In many industrial businesses, the fastener range grows over time. New projects, suppliers and specifications lead to more dimensions, lengths and grades than are actually necessary. The result is increased complexity in both procurement and operations — and costs that are difficult to identify but continuously affect operations.
What C-parts are and why standardization matters
C-parts is a categorization from ABC analysis: A-parts are high-value components (typically 20% of the items that account for 80% of the material cost), B-parts are medium value, and C-parts are low-value components — typically fasteners, standard components and consumables.
The paradox of C-parts is that they are inexpensive per unit, but expensive to handle. Research shows that C-parts account for approximately 5% of the purchasing value, but up to 50% of the administrative cost in procurement. Every SKU requires an item number, a supplier relationship, goods receipt, storage space, updates in the ERP and physical picking. These costs are constant per SKU — regardless of whether you buy 10 pcs or 10,000 pcs.
TCO calculation: the real cost per SKU
To understand how much a standardized product range can save, we need to look at the Total Cost of Ownership (TCO) per SKU. A typical calculation example for a medium-sized Norwegian industrial company:
|
Cost component |
Estimate per SKU per year |
|
Item number maintenance in the ERP |
200–400 NOK |
|
Supplier relationship (share) |
500–1,500 NOK |
|
Storage space (1 location) |
300–800 NOK |
|
Goods receipt (4 deliveries/year) |
600–1,200 NOK |
|
Stocktaking (annual) |
100–300 NOK |
|
Obsolescence risk provision |
200–500 NOK |
|
Total per SKU per year |
1,900–4,700 NOK |
For a business with 2,000 unique fastener SKUs, that means 3.8–9.4 mNOK in annual handling cost — regardless of the material value. If you reduce the range to 500 SKUs (four times fewer), you potentially save 75% of these costs.
What a standardized product range involves
A standardized product range is about reducing the number of variants to a controlled and needs-based level. It involves removing overlapping products and limiting the selection to what is actually used in operations.
Standardization is not about restriction — it is about control. Procurement, maintenance and production work from a defined selection, which reduces errors and makes day-to-day work more efficient.
5-step implementation plan for standardization
Step 1: Consumption analysis
Extract 12–24 months of consumption data from the ERP. Sort by SKU and volume. The Pareto distribution will typically show that 20% of the SKUs account for 80% of consumption — these are your core range.
Step 2: Identify overlap
Look for dimensions and grades that cover the same functional need. M10 x 30 in HDG and in electroplated zinc often cover the same application — one of them can be eliminated with the right SOP update. Different strength classes for the same dimension: if 10.9 is used everywhere, the 8.8 variant can be discontinued.
Step 3: Define the core range
Set a quantitative rule: all SKUs with less than X% annual consumption are considered for elimination. A typical threshold: 0.1% of total volume. Consult the engineering department to confirm that no critical special items are removed.
Step 4: Anchor it across the organization
The standardization must be anchored with procurement, maintenance, production and the engineering department. Create a revised range catalogue and an SOP for how exceptions are handled (ad-hoc purchases of items outside the core range).
Step 5: Define a process for special items
Standardization must not make critical special items unavailable. Establish an agreement with a supplier that holds a broad range in stock — including what you do not stock yourselves. It is precisely this dynamic that makes standardization sustainable: standard items with you, combined with fast access to specials from the supplier.
Operational benefits in practice
In day-to-day operations, a standardized product range gives clear benefits:
- Maintenance personnel spend less time finding the right components
- Reduced risk of incorrect assembly (fewer variants to confuse)
- Easier training of new personnel
- Consistent compliance with internal standards
- Fewer deviations in both production and maintenance
- A better negotiating position with consolidated purchasing
More efficient inventory management
Inventory management becomes considerably easier when the number of variants is reduced. Fewer items give a better overview, simpler placement and more precise control of stock levels. This makes it possible to optimize inventory levels and reduce unnecessary tied-up capital. Standardization also lays the foundation for more automated replenishment and less manual handling in day-to-day work.
The most common objection — and how to resolve it
The most common objection to standardization is that you lose flexibility: what happens when a special dimension is actually needed? This is where the choice of supplier determines whether the standardization succeeds or locks the business in.
The solution is a hybrid: a tightly standardized internal range, combined with a supplier that holds both standard and special items in stock. INDUSTRISALG holds 13,000+ fastener items in stock at all times, including imperial UNC/UNF, NORSOK-approved stud bolts in L7 and Super Duplex, Lindapter and Nord-Lock. That means you can standardize your range without sacrificing availability when a critical special item is needed.
Frequently asked questions
How much can I save through standardization?
The reduction in SKU-related administrative cost is typically 50–75% when the range is halved. For a medium-sized Norwegian industrial company, that can amount to several mNOK annually. Additional savings come from a better negotiating position and reduced tied-up capital in inventory.
What are C-parts?
C-parts are low-value standard components (typically fasteners, fuses, consumables) that account for a small share of the material cost but a large share of the administrative cost. ABC analysis is used to classify them.
How long does it take to carry out a standardization?
For a medium-sized business: 3–6 months from consumption analysis to a new SOP. The range reduction itself can take place over 6–12 months as existing stock is consumed.
What is the difference between SKU reduction and supplier consolidation?
SKU reduction is about reducing the number of unique items in the range. Supplier consolidation is about reducing the number of suppliers. Both are parts of an overall standardization strategy, but they can be done independently.
Conclusion
A standardized product range reduces complexity and gives better control throughout the value chain. Fewer variants give lower costs (typically a 50–75% reduction in SKU-related administration), a better basis for strategic purchasing and more efficient inventory management.
In industrial operations this is decisive for achieving predictability and stability. Without standardization, costs increase gradually through inventory, administration and errors. With a controlled range — and a supplier that covers the full spectrum from standard to special — you achieve better use of resources, lower tied-up capital and more efficient operations over time.
Related reading
- Screw heads and drive types: what withstands industrial torque? With torque table and failure mode analysis
- Measuring screw length: the most common mistakes and costly consequences
Get in touch
Send us an overview of your current range, and we will help you identify overlap, propose a core range, and commit to delivery reliability for both the standard items and the specials you rarely need but cannot do without.