Supply chain management is complicated, with so many suppliers and distributors to coordinate across the globe. When it comes to managing C-parts and other low-cost, high-volume items, they may seem like a low priority in the overall operations, but the impact of these parts and products is huge. You need a strategy in place to effectively manage the supply chain for C-parts to avoid disruptions, reduce costs, and maintain operations.
What Are C-Parts?
C-parts are small, inexpensive components like screws, nuts, bolts, and other fasteners. They can include seals, gaskets, or small electronic components as well. While these parts are overall a small percentage of most budgets, they are a majority of transactions and contribute to the production of many products which can create challenges in supply chain management.
Challenges Managing C-Parts Supply Chains
- High Transaction Volumes – logistics and procurement teams can be overwhelmed with the number of C-parts transactions, between managing purchase orders, invoices and deliveries, there is a great amount of administrative work that goes into the process.
- Overstocking or Stock-outs – sometimes C-parts can be overlooked because they are an inexpensive item to stock. Stock-outs can result and cause halts in production, while overstocking can cause waste and increased carrying costs.
- Multiple Suppliers – you often need to source products from multiple suppliers which can complicate vendor management, logistics, and quality control
Strategies for Optimizing the C-Parts Supply Chain
There are ways to optimize your supply chain to simplify your process and keep costs down. Streamlining suppliers can reduce the administrative headaches and complexity. By using a single vendor or a group of vendors for C-parts ensures consistent product quality and can simplify logistics. Another way to simplify the supply chain is by using vendor managed inventory systems (VMI) to gain real-time stock level tracking and reduce over or understocking of items. Kitting is another strategy used to group parts into custom kits for assembly processes, which saves time and reduces errors. Annual contracts for C-parts can also reduce some of the administrative burden and lock in savings year over year.
While C-parts might seem small and a tiny fraction of your overall budget, the impact on operations can be overwhelming. By identifying challenges and creating strategies to simplify your supply chain, you can improve cost savings and become more efficient. Gexpro Services specializes in supply chain solutions for C-parts with a network of trusted global suppliers. We help you lower costs and reduce disruptions to your production lines. Talk to our team today about C-part supply chain solutions for your business.