Go Back Up

Nov 16, 2023 9:59:57 AM C-Parts Management Total Cost of Ownership TCO

C-Parts Management

Although C-Parts are small, low-cost and often overlooked, they make up a substantial amount of most companies’ inventories.

Written by: PUPCO

 

What are C-Parts?

C-Parts refer to the crucial fasteners and connecting components that play a vital role in the support of electrical, mechanical, and communication systems. These components are in high demand globally, with billions of fasteners and fastening elements being utilized each year.

In the realm of materials management, the ABC analysis stands as a widely-used categorization technique. It designates A-Parts as the most valuable components, B-parts as those of intermediate value, and C-parts as the least valuable. These C-parts make up 65-75% of all parts used, encompassing a wide range of essentials like channel strut, threaded rod, beam clamps, screws, nuts, bolts, washers.

What is C-parts Management?
The ultimate objective of C-parts management is to effectively and economically organize the procurement and management of C-parts. When C-parts management is lacking, companies end up investing an excessive amount of effort and resources in dealing with these components. On the other hand, companies that have mastered the art of C-parts management seamlessly operate across their various departments. They have optimized the replenishment process, eliminating any delivery bottlenecks caused by the shortage of C-parts, and avoiding unnecessary costs associated with over-ordering these essential components. At PUPCO we maintain a significant inventory of C-parts and work with our customers to establish supply plans to ensure availability at the time of critical need.
 
How C-Parts Relate to TCO
If you're a C-parts purchaser for an electrical, mechanical, or datacom distributor striving to maximize your investment, the concept of 'total cost of ownership' (TCO) should be at the forefront of your thinking. PUPCO works with our customers to decrease your capital investment, handling, and the space involved with storing C-parts in your facility by shipping directly to your end-customer or maintaining stock to increase inventory turns in your facility.
When dealing with C-parts, a majority of the expenses (apart from the initial purchase price) are often concealed. If you fail to actively seek them out, these hidden costs remain out of sight. Such covert expenses encompass various aspects, including but not limited to:

- The time it takes to order the products
- Capital Investment
- Delivery
- Unpacking
- Storage
- Moving them from place to place
- Assembly

By carefully examining and minimizing hidden expenses, you have the potential to achieve substantial cost savings.

Despite their low per-unit dollar value, C-parts are critical infrastructure components utilized in the electrical, mechanical, and datacom industries. These often underestimated, and even forgotten items can lead to construction delays that are not only costly financially, but can also lead to dissatisfied customers and lost business. Partnering with PUPCO to prioritize proper planning and purchasing strategies to efficiently manage costs and inventory availability, can lead to substantial cost savings and ensure material is available to get the job done on time.

PUPCO

GET IN TOUCH

We are a fully accountable supply chain partner: testing and inspecting product quality, increasing sourcing diversity and supply chain resilience, maintaining deep inventory and offering same day shipping all to better serve our distributor customers.