C-Parts are articles with a low purchase volume, but extremely high process costs.
Most of the time, C-Parts are MRO-articles (Maintenance, Repair and Operations). Different to direct materials, MRO-articles have a secondary importance for the end product and are not directly consumed as a main part. However these parts (such as tools, spare parts, screws, nuts and bolts) are essential for the production.
Typical characteristics of C-Articles:
- Involves high order effort
- Attracts high process costs
- Low price per unit
- Consists of numerous small orders
- Includes many diverse suppliers
- Involves many different purchasers
- Tends to get missed for strategic procurement, due to the low value