C-Parts usually accounts for a large number of all part numbers in a bill of material. They are details such as metal or plastic fasteners (screws, bolts, nuts, rivets, pins, washers, etc.), other small metal-, rubber- or plastic parts such as cables, springs and electronic fasteners.
Significant for C-Parts:
– Lower unit cost
– A wide Product variety
– Larger volumes
– Many suppliers within the segment
Volume vs Value
C-Parts are unique in that only a small part of the total cost of the component comes from its purchase price, often as little as 20%. The remaining 80% of the total costs are indirect costs, in the form of:
– Logistics costs (forecasting, planning, ordering; incoming goods handling, inspection; warehousing, stock taking, stock control; internal transports and line feed; freight, especially express freight; capital costs, scrap and obsolescence).
– Sourcing costs (supplier sourcing, evaluation, verification; negotiation; supplier administration; parts administration; phase-out/phase-in costs).
– Quality costs (costs of preventive quality measures, such as SQA, and of corrective quality measures (scrap, rebuild), as well as indirect costs of quality such as line stops, rescheduling).