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999 Views 2 Replies Latest reply: May 3, 2011 2:11 AM by WendyBourne RSS
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Apr 28, 2011 4:10 AM

What is the best strategy when parts become scarce and even though you show empathy what do you really expect from your suppliers in these times?

Parts are scarce because of understandable circumstances. Car companies are not working through these Bank Holiday weeks so jobs are secured but production decreases. We still have a need but supply is getting scarce. All understanable but what do you expect from a supplier in these times and how long can you cope with the uncertainty of I do not know when supply will be back to normal and meeting demand?

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  • Tom,

     

    This is a very old problem.  When I worked on defense equipment, we always had to either stock pile, identify multiple suppliers, or resorted to custom made replacement parts.  Most equipment manufactured today is expected to be obsolete in a maner of five years or so, especially electronics chips.  Mechanical parts can often be salvaged from damaged equipment, but depending upon your application, they need to be certified.

    For electronics, we used to resort to ASIC's and plug in replacement chips/circuits using the best qualified equipment available at the time.  Luckily, most industrial grade electronics meet a more robust set of requirements then when I started in this business, so old parts still work if you can salvage them.

    I have also been on the manufacturing side, where we had to inform customers that we would no longer support equipment we had sold them.  You reach a point where the expertise, replacement parts, and cost to repair exceeds the benefits from the product.

    If you are building products today, one key question has to be, "how long do you plan to support this product?"  From there you estimate number of units to build, number of alternative suppliers and how long you plan to provide your support.  After that you advise your customers to upgrade to the new and improved version you now produce.  Yes I know some people get attached to a product that works fine for their application and the just want the old one replaced.  Unfortunately, as a user and a supplier, there is a lifetime for the product and you must continue on with the next best or hopefully much better replacement.

     

    I hope this post helps you understand the problem.  It is not new, it has been a pain for many vendors and users over the years and is not likely to be solved in my lifetime.

     

    Thanks

    DAB

  • Tom,

     

    It sounds like you have actually identified two issues:

    1) Obsolescence

    2) Capacity issues in hard times

     

    1) Obsolescence - this is an ongoing project if you don't want to be caught out.  At the start of a design, you can ask the suppliers of the items how long they expect the lifetime of their parts to be, and thus avoid any parts (hopefully) that will not be around as long as you want to be manufacturing your product.  Or if it is an essential part, know that you have to build up a stockpile by a certain date.  However, I suspect in a number of areas you may struggle to find suppliers who would be willing to commit to more than 10 years, shorter for certain products.  If your project also starts to look as though it will run longer than expected, check again - then you can redesign any areas of the product before you commit to a part that will not be available.

     

    2) Capacity issues in hard times - anticipate that lead-times will extend, put your orders in earlier than normal, and make sure that the supplier knows your delivery date is the latest you need them.  Don't expect to be able to put orders in on lead-times shorter than normal, and expect them to be able to help you out - it's not going to happen, sorry.  Nothing can be guaranteed, but the closer your work with your supplier, and the more notice you can give them, the less likely you are to be left on line-stop.  Alternatively, make full use of distributors like Element14 / Farnell, work with them on stocks and orders, and they can do the co-ordination for you.

     

    None of these are guaranteed to avoid all the issues that might occur, but hopefully some forward planning can help lessen the impact.  As DAB says, none of this is new, and these problems occur every now and then.

     

    Good luck!

     

    Wendy

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