Benefits of Effective Obsolescence Management

 

Although parts supplier would send an EOL notification before stopping manufacturing, many buyers still can not access this information in-time, which poses requirements for an effective obsolescence management, the benefits of which can be shown from the following aspects (See Methods to manage sourcing issues of obsolete components):

1. Help arrange system redesigns and periodic upgrades accordingly
2. Reduce design reiterations and the resulting new product development costs
3. Minimize problems associated with EOL components in the assemblies
4. Avail smooth operations and unit cost savings
5. Sustain and improve productivity
6. Ramp up the product development cycle time

7. Cut major supply chain disruption and corresponding expenses

In terms of the inevitable accelerated part obsolescence, a proactive attitude and predictive countermeasures play an important role in reducing the loss. And effective life cycle management is such an influential strategy which enables to minimize product costs, promises best possible supply and evades opportunity losses. The early identification of obsolescence shock reduces overall product cost, thereby proper and profitable decisions can be taken including redesigning, substituting with a nearest alternate, working with an alternate manufacturing source, or stocking with the enough quantities.