Electronic components are becoming obsolete in shorter and shorter cycle times, and unprepared companies find themselves stuck in reactive mode when parts are deprecated.
These days, the average life cycle of an IC is under two years. When you’re not proactive about sourcing and designing out obsolete parts, you’ll be stuck with a lower-performing, harder-to-source bill of materials (BOM) that will cause your production line and customers problems.
In this article, we’ll cover the basics of obsolescence management for electronic components and provide tips on best practices for engineers, supply chain managers, and procurement professionals to stay ahead of obsolete parts and keep their businesses humming.
What Is Obsolescence Management for Electronic Components?
Obsolescence management for electronic components is the systematic process of anticipating, identifying, and mitigating the risks that arise when critical electronic parts become discontinued, reach end-of-life, or are no longer available in the market. This approach goes beyond simply reacting to shortages. It entails building a proactive Component Obsolescence process ensure continuous supply and reduce operational risk.
How does this differ from general product lifecycle management?
While product lifecycle management (PLM) focuses on overseeing the entire lifespan of a finished product—from design to disposal—obsolescence management zeroes in on the health and availability of individual components within that product. In electronics manufacturing and industrial supply chains, a single obsolete part can halt production or trigger costly redesigns, making targeted component-level risk management essential.
Key Activities in Electronic Component Obsolescence Management
Effective obsolescence management for electronic components requires a proactive, structured approach to reduce the risk of costly shortages and disruptions.
Here are the core activities involved in electronic component obsolescence management:
1. Identification and Tracking
Maintaining a real-time inventory of all critical electronic components, especially those with long lead times or limited suppliers. Use tools like bill of materials (BOM) management and component tracking systems to flag items at high risk of obsolescence.
2. Risk Assessment and Impact Analysis
Another key activity to manage electronic part obsolescence is evaluating the potential impact of losing access to a component. Assess operational risks, compliance requirements, and the financial costs associated with redesign, requalification, or downtime.
3. Mitigation Strategy Development
Developing and documenting mitigation strategies for at-risk components is another key component. These may include:
- Qualifying approved alternates or substitutes
- Securing last-time buys
- Establishing relationships with secondary or surplus suppliers
- Planning design changes for long-term sustainability
4. Ongoing Monitoring and Market Intelligence
Continuously monitor supplier roadmaps, market trends, and regulatory updates to spot early warning signs of obsolescence. Use supplier communications, obsolescence databases, and industry news to stay ahead of emerging risks.
5. Cross-Functional Coordination
Coordinate efforts across engineering, procurement, and supply chain teams to ensure that obsolescence risks are addressed holistically and that mitigation plans are executable.
How to Stay Ahead of Electronic Component Shortages with Proactive Obsolescence Management
To stay ahead of electronic component shortages, you need a proactive and disciplined approach to obsolescence management. Prioritize these proven practices to safeguard your supply chain and ensure uninterrupted operations.
Pre-Electronic Component Obsolescence Management Moves
1. End of Life Obsolescence (or Product Discontinuation)
End of Life (EoL) notifications from electronic components manufacturers are important for customers to be aware of, as they indicate that a particular component will soon become obsolete and will no longer be available for purchase or support.
These notifications usually include information about the date when the component will be discontinued, recommendations for replacement components, and other important details such as lead times for orders and last-time buys.
EoL notifications are particularly important for industries such as tech, automotive, aerospace, and medical, where long-term component availability is critical. It is important for customers to carefully review these notifications and plan accordingly to avoid any disruptions in their supply chain or product development cycle.
2. Product Change Notifications (PCNs)
Product Change Notifications (PCNs) are notifications issued by electronic components manufacturers to inform their customers of any changes that may affect the form, fit, or function of a particular component.
These changes could be related to a wide range of factors, such as changes in materials, manufacturing processes, or design revisions. The purpose of PCNs is to allow customers to prepare for any impact that these changes may have on their product designs or supply chains.
PCNs typically include information such as the nature of the change, the expected timeline for implementation, and recommendations for testing and validation of the updated components.
By being proactive in responding to PCNs, customers can avoid potential electronic component obsolescence issues and minimize any disruptions to their operations.
3. Last Time Buy
Last Time Buy (LTB) notifications are issued by electronic components manufacturers to notify their customers of the final opportunity to purchase a particular component before it becomes obsolete and is no longer available for purchase.
LTB notifications typically include information such as the date when the component will no longer be available, the quantity available for purchase, and any special pricing or lead time considerations.
LTB notifications are important for industries that require long-term component availability, such as aerospace, defense, and medical.
Customers who receive LTB notifications should carefully assess their future demand for the component and purchase enough inventory to meet their needs until a suitable replacement component becomes available.
Expert Note:
Treating EoL, PCN, and LTB notifications as actionable signals—not just information—gives your procurement and engineering teams the lead time needed to secure inventory, qualify alternatives, and adjust designs before obsolescence becomes a crisis.
Strategic Post-Electronic Component Obsolescence Management Moves
1. Harvest Components from Internal or External Sources
Establish a structured parts harvesting program to reclaim valuable components from excess, returned, or decommissioned equipment.
Leverage your internal inventory first—salvaging usable parts from legacy systems or production scrap—to support ongoing maintenance and repair.
When internal options are limited, proactively source compatible surplus or refurbished components from trusted external partners or other manufacturers.
This approach extends asset life, reduces dependence on new production, and helps bridge critical supply gaps during obsolescence events.
2. Tap Industrial Liquidators and Secondary Markets
Engage with reputable industrial liquidators and established secondary market platforms to secure surplus, discontinued, or hard-to-find electronic components.
These channels offer a critical alternative when OEMs or authorized distributors can’t meet your needs, helping you maintain production schedules and avoid costly downtime.
By building relationships with trusted liquidators, you gain rapid access to vetted inventories and can often source legacy parts that are no longer available through standard channels.
This proactive strategy contributes to a circular supply chain and keeps essential operations running smoothly during component shortages or obsolescence events.
3. Redesign and Requalification
When no approved substitute components are available, move swiftly to redesign affected products or assemblies.
This often means updating circuit layouts, revising the bill of materials, or engineering new solutions to integrate current, available components.
Prioritize rigorous validation and comprehensive testing to ensure your redesigned product meets all performance, regulatory, and quality standards.
Fast, decisive requalification minimizes production delays and protects your brand’s reputation for reliability.
Challenges in Electronic Parts Obsolescence Management
Information Gaps in Obsolescence Notifications
One of the biggest challenges in electronic parts obsolescence management seems simple getting information on when and where you’ll need to make a change. Despite the variety of obsolescence notifications above, breakdowns in communication between contract manufacturers (CMs) and original equipment manufacturers (OEMs), and between internal procurement and engineering teams, often lead to critical functions not being aware of upcoming or even current obsolete parts in bills of materials (BOMs).
Internal Communication Issues
Unfortunately, that same lack of communication can happen internally as well. Procurement professionals may not pass information about part depreciation along to their engineering teams, or design engineers may unknowingly (or knowingly) spec obsolete components into their BOMs.
How Amplio Helps You Manage Electronic Component Obsolescence
1. Direct Access to a Network of Pre-Vetted Sellers
Amplio’s online platform connects you with a broad network of trusted industrial sellers, giving you on-demand access to a wide range of electronic components, both held as current and in excess by enterprises. This makes it easy to overcome shortages and secure the parts you need without delays.
2. Expert Support for Sourcing Hard-to-Find Parts
Our experienced team works closely with your procurement, engineering, and operations staff to locate hard-to-find or discontinued electronic components. Just as we’ve done for clients like Haydens and NCR, we help you resolve shortages and keep their projects on track.
3. Proactive Obsolescence Risk Management with Amplio’s BOM Management Tools
To further strengthen your obsolescence management, Amplio’s platform offers an advanced BOM management tool powered by proactive risk analytics. You gain early detection of potential shortages, receive alternate part suggestions to ensure uninterrupted supply, and access Amplio’s extensive excess inventory marketplace—all within a single, streamlined interface.
Contact us now to get expert help with managing electronic parts obsolescence. Our excess marketplace platform and team will connect you with reliable sources, find hard-to-find components, and keep your operations running smoothly.
