Getting Ahead of Component Obsolescence

Estimated reading time: 4 minutes, 45 seconds

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Published September 15, 2025

In 2022, more than 750,000 electronic components reached end-of-life (EOL), followed by another 470,000 parts in 2023.^[1] For procurement professionals, even one missed EOL notice can make a huge impact and result in stalled production lines, rushed redesigns, and unexpected costs.

Procurement teams are responsible for more than just buying the parts; they must defend against obsolescence risks that can delay product deliveries and damage customer trust.

For example, when a critical microcontroller in a product line becomes obsolete without notice, procurement teams may be forced to scramble for replacements, requalify alternatives, or even initiate costly product redesigns. And this is all under tight timelines and strained budgets.

Successful companies do not wait until a component is no longer available in the market to react. Instead, they incorporate obsolescence planning directly into sourcing strategies to give enough time to act before an EOL part becomes a problem.

Life Cycle Management Is a Procurement Priority

While designing, engineers tend to focus on performance, compatibility, and function. Procurement, on the other hand, must think beyond immediate technical requirements into the full life cycle of every sourced component. Without careful planning, parts once viewed as readily available can quickly disappear from the market and put projects at risk.

When teams plan for obsolescence and include these plans in sourcing decisions, functionality and longevity are viewed as equally important. Procurement professionals who prioritize life cycle management help protect the business from costly disruptions down the line.

Today’s electronics life cycles are shrinking, especially in sectors like automotive, Internet of Things (IoT), and consumer devices. Components that previously had life cycles of more than a decade are now EOL in just a few years, increasing the pressure on procurement teams.^[2]

Successful procurement teams go beyond simply responding to obsolescence, engaging in proactive strategies that can mean the difference between a minor adjustment and a major setback.

Proactive Strategies for Managing Obsolescence

To deal with obsolescence before it becomes urgent, procurement teams can take steps to stay ahead.

Monitor EOL and PCNs

Procurement teams should subscribe to supplier notifications that provide EOL and product change notice (PCN) alerts. These can be directly from the supplier or through trusted distributors that provide early warnings when parts are nearing the end of their life cycle. This advanced notice gives procurement time to find other options, secure whatever inventory is remaining, or switch to alternative components.

Maintain a List of Approved Alternative Components

Procurement teams should prepare a list of qualified alternate parts before a crisis occurs. This reduces downtime and avoids last-minute chaos. Building a cross-reference database for important components helps procurement and engineering teams move quickly when a part is discontinued. With emerging artificial intelligence (AI) programs tailored to database automation, this step in obsolescence planning doesn’t have to be a major hurdle.

Plan Backup Inventory

For components with long lead times, high customization, or few substitutes, investing in limited buffer stocks during a last time buy (LTB) may be helpful. This buffer stock planning should be based on realistic forecasts to avoid excess inventory costs. Remember, strategic planning doesn’t mean stockpiling excess inventory out of fear.

Involve Suppliers Early

Strong planning is an essential part of obsolescence management, but supplier and distributor relationships will always play a significant role. Distributors have early visibility into EOL timelines, and procurement teams that treat them like partners are better positioned to identify early warning signs, replacements, and remaining inventory before a shortage occurs.

Strong relationships with distributors and manufacturers can help provide key insights into changes on the horizon. Sometimes, replacements can be suggested, or special buys can be made to extend supply if teams engage early enough.

Work with Engineers During the Design Phase

Since managing obsolescence is easiest before the product is designed, procurement can assist during the design phase by reviewing the selected components from a long-term sourcing perspective. This may include noting parts with limited production commitments, checking supplier history for instability, recommending alternatives from suppliers known for longer support periods and more part availability, and pushing back on single-source dependencies when possible.

Prioritize What Matters

All component risks are not created equal. Some parts may pose a greater threat if they become obsolete, so teams need to focus on where the impact would be greatest.

This means critical-path components like processors, microcontrollers, specialty power devices, and custom parts should take priority, since they are often harder to replace, may require design changes if discontinued, and can cause production delays.

Parts used in automotive, aerospace, or medical applications also require closer attention due to their long qualification cycles.

On the other hand, standard passive components, connectors, and other parts that are more widely available may have drop-in replacements that are easily accessible. It is still important to monitor these parts, but they don’t require the same level of proactivity.

Having a watchlist of high-risk components helps procurement teams determine where to spend their time. By staying targeted, companies can prepare for obsolescence without getting held up managing every minor part on the bill of materials (BOM).

Conclusion

Obsolescence planning is necessary to protect production lines, budgets, and customer commitments. The electronics industry’s rate of change is only increasing, and component life cycles are getting shorter in many fields. Teams that wait for formal EOL notices may be out of time and options.

Smart obsolescence management starts early by monitoring critical components, building alternate sourcing strategies, securing realistic buffer inventory where needed, and staying closely connected to trusted distributors. It also means avoiding overreacting and overbuying parts without a clear forecast, which creates its own set of problems.

Procurement professionals who implement these sourcing decisions in their everyday tasks ensure that their company can always deliver.

[1]https://www.z2data.com/insights/understanding-obsolescence-in-the-electronics-industry
[2]https://siemensmfg.com/electronics-manufacturing-trends/mitigating-end-of-life-obsolescence-in-custom-built-electronics/