Smith’s chief procurement officer, Todd Snow, explores how proactive obsolescence strategies help purchasing teams secure supply, ensure quality and futureproof production lines.
Nothing lasts forever, including components and their production runs. However, when a run finally ends, where does that leave the companies relying on those parts for production, service and repair requirements?
Procurement teams need to develop proactive obsolescence strategies for key components before problems arise. By following a few simple best practices, they can plan effectively and ensure a consistent supply.
Firstly, procurement teams must stay up to date on market trends and closely follow component lifecycles to prepare for obsolescence before a part goes end-of-life. While product change notifications can help buyers stay informed, they can be inconsistent and unreliable in providing enough lead time to avoid unexpected EoL situations.
Open-market distributors with a broad global reach often see trends emerge before their impacts become widespread. Equipped with this information, companies can work with their supply partners to accurately forecast their future needs and establish long-term inventory-management plans.
Secondly, once a product reaches EoL, procurement teams need to review their options for maintaining a steady supply of parts and remain agile in order to prepare for tomorrow. Companies should take advantage of last-time-buy opportunities or look to supply partners in the open market for additional sourcing options. As supplies for obsolete components become increasingly limited over time, procurement teams can begin to work with commodity experts to identify and source alternate parts to update their builds and futureproof their supply chain.
However, sourcing obsolete parts is only half the battle, as the acquired buffer stock will also need to be safely stored away for future use. A flexible inventory-management program utilizing secure, climate-controlled, third-party facilities provides safe storage for parts, which can be shipped on demand or a set schedule to suit a company’s specific needs while freeing up physical space at the manufacturing site.
Thirdly, when components are no longer available from the original manufacturer, full traceability can be difficult—if not impossible—to determine. A robust quality program helps procurement teams properly vet parts purchased on the open market.
Validating product quality requires a multidimensional approach. From strict supplier-screening processes to carefully maintained environmental controls, companies must do their due diligence to prevent faulty or damaged parts from entering the global electronics supply chain. Additionally, their sourcing partners should have stringent inspection and testing processes in place that are backed by industry-leading certifications and accreditations, such as CCAP-101, AS6081 and AS6171. These efforts help ensure each company’s bill-of-materials includes only quality components.
Finally, managing the challenges associated with obsolescence can be overwhelming, but an experienced partner can help mitigate those difficulties and strengthen a company’s supply chain. With strategic insights into the current market, effective partners can develop innovative and flexible solutions that address the unique requirements of each situation. By streamlining these processes, procurement teams will have the critical support needed to successfully avoid costly disruptions and get back to business.
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