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Outsourcing of C-Parts Management

Outsourcing of C-Parts Management
February 12, 2018
Posted By Bossard

The costs of C-parts

Stocked materials cost your company money. Inventory optimization is key in minimizing costs while also keeping the right materials on hand. The ABC Analysis is a useful tool for operating and auxiliary materials as well as for customers and suppliers. Here’s how the ABC Analysis works: Generally, A-parts and B-parts make up 85-95% of the total value of all parts, though the quantity of A-parts and B-parts is as low as 30% of the total quantity. C-parts make up the remainder of the total value and total quantity at 5-15% and 40-70%, respectively. As you can see, C-parts have a low value but a high quantity. This leads to surprisingly high C-part management costs, even though the total value of these parts is quite low.

 

Optimizing C-parts administrative costs

So how can you reduce these high management costs? To do so, you must optimize each of the following areas:

  • Determination of need
  • Ordering process and its control
  • Goods receipt, testing, and storage/distribution
  • Checking and settling the invoice
  • Managing separate suppliers

Does your business have the internal capacity to execute these processes? Do you have someone who can develop an ABC Analysis and alternative strategies for your C-parts management in each of these areas? If so, you’re equipped to save a great amount of costs. If not, you should consider outsourcing.

 

Outsourcing C-parts inventory management

When choosing an outsourced inventory management strategy, you can decide to turn over part of the process or you can give the entire process to an external provider. Giving the entire process to an external service provider may be best, as it allows for a very streamlined process that doesn’t require as much reorganization and training on your company’s part.

When the responsibility is entirely on the inventory management service provider, you will save time and effort and you will only have one bill for all the C-parts transported to your company. The service provider will be the intermediary between you and each of your C-parts suppliers.

Bossard’s Inventory Management is one such strategy. It enables supply-based consolidation in all your C-parts management, including third-party C-parts. Bossard works with a network of customer-approved, qualified suppliers and guarantees the highest level of reliability for products and processes. When you use Bossard Inventory Management, you have fewer intermediary steps. Your C-parts process costs are reduced, your overall supply chain is optimized, and capacity for more important tasks is released.

Find out more now with your free E-Book explaining 6 ways how to save up to 70% on your C-parts management costs.