C-parts in focus – small components, big impact‍

In the world of procurement, strategic categories and large volumes often take center stage. As a result, smaller, seemingly inconspicuous items — the so-called C-parts — quickly slide out of view. Yet this category, in many companies, creates a disproportionately high administrative burden.

C-parts have a low unit value, but they consume a large share of operational procurement resources. Reasons include high order frequency, many different suppliers, and a frequent lack of standardization in sourcing processes. This article outlines how companies can make their C-parts management more efficient, reduce process costs, and relieve their procurement organization.
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What are C-parts?

C-parts typically include indirect materials, consumables, or spare parts. They are characterized by:

– a low purchase value compared with total spend,

– a high number of different items and suppliers,

– often irregular demand.

Although they account for only a small portion of total expenditure, they generate a disproportionately high administrative workload. Every order, every supplier set-up, and every invoice incurs process costs that often exceed the item value many times over.

The challenges in C-parts management

• High process costs (practice): In the Witzenmann case, each one-off purchase generated average process costs of €140, while the average item value was just €260.
• High process costs (studies indicate): Studies report process costs per C-part order of up to €150 — regardless of item value.
• Numerous suppliers: Managing many smaller suppliers ties up resources in procurement, accounting, and logistics.
• Lack of transparency: Ad-hoc orders and non-standardized processes hinder controlling and compliance.
• Insufficient automation: Excel sheets, emails, and manual workflows are error-prone and time-consuming.
• These challenges mean procurement spends less time on strategic work while operational tasks absorb a disproportionate share of resources.

Understanding and optimizing process costs

Introducing a centralized model can significantly reduce this effort. The Witzenmann example shows that a 1-creditor model (single-vendor model) can cut administrative workload substantially. The savings: over €35,000 per year for around 300 one-off purchases.

Costs related to C-parts arise less from the items themselves and more from the processes around ordering, delivery, and settlement. These include: supplier research and set-up, RFQs and price comparisons, ordering, goods-receipt checks and invoice verification, payment processing, and archiving. A key lever is therefore not squeezing item prices, but reducing and automating these process steps.

Automated procurement solutions as the key to efficiency

Innovative sourcing models target exactly this. With a central service provider that manages the entire C-parts landscape, companies can:

• significantly reduce the number of creditors/suppliers,
• route all orders through a single creditor,
• standardize and automate processes,
• minimize workload in procurement and accounting,
• increase transparency in indirect spend.
• Such a 1-creditor model makes it possible to manage even small one-off purchases efficiently and compliantly — without burdening internal resources. Witzenmann implemented this model successfully with Pedlar. Result (case): up to 85% lower process costs, full relief from manual one-off workflows in procurement, and a measurable 3.3× ROI within one year.

Recommendations for companies

• Analyze your current C-parts sourcing structure and process costs,
• Identify the biggest pain points in the operational workflow,
• Define a target state for automated purchasing,
• Select a provider that offers a holistic 1-creditor model,
• Run a pilot and then roll it out across the organization.

Conclusion: Rethinking C-parts management

C-parts may have a low unit value, but their impact on procurement efficiency is substantial. With an automated, centralized approach, companies can drastically reduce process costs and sustainably relieve their procurement organization — turning an apparent side issue into a strategic lever for greater efficiency and transparency.

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