August 2024 – Partner with Authorised Sources to Manage Component Obsolescence

Component obsolescence is an on-going concern for most design engineers looking to source reliable components for a long-term project. If component obsolescence isn’t managed efficiently this can result in issues resulting in line stops, unnecessary large financial commitments, long-term storage costs and forced product redesigns.

Component obsolescence occurs when a manufacturer discontinues a product or technology, rendering it unavailable for future procurement. This can happen for various reasons, the most common being, technological advancements, market demand shifts, regulatory changes and supply chain disruptions. Obsolescence can lead to significant challenges, including increased costs and production delays, mitigating these risks is crucial.

The role of authorised sources

Authorised sources are distributors or suppliers who have official agreements with original component manufacturers (OCMs). These partnerships ensure that the components sourced are genuine, reliable and supported by the OCMs. Partnering with authorised sources offers several advantages:

1. Authenticity and quality assurance: authorised sources provide components that meet the original specification and quality standards set by the OCMs. This reduces the risk of counterfeit or substandard parts entering the supply chain.
2. Access to EOL notifications: authorised partners receive timely EOL notifications from OCMs, allowing customers to plan for obsolescence proactively. This information is critical for making informed decisions about last-time buys, lifetime purchases or finding alternative solutions.
3. Technical support and documentation: authorised sources often have access to comprehensive technical support and documentation directly from the OCMs. This can be invaluable when integrating replacement components or troubleshooting issues related to obsolescence.
4. Supply chain stability: with established relationships and direct access to OCMs, authorised sources can provide stable and reliable supply chains, reducing the risk of sudden component shortages.

How best to minimise the impact of supply disruption and manage component obsolescence

Establish long-term relationships

Develop and maintain strong relationships with authorised distributors and suppliers. Long-term partnerships foster trust and ensure a reliable supply of critical components. Maintain open lines of communication with authorised sources, asking for regular updates and feedback sessions with distributors can help address potential issues before they become critical problems.

Consider obsolescence at the design phase

Quite often poor component selection in development can lead to premature product redesign, requalification or end of life. It’s important for customers to consider the OCM’s commitments to long-term availability, new products launching and stability of the company or if any possible near-future mergers. Can the OCM offer a controlled transition process through end of life and help with design support. Design engineers should retain all true files including VHDL, spice-models, test-vectors etc) in case a rebuild is required soon.

Avoid unnecessary obsolescence costs

Component obsolescence must be considered at the initial design phase and should not just be an afterthought for design engineers. If not discussed in the initial design stages obsolescence can offer numerous purchasing problems with unexpected cost implications such as redesign costs, component storage and after-sales service.

It’s important to consider that if your equipment has a long qualification, production or in-service life you will face component obsolescence. Preventative planning by purchasing, component engineering design and program management will help reduce or eliminate associated costs and risks.

Proactive monitoring of component lifecycles

Remember to regularly monitor component supply problems and product discontinuation notices (PDNs), partner with a distributor who will keep you updated and work as an extension to your organisation. There are also component management databases which can provide you with a PDN notification to highlight any supply changes that affect your products.

Last time buy: to buy or not to buy?

LTB orders are inevitable, but a supplier with an established EOL transition partner offers the chance of a risk-free ongoing authorised stock and production if demand rises, redesigns are delayed, or in-service commitments are extended.

Purchase from authorised sources

The risk of counterfeit or inferior products from unauthorised sources represents a significant risk to production yield and failure rates (MTBR). Unauthorised component sourcing can lead to on-going quality issues, line stops, delayed product launch, increased redesign and production costs.

Component obsolescence is an unavoidable aspect of modern technology management. However, by partnering with authorized sources, customers can mitigate the associated risks and ensure a steady supply of high-quality components. Authorised sources offer critical benefits such as authenticity, access to EOL information, technical support, and supply chain stability. By leveraging these advantages and implementing proactive obsolescence management strategies, customers can navigate the complexities of component obsolescence with confidence.

As an authorised distributor for over 25 of the world’s leading power electronic component brands, GD Rectifiers stocks a broad range of products directly from the original manufacturers and can offer original warranties and guarantees from the manufacturers. GD Rectifiers’ distributor stock is date coded with no solderability risk and are marked with the original manufacturer’s part numbers helping to provide consumer confidence in our compliance and quality standards to the OCM’s original product specification. We stock a wide range of power electronic components from world leading manufacturers such as Littelfuse, IXYS, Semikron, Bussmann, Mersen and Enerdoor.

For further help on component obsolescence support, or to discuss an enquiry with our sales team, please contact 01444 243 452 or email enquiries@gdrectifiers.co.uk.