Fastener Standardization for Procurement Efficiency: Reducing SKUs and Streamlining Supply Chains
Introduction Fasteners (screws, bolts, nuts, washers, etc.) are critical components in virtually every manufactured product and facility maintenance process. Although individually inexpensive, fasteners often comprise a large share of unique parts in a company’s inventory. For example, a factory’s bill of materials might be 40–60% fastener-related line items, yet these constitute only ~10–20% of total parts cost. This imbalance means procurement teams spend significant time and resources managing dozens or hundreds of fastener SKUs (Stock Keeping Units) for relatively low spend. Fastener standardization is the practice of reducing the variety [...]