The Value of Lifecycle Confirmation in Your Obsolescence Management Strategy

With over 50 billion points of Big Data on over 25 million electronic components, semiconductors, and peripheral products, Partstat is uniquely positioned to offer OEM customers a BOM Monitoring Solution that can monitor for component obsolescence and predict allocation in a real-time model updated every 15 minutes. And with our network of over 5,000 manufacturers and authorized channel partners growing by the day, the unprecedented value of our service only continues to increase with time.

Our data-driven ability to monitor for obsolescence and predict allocation, however, is only part of the story. Big Data offers figures and facts that can be invaluable to an OEM at any point in a product’s life cycle, but data alone does little to resolve the numerous conflicts inherent on any bill of material.

To illustrate, imagine that the data at your disposal is showing declining OCM inventories for a critical component on your BOM, yet your current supplier is still listing the component in question as active. These trends imply that a large-scale inventory purchase may be necessary to ensure business continuity, but without direct confirmation from the OCM, your decision to initiate such an order is built on an assumption that may or may not be accurate. If your assumption is wrong, then you place your company in a precarious position where several years’ worth of working capital is tied up in on-hand inventory — and in the inventory storage costs that come with it.

In another example, imagine that your Big Data source states that a semiconductor is transitioning toward obsolescence, yet several other suppliers are still listing the same part as active. In this case, Big Data is doing its job by offering you a useful snippet of information, yet it remains insufficient in determining a high-level supply chain decision. Is the semiconductor being discontinued by a single manufacturer, or is the part being phased out of the market entirely? Should working capital be sacrificed for a last time buy with the current supplier, or could a new supplier be sought out without consequence?

Both of these scenarios are common when managing supply chains, and each paints a picture that clearly illustrates the limitations of Big Data. No matter how detailed the picture may be, the real value of data lies in the eyes that interpret it.

This is why we built our BOM Monitoring Solution around not just the predictive capabilities, but around the 27-plus years of industry experience assimilated by our team of supply chain strategists. As soon as your inital BOM is uploaded, all of the conflicts inherent on every bill of material are resolved by someone who knows your industry — and the priorities of your company — as well as anyone in your own office. This is the central feature of your Initial BOM Analysis.

Modern technology may be capable of providing us more information than we ever dreamed possible, but at Partstat we realize that the human element remains as relevant as ever to the success of a supply chain. Only when information and analysis are combined into a cohesive whole can OEMs make critical supply chain decisions with confidence.

Monitor Obsolescence. Predict Allocation. Confirm Life Cycles. These represent the three core pillars of a successful BOM monitoring service – and Partstat is the only place that proudly offers all three.