The Benefits of Outsourcing Purchasing of Consumable Parts

Here are two questions a plant manager or manufacturing executive could be asked by the boss:

Question 1: “What’s your strategy for boosting output in the second half of the year?”

Question 2: “What’s your strategy for procuring nuts and bolts?”

Clearly, the plant output question is the one you likely WILL be asked.  But does your daily calendar truly reflect that?  Or, do you find yourself bogged down by the little things in your operation that divert time away from larger strategic items? 

If this sounds like you, then it may be time to consider outsourcing parts purchasing and other services to a third-party logistics (3PL) provider.

Outsourced purchasing wouldn’t apply to strategic components.  Obviously, you need to stay close to these tier-one and tier-two partners. But there are a host of non-strategic consumable parts vendors – boxes, nuts, bolts, etc. – that require time to evaluate, negotiate a price, and order/replenish products. Time that your team could be spending on more difference-making projects.

Outsourcing purchasing: the basics

The purchasing and storage of the consumable materials can be outsourced to a 3PL provider – freeing up your buyers to work with strategic suppliers, and saving you money in the process.

Typically, manufacturing logistics partners simply store the inventory you have bought and ship them to you based on production signals. But these 3PLs can do much more, including buying parts inventory on your behalf.

The way it works is simple: the 3PL procures the materials, stores them, manages the inventory, and invoices you only for the parts you need, when you need them.  Naturally, the 3PL would build inventory financing costs into the overall cost of the service, and there would need to be a contractual agreement that guaranteed purchased materials would be used.

5 Key Benefits of Outsourcing Parts Procurement to a 3PL

1. Preserve Working Capital & Optimize Cash Flow

Managing the procurement of consumable parts internally often ties up significant amounts of capital. You must purchase materials upfront, maintain safety stock, and absorb the financial burden of carrying inventory—costs that can quickly add up and impact other areas of your business.

By outsourcing consumables procurement to a trusted 3PL like Kanban Logistics, you can shift these financial responsibilities off your balance sheet. Instead of spending cash to purchase and store parts that may not be needed for weeks or months, you only pay for the materials when they are needed and used. This just-in-time payment model helps free up working capital, allowing you to reallocate resources toward core initiatives.

2. Reduce Inventory & Accelerate Inventory Turns

Excess inventory isn’t just a financial concern—it’s a logistical one. Holding large quantities of consumables on-site can consume valuable warehouse space and lead to costly write-offs if parts are damaged or become outdated.

With outsourced procurement, you can adopt a leaner vendor-managed inventory model. The 3PL maintains responsibility for holding and replenishing stock, often leveraging demand forecasts, usage data, and real-time signals to ensure that inventory is delivered exactly when needed—no sooner, no later.

3. Leverage Supplier Expertise & Volume Discounts

When you source consumables on their own, you may lack the leverage to negotiate favorable pricing or terms—especially when ordering in relatively low volumes. In contrast, a 3PL like Kanban Logistics can aggregate demand across many clients and part categories, significantly increasing their purchasing power.

This scale enables the 3PL to secure bulk discounts, access special pricing, and often benefit from preferred supplier relationships. These cost savings are then passed along to the customer, resulting in a more cost-effective supply of materials than would be possible through in-house procurement.

4. Unlock Operational & Administrative Efficiencies

Managing the purchasing process internally requires substantial administrative effort: identifying and qualifying vendors, issuing purchase orders, tracking deliveries, reconciling invoices, and resolving discrepancies. These tasks can strain internal procurement teams.

Outsourcing shifts these responsibilities to the 3PL, relieving your team of the day-to-day burden and enabling them to focus on more strategic procurement functions.

For example, Kanban Logistics offers integrated procurement and kitting services that consolidate multiple consumables into ready-to-use kits. This eliminates the need to manage dozens of individual SKUs and reduces internal labor costs associated with receiving, handling, and staging materials.

5. Enhance Supply Continuity & Reduce Risk

Supply disruptions are a constant concern. Running out of critical supplies like packaging, fasteners, or labels can halt production, delay shipments, and hurt customer satisfaction.

3PLs have the tools and expertise to proactively monitor supply chain risk, track vendor performance, and maintain contingency stock. Combined with robust planning and demand forecasting, this proactive approach ensures a steady, uninterrupted flow of materials—even during demand surges or supplier outages.

When integrated with kitting and warehousing services, this risk mitigation extends even further—supporting end-to-end continuity from sourcing through final delivery.

Outsourcing purchasing to Kanban Logistics

With locations throughout Eastern North Carolina, Kanban provides logistics services and solutions to manufacturers throughout the region.  In addition to parts procurement, services include warehousing, packaging, kitting, JIT delivery, and vendor-managed inventory (VMI services).  To learn how we can support your manufacturing operation, contact Kanban today.