Component price inflation, escalating consumer demand, and suppliers’ inability to expand production has quickly turned BOM monitoring from a luxury into a critical element of a successful supply chain. In a recent press release, Gartner predicted that “component shortages, rising bill of materials (BOM) and the resulting prospect of having to raise average selling prices (ASPs) will create a volatile market through 2018.” Facing these projections, the ability to monitor obsolescence and receive immediate notice when a last time buy date is issued is no longer just a convenience, but something that can single-handedly preserve the lifecycle of an OEM product.

But the current state of the market also necessitates more from a BOM monitoring platform. Monitoring for obsolescence gives OEMs notice when a reactionary measure is required, but the tool’s widespread acceptance by the industry has somewhat reduced its ability to provide a competitive edge. If each OEM customer is notified that a passive component is going obsolete at the same time, the component’s limited supply will place the majority of these orders on extended allocation. If the critical component is placed on allocation for three or four weeks, the OEM should consider itself lucky; today, it’s not uncommon to see once commoditized passive electronic components go on allocation for 36, 45, or even beyond 52 weeks, potentially compromising millions in potential downstream revenues. It’s incredible how a component that originally sells for a few dollars can grind even the most sophisticated production lines to a halt in an instant.

Monitoring for obsolescence allows an OEM to keep pace in the current market, but it doesn’t put it ahead of the curve. To gain an advantage over the competition, this feature must be combined with a few additional tools that extend the window of opportunity for action beyond the point of notice.

This is exactly how we designed Partstat BOM Monitoring, and why it is considered the supply chain industry’s leading service of its kind. Below are a few of the unique features that make our offering the only platform capable of overcoming the challenges of today’s market:

1. Predict Component Allocation

By drawing from our Big Data pool consisting of over 50 billion data points on over 21 million unique electronic components and semiconductors, we have the ability to not just monitor component obsolescence in a real-time model, but in fact predict when a component is about to go on allocation. This allows our customers to source the inventory quantities they need weeks in advance.

2. Lifecycle Confirmation from a BOM Specialist

Not even the most advanced computer algorithms are completely immune to the conflicts inherent on every bill of material. In the event that one supplier indicates a component is approaching end-of-life and another says it’s still active, Partstat has a team of dedicated BOM Specialists on-hand to reach out and determine the true designation. Our team has over 26 years of experience in the supply chain industry, and they provide our customers the valued human element that other monitoring services have chosen to ignore.

3. 20 Platform Seats

Other BOM monitoring services restrict access to the platform to only one user. This can significantly hinder an OEM’s ability to convey relevant information throughout their supply chain. Every Partstat BOM Monitoring customer, in comparison, receives 20 seats to the online dashboard at no additional charge, which minimizes room for error and allows for a seamless communication across all channels. And each seat also has access to Partstat’s full breadth of features, including lead time confirmation and automated component analyses.

4. Unlimited BOM Analysis Reports

Before production even begins, a BOM Analysis report can prove invaluable for knowing where your bill of material stands within the current market. This report includes BOM pricing, average lead times, and access to real-time inventory charts displaying supplier inventory levels. All of the information is compiled into an Excel spreadsheet, allowing the user to easily share it throughout their company. A comparable analysis elsewhere can cost thousands of dollars, while at Partstat we offer as many as you need as part of your membership (we even offer a free BOM Analysis as part of our 14-day trial!). All we require is for you to upload your BOM – we’ll take care of the rest.

5. Unlimited Rapid RFQs

Instead of requesting quotes from one distributor at a time, Partstat allows users to send requests to every relevant authorized distributor simultaneously at the click of a button. This feature has the potential to save your procurement manager hours of needless busywork. Each quote received is then saved on your dashboard, documented by date, and can be viewed at your leisure. Partstat even allows buyers the ability to purchase directly from sellers on the platform; if the distributor has integrated a shopping cart from their website into their Partstat profile, it can be accessed directly through the online dashboard!

For more information on Partstat BOM Monitoring and our 14-day free trial offering, just click here.