**London**: Altium’s fusion of Octopart and its Altium 365 platform addresses a critical challenge as over 70% of PCB components risk obsolescence before installation. The integration supports real-time supply chain intelligence, enabling agile sourcing, cost reduction, and early risk mitigation in complex electronics industries.
Altium’s head of SaaS product marketing, Justin Sears, has highlighted the integral roles that Octopart and Altium 365 play in enhancing procurement strategies for electronics by facilitating timely and compliant sourcing. The need for improved procurement processes arises from a study conducted by Levison Enterprises, indicating that over 70% of electronic components used in printed circuit board (PCB) assemblies can become obsolete before installations are completed.
Obsolescence presents a significant challenge, particularly when sourcing teams operate in isolation from the electronics development process. As industries such as automotive, aerospace, and medical devices face increasing innovation and complexity, traditional sourcing technologies are failing to keep pace. This disconnect raises concerns among procurement teams about potential delays in product launches and the risk of acquiring substandard components.
To address these challenges, Altium has integrated the Octopart electronic part search engine with its Altium 365 development platform. This combination equips sourcing teams with the real-time information necessary to make informed decisions. Sears emphasised that strategic cost management is essential, stating that procurement leaders must aim to reduce the costs associated with individual bills of materials (BoM), while still considering overall project efficiency from the prototype phase through to production.
Constant vigilance over price fluctuations, availability, and end-of-life notifications for components is crucial, as a lack of supply chain intelligence can lead to reactive purchasing decisions. Referencing Clayton Christensen’s insights from “The Innovator’s Dilemma,” Sears pointed out that strategy should not be treated merely as a transactional event, but as an ongoing process. Incorporating Octopart within a cohesive product development and procurement strategy allows buyers to align more closely with market dynamics.
One Octopart user illustrated the tool’s importance, stating, “I have Octopart open all day, using it at least five times daily to check stock, costs, alternative packaging and datasheets. When lead times are tight, Octopart is a lifesaver, helping me quickly find alternates available for immediate procurement.”
Looking ahead, supply chain uncertainty is exacerbated; Converge, an Arrow Company, reported that over 111,000 electronic parts became obsolete in 2023 without a product change notification. This context has led to the adoption of the ‘shift left’ approach, a methodology where tasks such as user acceptance testing are initiated early in the development phase. Octopart’s functionality supports this approach by enabling procurement teams to make earlier purchasing decisions, thereby enhancing their agility.
In the evolving landscape of procurement, data-driven and agile practices are becoming paramount. For procurement professionals, having clear visibility into supply chains that encompasses schematics, PCB designs, and compliance data is essential. The Octopart BoM Tool assists users by analysing component selections for cost, availability, and lifecycle targets, allowing for agile decision-making supported by verified supplier information and alternate parts sourcing.
By leveraging the combined strengths of Octopart and Altium 365, electronic purchasing teams are positioned to navigate the complexities of modern procurement more effectively.
Source: Noah Wire Services
Subscribe to Industry Updates
