maverick buying in the company is contained.
5. Introduction of Kanban systems: They enable replenishment to be controlled based on actual consumption and the resulting requirements. They help to minimize stock levels and automatically trigger repeat orders.
6. Vendor selection and development: The strategic selection of reliable vendors with a high delivery capability is essential, as is the integration of these vendors into digital systems.
7. Digital archiving and e-invoices: Paperless processes to optimize document management are in demand. This allows companies to actively save time and costs.
8. Outsourcing logistics and warehousing: It makes sense to work closely with specialized service providers who can efficiently manage the warehouse and replenishment.

Automating the ordering of C-parts

Automated ordering processes can be used to monitor stock levels in real time and automatically trigger orders as soon as the pre-defined minimum quantity of an item is reached. Electronic Kanban systems ( e-Kanban for short) link the warehouse and vendors on a digital level so that replenishment for the production process takes place just-in-time and in line with demand. Thanks to this innovative technology, manual ordering processes will no longer be necessary in future, errors will be minimized step by step, and bottlenecks will be avoided.

All in all, the automation technology leads to leaner inventories, an optimized material flow and a significant reduction in workload for the procurement department.

Benefits of e-procurement in C-parts management

In C-parts management, the use of e-procurement systems such as simple system represents a clear competitive advantage, as they digitalize the entire procurement process for C-parts. Here are the advantages of e-procurement technology:

Faster order processing with fewer errors
Transparent overview of orders and stocks
Automated approval workflows and digital follow-up documents
Simple vendor selection via integrated catalogs
Reduction in paperwork and administrative costs
Saves time and resources

Frequently asked questions

Process costs have a much greater impact on overall costs than pure material costs. Although C-parts make up only a small share of the procurement volume, numerous work steps such as ordering, goods receipt and invoice checking cause high process costs. According to a study by HTWK Leipzig, an analog ordering process costs around 146 EUR, fully digitalized it is 86 EUR.
The most common method for classifying C-parts is the ABC analysis, in which materials are divided into three classes according to their value share and consumption: A-parts, B-parts and C-parts. A-parts have the highest value share compared to B- and C-parts, but are only required in small quantities, while C parts are of low value but are used in large quantities. The value share and use of B parts is medium.
Important criteria when selecting vendors are the price-performance ratio, delivery reliability, adherence to delivery dates, as well as flexibility and availability. However, the depth of the product range and product standardization also play an important role, as does integration with digital procurement systems. Furthermore, factors such as sustainability are becoming increasingly important.

At a glance
How does the efficient procurement of C-parts work?
Strategies for optimizing procurement processes
Automating the ordering of C-parts
Benefits of e-procurement in C-parts management
Frequently asked questions

About

Fabian von Kleinsorgen VP Growth & Sales Operations

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