FEATURE DISTRIBUTION & SUPPLY CHAIN MANAGEMENT
MANAGING OBSOLESCENCE CHALLENGES THROUGH PRODUCT KNOWLEDGE
Electronics buyers in many industries will face challenges caused by component obsolescence, and whilst obsolescence will remain a regular occurrence in the electronic components market, there are ways where a proactive and technically competent distributor can help mitigate the risk, impact and cost of obsolescence, says Paul Bandy, director at Aerco
T
here are many systems in operation across a range of industries that were
designed years ago, and they will still be in service for years to come. Component Obsolescence has been around for some time in the electronics industry, but when parts are withdrawn it is likely to cause concern to the manufacturers of these systems that were expected to have a long life availability, and so there will be the preference to produce and maintain the equipment using the same components that were used in the original design for as long as possible. Aerco recognises the need to have a proactive and organised obsolescence management policy in place which enables the distributor to react to obsolescence, and the company are working with its franchises and other suppliers to receive routine notices of pending obsolescence. Early identification of obsolescence will allow a wider range of options to be considered and in turn will help reduce the actual cost of resolving the issue Fortunately, many of the manufacturers
it works with recognise the importance of informing customers of a pending obsolescence issue as early as possible, and this is usually in the form of an End- of-Life document, where manufacturers declare a part is becoming obsolete. This in turn will usually be supported
by a last-time-buy opportunity with given timescales, and it is essential to have a process where it can identify who of its customers has been using a part that is reaching end-of-life. This
8 DECEMBER/JANUARY 2019 | ELECTRONICS
information needs to be passed through to the customer at the earliest opportunity so that the choices available for the component can be taken while those options still exist.
PRESENTING THE OPTIONS Once an End-of-Life notice has been received, there are several routes that can be explored in trying to resolve the issue. The first and perhaps simplest option is to source and buy up existing stock, or to take up the offer of a Last- Time-Buy from the original manufacturer to ensure you have enough of the component to see the life of the product through. The next most favourable option could
be where the manufacturer may be able to offer an alternative component with the same fit, form and function of the original part. Or they may offer the nearest equivalent part and although this is a solution it could also involve a slight re-work of the equipment. When neither of these options is available, buyers may look to purchase the part from the grey market which can be a relatively easy option in terms of finding stock, but this can, and will no doubt increase the risk of buying counterfeit components, which may mean the need for additional testing and certification of the part. However, there will be occasions where
for whatever reason there will be no last-time-buy opportunity, or recommended alternatives available from the manufacturer. If no stock can be sourced it could mean the customer
having to consider a re-design of a part of, or all the equipment, which is not a favourable option and could be costly in both time and money.
HOW CAN WE HELP? Aerco’s team of product managers, who are specialists in various product groups such as connectors, components and cable, are regularly involved in design support where they can offer advice on the selection of components for new designs. This service can also be applied to
help solve some obsolescence issues where the product managers, through their experience and product knowledge can help provide the technical assistance required to support its customers. If a part is no longer available to purchase from the original manufacturer, and they are unable to offer any alternatives, it will work with its suppliers to find another manufacturer who may be able to offer a part that is a ready-made alternative and it will pass that information to the customer for consideration. In Summary, as its customers are placing more and more orders for components, its position in managing obsolescence becomes more important to them as does the ability to provide support and technical information for alternative parts
Aerco
www.aerco.co.uk T: (0)1403 260 206
/ ELECTRONICS
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