In a world where obsolescence is inevitable, Ample Solutions explains how it helps turn disruptions into opportunities, strengthening customers’ supply chains and bottom lines.
Imagine you’re a senior purchaser managing a high-volume production line that relies on a critical component—the NXP MCIMX6Q6AVT10ADR. This semiconductor has ensured smooth production for years. But one day, without warning, an end-of-life (EOL) notice lands in your inbox: this key component is being discontinued. Panic sets in as you realise the part will soon be unavailable and there’s no clear alternative. What do you do?
The scenario is a nightmare for procurement professionals, but it’s not uncommon. Technological advances and suppliers discontinue parts making obsolescence a reality many manufacturers face. It can disrupt production, increase costs and cause major delays.
Hidden costs of obsolescence
Production disruptions: Without that critical component, production halts. Resulting delays ripple across the supply chain, affecting delivery schedules and revenue targets. This hurts the bottom line and damages relationships with key customers.
Scrambling for alternatives: Without a ready replacement, the scramble to secure remaining stock often leads to inflated prices, especially when turning to secondary or grey markets. What started as a routine purchase quickly spirals into a cost nightmare.
Quality and counterfeit risks: In the rush to secure obsolete parts, the risk of counterfeit components increases. Unvetted suppliers in secondary or grey markets can slip low-quality or fake parts into the supply chain, compromising product safety and quality. This can result in recalls or failures later, damaging reputations.
Redesign and engineering costs: Absence of a clear replacement forces a scramble to secure remaining stock or begin the expensive redesign process. Engineering teams need time to requalify parts and redesigns often require new certifications, slowing the production cycle.
Three proactive strategies to manage obsolescence
Lifecycle monitoring: Continuously monitor the lifecycle of critical components as early awareness of potential EOL announcements provides time to stockpile inventory or qualify alternative parts, avoiding last-minute disruptions.
Supplier diversification: Relying on a single supplier for crucial components increases obsolescence vulnerability. Diversifying the supplier base by working with a reputable electronic component distributor with a robust supplier network reduces risk, ensuring multiple channels if one source dries.
Inventory management: Balance is key. Excess stock drains working capital, but insufficient inventory can halt production. Ample Solutions helps OEM/EMS companies manage both. It assists in sourcing components during shortages and offers to purchase excess inventory, helping customers offload surplus stock and optimise cash flow without compromising supply chain stability.
With over 10,000 vetted electronic component suppliers, Ample Solutions specialises in shortage sourcing and supplying hard-to-find components. When faced with sudden obsolescence, the company provides access to alternative sourcing channels, competitive pricing and reliable inventory—all while ensuring the quality and authenticity of the components through two world-class Quality Assurance Centres in Shenzhen and Hong Kong.