How to stop wasting money and ensure a secure supply

We are all familiar with the saying “every little helps” – and for Managing Directors and controllers, this becomes particularly evident with C-parts and consumables. As a Managing Director, you often have to negotiate with countless suppliers – not exactly a simple matter, and indeed it can end up quite a complex process. Your colleagues in the Purchasing department are in a similar situation – the Production department expects them to provide reliable information about delivery times and availability.

The problem is that technical departments often order C-parts by bypassing the ERP system and, as a result, also the Purchasing department. This is a phenomenon known as maverick buying, and is now the focus of academic research.

There is a similar level of confusion in Production departments because everyone simply obtains the C-parts they need – meaning exact stock levels are not known. This is understandable, because master technicians in Production departments are measured by the quality they produce – and you cannot achieve this without the right tools, etc. Production managers also face a similar dilemma, as overall production will only run efficiently if consumption and replenishment arrangements work optimally. Failing to succeed in this endeavour will ultimately affect the bottom line. At this point, if not before, it becomes clear why you need to focus on small items like C-parts as much as all the others.