**Global electronics sector:** Altium’s integration of Octopart with its 365 platform offers real-time data to combat electronic component obsolescence exceeding 70%, enhancing sourcing agility, cost management, and reducing risks linked to PCB assembly delays and fraud.
Altium’s head of SaaS product marketing, Justin Sears, has articulated the vital role that the integration of Octopart and Altium 365 plays in enhancing procurement for electronics. This integration aims to address challenges arising from the rapid obsolescence of electronic components, with recent research from Levison Enterprises indicating that over 70% of components used in printed circuit board (PCB) assembly may become obsolete before installation.
This obsolescence poses significant challenges, particularly when sourcing teams are not closely integrated with the electronics development process. The pace of innovation is increasing across various industries such as automotive, aerospace, and medical devices, necessitating a more robust approach to procurement. However, many buyers continue to rely on outdated technologies, raising concerns about potential delays in product launches and the risk of procuring substandard components.
Altium aims to mitigate these risks by providing access to Octopart, an electronic part search engine, alongside the Altium 365 electronics development platform. Together, these tools equip sourcing teams with the real-time intelligence essential for informed decision-making.
Sears emphasises the importance of strategic cost management, stating that procurement leaders must not only focus on reducing individual bill-of-materials (BoM) costs but also consider the broader cost efficiencies throughout the entire project lifecycle—from prototype development to production. This continuous monitoring encompasses price fluctuations, availability, distributor options, and end-of-life product dates.
Failure to integrate supply chain intelligence into the development process can lead to reactive purchases triggered by unforeseen events. Referencing Clayton Christensen, author of “The Innovator’s Dilemma,” Sears noted that many erroneously view strategy as a one-time event; however, a proactive approach is essential in the fast-evolving landscape of electronics.
One user of Octopart described its importance: “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.” This highlights how the platform serves as a critical tool for sourcing professionals under tight timelines.
In addressing supply chain uncertainties, a concept gaining traction is “shift left,” initially introduced by software engineers. This approach advocates for initiating tasks like user acceptance testing earlier in the development process. With Octopart’s capabilities, buyers can enhance their agility, allowing for more informed purchasing decisions at earlier stages.
Recent statistics reveal that, in 2023 alone, over 111,000 electronic parts became obsolete without a Product Change Notification (PCN), as reported by Converge, part of Arrow Electronics. This underscores the necessity for procurement teams to maintain early visibility into the supply chain, thereby reducing risks associated with PCB respins and hasty purchases that could involve components with higher fraud risks.
The future of procurement is increasingly data-driven and agile. Buyers require a comprehensive view that incorporates schematics, PCB designs, mechanical enclosures, and various documentation formats. Octopart provides this visibility, enabling procurement professionals to perform critical analyses of their component selections concerning cost, availability, and lifecycle considerations through its BoM Tool. By offering cloud-based access to reliable supplier information, compliance data, and alternative parts, Octopart aims to significantly enhance supply chain intelligence for electronic purchasing teams.
The potential benefits of utilising Octopart and Altium 365 highlight a definitive shift towards more informed, streamlined, and agile procurement strategies in the electronics sector.
Source: Noah Wire Services
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