A very typical instrument in material management is the ABC Analysis. Here, three material groups are formed. The assignment of the articles into the respective category A, B or C takes place on the basis of value-quantity relations, whereby C goods represent low-value materials with a high procurement quantity.
C-parts are usually low-priced and strategically less significant. As a result, there is often considerable potential for savings here, since the organizational procurement effort is disproportionately high in relation to the price, which, however, receives too little attention strategically.
Thus, the opportunities only become clear when one looks at all costs associated with the procurement of goods. These procurement process costs, which include all the work steps from need assessment and purchase requisition, to order and intralogistics, to goods receipt and document processing, have a far greater impact on the total cost of C-parts procurement than material costs.