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Tag: obsolescence

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Electronic Components

Managing component obsolescence

Electronic component obsolescence can have a ripple effect in the industry. If a component reaches the end of its lifecycle it can impact any products made with the component, affecting the end user.

Obsolescence happening faster

Components now are becoming obsolete much faster than 50 years ago. In the 70s the complete lifecycle of an electronic component was around 30 years. By the 2010s this was closer to 10 years, a huge decrease.

While this might not be a problem for consumers, it does have a considerable impact on manufacturers. If machinery is specialised to a certain type of component, the cost to adjust or replace these machines can be high.

Especially in very specialised fields like aerospace, defence and medical, faster component obsolescence has a serious effect. The process of redesigning these circuits and testing can be hugely time-consuming.

Advancements in technology play a part in these accelerated lifecycles, but there is still a big need for legacy parts.

End-of-life

Component manufacturers usually let their customer base know if a part is becoming obsolete with a Last Time Buy notice or a Product Change Notification (PCN). These can be issued up to about a year in advance to give companies time to make alternative arrangements.

Some companies will decide to stockpile these components once they receive the notification. The alternative is reworking any products featuring the components or finding alternative components.

Of course, any of these options will be costly. A number of companies will be trying to stock the same components so the price will increase. This will increase further once the components become scarce.

Can it be managed?

·         Monitor end-of-life notifications: Even if a PCN does not directly affect you, it may affect other manufacturers in your supply chain. Keeping track of these and being aware of what others in your supply chain use might make all the difference.

·         Consider buying strategies: Depending on how and when you buy components, you may end up with shortages or obsolete excess components. If manufacturers put a supply and buying strategy in place, they can not only minimise the obsolescence impact, but can save time and warehouse space.

·         Component lifecycle management: Staying on top of the component lifecycles can be endlessly useful. If manufacturers can keep track of their components lifecycle changes, they can forecast and prepare for the potential phasing out of the part.

Excellent management

Cyclops Electronics provides a range of services for its customers, including scheduled ordering. If you lack warehouse space but want to buy a surplus of components, whether they’re facing obsolescence or you want to secure a price, Cyclops Electronics can hold these for you and deliver as and when you need them. To learn more or hear about our other services, contact us today on +44 (0) 1904 415 415, or email us at sales@cyclops-electronics.com.

Categories
Electronic Components Technology

Obsolete components and where to find them?

Obsolete electronic components are, despite the name, still widely used and required for manufactured products. The term obsolete often denotes something out of date or out of use. While these electronic components are classed as out of date, they are still used long after their so-called expiry date.

As companies try to keep up to date with the latest technological advancements and customer needs, many original equipment manufacturers (OEMs) will stop producing their older components and move on to manufacture the newest, high-profit electronics.

These older, no longer produced components will soon become obsolete and will be classed as end of life by their OEM, who will release a formal product change notice (PCN) for its customers.

But obsolescence does not stop companies from using a component. There will already be many products that use the component and will still require it. The demand will continue but the stock will shrink, causing the price of these end-of-life components to increase and drive competition to acquire them.

There are a few ways to bypass the need for obsolete components, but it will always be a case of balancing the cost to the benefits.

One option is a drop-in replacement, which is designed to be compatible with an existing product. This, however, can be time-consuming or costly, or both, depending on how many components need to be sourced.

There may also be the option for crossing, or cross-referencing, the obsolete electronic component. A different manufacturer may produce a component very similar to one no longer produced, or there could be an alternative part number which results in a usable substitute. There is always the risk that there is no viable substitute, though, or the alternatives are also obsolete.

Despite the high price for obsolete components, it’s likely that it would still be cheaper for companies to source these discontinued parts than to re-design their whole product around a new component. As such, people looking for obsolete components are often competing with many others and need to find reliable, trustworthy sources of stock.

Among the many companies offering to source obsolete components, there will be some that are untrustworthy. Buyers risk exposing themselves to faulty, counterfeit or overpriced products if they are unable to find a reliable, certified re-seller.

A Cyclops Excess speciality is buying obsolete components from suppliers who have ended up with slightly more than they needed. As a result, our Excess stock includes a huge variety of hard-to-find obsolete electronic components that are still sought after today.

All of Cyclops’s stock is quality checked and as an independent stockist we can buy and sell components according to our customer’s needs. If you’re on the look-out for regular or obsolete electronic components get in touch today at sales@cyclops-electronics.com, or use the rapid enquiry form available on our website here.

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Component Shortage Electronic Components Supply Chain Technology

How Can Companies Combat the Electronic Components Shortage?

Electronic components shortages show no signs of abating, fuelled by growing demand for electronics, limited availability of raw materials, soaring manufacturing prices and lingering COVID-19 disruptions.

Shortages have hindered manufacturers since 2018, but things came to a head in 2020 with the COVID-19 pandemic disrupting supply chains.

The pandemic created an imbalance in supply chains, with demand for many components, from chips to actives and passives, outstripping supply. The question is, how can companies combat the electronic components shortage?

Partner with a distributor 

Electronic component distributors occupy a unique position in the supply chain, representing the manufacturer and customer. Distributors work for both parties to move components up and down the supply chain.

The benefit of working with a distributor is that your company will be in the mix for components not available through traditional channels.

For example, we specialise in the procurement and delivery of electronic components and parts for a wide variety of industries from the world’s leading manufacturers. We can help you beat allocation challenges and long lead times.

Diversify suppliers

Diversity is the key to strengthening your supply chain. You need multiple sources for electronic components. It’s a good idea to have retail and distribution channels, so you have several routes should one supplier channel fail.

Diversity can also be found in geography. A supplier in your home country is essential, but so are suppliers close to the manufacturing source.  

Expand storage capabilities 

If your company can expand its storage capabilities for essential components, this is the simplest way to combat shortages. By storing large quantities of components, you create a supply separate from the chain.

The risk with expanding storage is procuring more components than you need, resulting in oversupply problems that incur heavy losses.  

Source equivalent components  

When components are unavailable, you can specify equivalents that meet your performance and financial specifications. Equivalent components perform the same job as your original components, but another company makes them.

A simple example is Samsung, which uses its own Exynos chip or a QUALCOMM chip in the same smartphone model depending on where the smartphone is sold.

Visibility and proactive planning 

Supply chains are complex beasts that require visibility to manage. Monthly stock updates are no longer sufficient; to combat shortages, you need real-time supplier updates and an inventory catalogue to keep track of supply.

You can proactively plan component shipments and tap into price dips and new inventory when you have visibility over total supply.

Predict obsolescence

When electronic components become obsolete, manufacturers who haven’t planned for it scramble to find components that will work. This inevitably creates bottlenecks in the supply chain as many big companies compete for orders.

Obsolescence is predictable because all electronic components have a run date, and manufacturers update lifespans with inventory cataloguing. You can avoid shortages and soaring prices for rare parts by predicting obsolescence.  

Have shortages? Speak to us

We’re here to help you deal with electronic component shortages. Contact us here.

Categories
Future Technology

Obsolescence Management Before It Becomes A Problem

Like the device you are reading this on, all electronic components become obsolete eventually. As a supply chain manager, it is your job to manage obsolescence and make sure it doesn’t become a problem for your company.

The three reasons for electronic component obsolescence are short product life cycles, innovation, and increased demand.

Short product life cycles fuel update cycles that demand better components, innovation fuels new component releases, and increased demand squeezes supply chains, creating new batches of components that replace the old.

The good news is obsolescence management isn’t rocket science. With planning, you can safeguard your supply chain from the inevitable. Cyclops can help you do this in various ways, working with you to keep your supply chains moving.

How Cyclops helps you manage obsolescence 

With technologies advancing rapidly, the rate of electronic component obsolescence is picking up pace. Life cycles are getting shorter for many components, and shortages are challenging obsolescence management plans.

At Cyclops Electronics, we specialise in the procurement of electronic components, working with global distributors to source tens of millions of parts. Our staff go further than most to find your obsolete parts, and if we can’t source the exact parts you need, we will work just as hard to find appropriate alternatives. 

Here’s how we help you manage obsolescence:

Proactive planning

We keep tabs on component supplies for you and provide timely reports detailing risks. By keeping you in the loop, you get a bird’s eye view of your electronic components, giving you a competitive edge and greater buying power.

Obsolete component sourcing 

Obsolete components might no longer be made, but we hold 177,232 line items in our warehouse and 14 million parts globally. There’s a strong possibility we have the obsolete, discontinued components you need ready to go.

Equivalents 

When obsolete components are unavailable, we can specify equivalents that meet your performance and financial specifications. We can cross-reference many components, such as semiconductors, to find exact equivalents.

Integrated advice 

We can help you identify and mitigate risk when parts and spares become obsolete by integrating with your mitigation plan. We can replace obsolete parts as they age, providing an automated, streamlined obsolescence solution.

Obsolescence is inevitable but manageable 

Component obsolescence occurs when an old component is phased out. Without management, this event can disrupt a supply chain, costing businesses tens of millions (or billions) in lost revenues and corporate costs.

A great example of this is any company that manufactures equipment and supports it over several years, like a boiler company. Electric boilers are supported for around ten years, so the components have to be replaceable over that time.

Obsolescence is a problem because it sends ripples through the supply chain, requiring ongoing management to foresee events and mitigate risks. Cyclops Electronics has seen all this before across all sectors.

Speak with us about obsolescence management 

We’re here to help you manage supply chain risks and deal with obsolescence before it becomes a problem. Contact us here.

Categories
Electronic Components

MLCC supply is beginning to tighten?

MLCC’s

Multilayer ceramic capacitors (MLCCs) are used in many electronics from smartphone screens to laser guidance systems. There was a prolonged lull in demand for MLCCs stretching from 2019 through to 2020, however supply is now tightening and lead times for new components are extending.

This has caused some concern with those who use MLCCs to manufacture products. Will supply continue to tighten? When will it let up? These are good questions. The answer lies in understanding why supply is tightening.

Demand for MLCCs is tightening for several reasons:

  • The automotive sector is increasing in demand 
  • All communications and transport sectors is increasing in demand. 
  • Global inventories are depleting
  • Supply chain challenges due to the coronavirus pandemic
  • Manufacturing bottlenecks due to facilities running at maximum capacity
Increased demand

The main reason for supply tightening is an increased demand from the communications and transport sectors. These sectors consume over half of the world’s MLCC supply and the rollout of 5G is accelerating demand.

The global automotive market is also a big consumer of MLCCs. MLCCs are being used extensively in modern cars. Applications include in battery management, chargers, heater controllers and energy converters. Electric cars use MLCCs because they are reliable and can be surface mounted directly to boards.

Inventory depletion

Inventory management has been a difficult task what with 2020 throwing COVID-19 into the works. This hit the MLCC supply chain like a train. Demand dropped off. This led to suppliers correcting inventory levels and sometimes overcorrecting. When demand increased towards the back end of 2020, supply chains got exposed.

It is difficult to correct inventory when not enough MLCCs are being made. For every 10 that are made 8 get put into use immediately. This leaves little fat left.

Increasing lead times

All of this means increased lead times for MLCCs. Many electronic components suppliers and distributors have them on back order. Some types of MLCC have lead times extending over several months (a long time in a supply chain).

For example, large case (≥ 0603) low-CV commercial-grade MLCC lead times are around 22 weeks. This is a very long time. The only units that are in good supply are small case size (≤ 0402) low-CV commercial-grade MLCCs which are available now.

How can you meet demand?

As 2021 gets underway, we predict that MLCC supply will tighten. Inventories will get stretched and manufacturers will struggle to get a hold of the components they need. Now that you know this, you can prepare.

The best way to assure a healthy MLCC supply is to work with a global distribution partner like us. When you need to source hard-to-find electronic components quickly because of allocation, long lead times, obsolescence, or quality issues, we are here to help. We will work with you to source the MLCCs you need. Go to our home page to use our component search tool and enquire with us today https://www.cyclops-electronics.com/. 

We work with all industry sectors, including the communications, transport, and automotive sectors, to source electronic components. We specialise in the procurement and delivery of electronic components and parts with on-time delivery.

Cyclops Electronics Ltd, Reg. No. SC128862, VAT No. GB561633447, D&B No. 764855367

Registered Office: Titanium 1, King’s Inch Place, Renfrew, PA4 8WF

(Registered in the United Kingdom)

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