Class C Production Components
Purchased parts represent as much as 70% of the cost of finished products for most manufacturers. Many organizations classify these parts based on $$ purchases. The “A” items represent raw material and other major components. On the other end of the spectrum are the “C” components. Typically, this class contains the largest number of parts but represents a very small part of the purchasing budget. The types of commodities vary considerably, which require a number of different suppliers. You do not have much leverage and priority with the majority of these suppliers. Managing “C” components is typically not a core competency for most manufacturers. It is for Falcon Metal!











