CADENAS´ Strategic Parts Management PARTsolutions informs purchasers and engineers at a glance which components are Kanban compatible and which kanban supplier is worth considering.
C-Parts: Low value but high effort
C-Parts cause only 20% of the purchasing volume, but 80% of the procurement costs. With regard to the processing costs the purchase price is disproportionately high.
Realizing supplier- and parts consolidation through C-Parts management or Kanban leads to a significant reduction of procurement costs.
Reduction of processing costs with C-Parts management
The Kanban concept allows an agreement for one part on the price, the warehouse location and the storage quantity with the supplier. The components necessary for production are taken from stock when required which the supplier replenishes regularly. With a monthly invoice, they only charge the parts that were actually installed.
Processing costs can be reduced by approx. 60%, since market probing, approval procedures, invitations to tender, comparing offers, order letters, purchase controlling, issuing goods and a major part of controlling are no longer necessary.