C-parts Kanban: Efficient Kanban systems for C-parts management

Special Kanban systems enhance C-parts procurement by automatically aligning orders with actual consumption and replacing manual processes. Through digitalization and automation, storage costs can be reduced and sources of error minimized. In addition, the seamless availability of goods ensures uninterrupted production. This positively impacts the company’s turnover, as the entire materials management function benefits from automated ordering processes.

C-parts: What are they, and why are they important?

C-parts are materials that usually have a low individual value, yet they are indispensable for a company’s production. Examples include screws, nuts, gaskets, and even office supplies. Despite their low unit value, C-parts account for a significant share of total procurement costs because they are often required in large quantities and must be reordered regularly. Efficient C-parts management is therefore essential for controlling expenses and minimizing administrative costs.

How does C-parts management work?

C-parts management covers all measures aimed at the efficient procurement and handling of items with low individual value but high administrative effort. A key approach is automated order processing, where stock levels are continuously monitored and reorders are triggered once a defined minimum inventory is reached.

To secure favourable terms and reliable supply, companies typically establish framework agreements with suppliers. Modern solutions such as e-Kanban enable seamless integration between warehouse and supplier, further streamlining ordering processes and proactively preventing bottlenecks.

How can ABC/XYZ analysis help with the classification of C-parts?

Before initiating process optimization, C-parts should be identified using ABC analysis. This method is not only applied to classify goods, but also to evaluate operational processes.

The principle is straightforward: all inventory items are recorded and classified into three categories based on their share of company value or turnover:

• A-parts – very important, the highest share of value.
• B-parts – significant, medium share of value.
• C-parts – less essential, the lowest share of value.

While C-parts have the lowest material costs, they often generate a disproportionately high administrative workload, which can lead to significant process costs.

An extension of this method is the ABC/XYZ analysis, which additionally considers consumption patterns:

• X – high and constant usage.
• Y – fluctuating consumption.
• Z – rarely needed.

Especially in large production and warehouse operations, this combined approach helps to allocate resources effectively and streamline processes.

Kanban system for C-parts — efficient inventory management

A Kanban system optimizes sourcing and administration of C-parts and helps to manage inventories as needed and the entire Procurement process to automate. In this way, administrative costs can be reduced and bottlenecks avoided.

Kanban system variants for C-parts

Different Kanban models can be applied depending on a company’s requirements:

• Two-bin system – A simple principle: each item is stored in two containers. When one is empty, it automatically triggers a reorder.
• Barcode/RFID Kanban – Inventory levels are captured digitally via barcode scanning or RFID-Tags
• RFID tags. Once a defined minimum quantity is reached, replenishment orders are generated automatically.
• E-Kanban – An electronic solution that communicates with suppliers in real time, dynamically managing the supply of C-parts.
• Kanban with load cells and light barriers – Sensors monitor stock levels: weighing cells measure container weight, while light barriers detect part removal. This enables precise consumption tracking and fully automated reordering.

Implementing a Kanban system for C-parts offers companies numerous advantages for managing small parts and tools in a needs-based and cost-efficient way.

Key Benefits:

• Reduced administrative and manual effort – Orders are triggered automatically, minimizing processing workload.
• Lower inventory costs – Only essential stock is maintained, avoiding overstocking.
• Increased supply security – Replenishment is demand-driven and reliably fulfilled.
• Flexibility and scalability – Well-suited for dynamic production environments.
• Seamless ERP integration – Combined with article standardization, it optimizes the entire value chain.

E-Kanban: Special features and benefits

Key features of e-Kanban include real-time data transfer, enabling direct communication with suppliers, and seamless integration with existing  ERP systems, which automatically synchronizes all relevant order and warehouse data. These capabilities provide companies with significantly improved transparency and ensure the continuous availability of required C-parts.

Benefits of e-Kanban

1. Automated orders – Orders are triggered automatically once the defined minimum stock level is reached.
2. Real-time monitoring – Inventory levels and replenishment processes are tracked continuously for precise control.
3. Shortage prevention – Ongoing inventory checks minimize the risk of supply bottlenecks.
4. Inventory cost optimization – Only the necessary parts are ordered, reducing storage and procurement expenses.
5. Lower administrative effort – Minimal manual intervention saves time and resources.
6. Enhanced transparency – Centralized, always up-to-date order and warehouse data.

C-Part Suppliers and Procurement: Key Considerations

When selecting suppliers for C-parts, the focus lies on reliability, value for money, and flexibility. Building strategic partnerships with selected suppliers through long-term framework agreements reduces both costs and administrative effort by lowering purchase prices and standardizing processes.

Automation and Smart Ordering
Automated ordering processes—such as e-Kanban systems—initiate replenishment exactly when needed, minimizing manual errors. Just-in-time deliveries ensure that C-parts arrive precisely when required, avoiding excess inventory and positively impacting overall value creation.

Beyond just-in-time, just-in-sequence ensures parts are delivered not only on time, but also in the exact order required for production. This method is particularly crucial in the automotive industry, where it supports efficient assembly of different product variants directly on the production line.

Integrating e-Kanban systems into existing  ERP systems provides full transparency on consumption and delivery status, enabling early detection of potential bottlenecks. Combining digital connectivity with clearly defined service agreements results in a highly efficient and uninterrupted supply chain.

Frequently asked questions

How do C-parts influence process costs in manufacturing?
C-parts account for up to 80% of process costs in manufacturing, mainly due to administrative tasks such as order processing and warehouse management. While their material value is low, the high handling costs make them a significant contributor to the overall cost structure.

What strategies help reduce procurement costs for C-parts?

• Digitalization: Implementing e-procurement systems streamlines processes and reduces manual workload.
• Automation: Using systems such as Kanban enables demand-driven replenishment without repeated manual orders.
• Framework agreements: Long-term contracts with suppliers reduce ordering frequency and administrative effort.

How does automation reduce procurement costs?
Automation minimizes manual errors, lowers storage costs through just-in-time deliveries, and consolidates order volumes to secure better supplier terms.

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