Automating Obsolescence Management

Decrease product life cycle risks with automated obsolescence management

Download the e-book for a practical look at how automated obsolescence management keeps your supply chain ahead of risk.

You’ll learn why manual spreadsheets fall short, how hidden lifecycle issues can disrupt production, and what proactive forecasting can do to prevent last-minute redesigns or costly shortages. The guide also shows how automated alerts, real-time data, and smarter BOM analysis give teams more time to plan, safeguard throughput, and respond confidently to market shifts.

Introduction

As technology, industry, and expertise expand, so does the need for the business sector’s ability to adapt. Constantly updating technology, compliance regulations, and processes raise the importance of ensuring that out-of-date technologies or parts do not hinder production.  

Obsolescence Management is the process of monitoring the risks associated with technologies or parts going obsolete and forecasting the eventual end-of-life stage for all aspects of production. The traditional method manages this through spreadsheets and manual upkeep. Accelerating advancement of technology and environmental regulations makes it increasingly difficult to not only stay up to date with product life cycle risks but to ensure there are no oversights or errors in the process.  

Using an automated system frees up valuable time, eliminates the possibility of human error, accurately forecasts the life cycle of parts and technologies, and has the latest updates and information all along the supply chain. 

Ditching the spreadsheets 

The pitfalls of manual obsolescence management 

The manual method of Obsolescence Management, whether done in-house or outsourced to a 3rd party, is an admittedly tedious process. Finding Bills of Materials (BOMs), transferring them to a spreadsheet that tracks obsolescence risks, and keeping it regularly updated requires continuous dedication of staff and resources. 

Assembling everything in a spreadsheet is only the start of the manual process. Analyzing the data, understanding obsolescence risks, and predicting when and where future risks may arise are paramount to a successful Obsolescence Management program. Without intimate knowledge of industry, technology, and environmental regulations, forecasting obsolescence becomes a guessing game. 

An effective Obsolescence Management system prepares you in advance for the end-of-life of parts or technologies. Analyzing spreadsheets of thousands of products in search of potential obsolescence risks is an exhaustive and mind-numbing task that leaves a high potential of overlooking and missing products that are at risk of becoming obsolete. 

Human error is a common occurrence in Obsolescence Management that can cause significant losses for businesses. Having shelves sit empty while your team scrambles to find replacement parts and/or technologies due to an oversight in managing product life cycle risk is a costly and avoidable error. 

It can be difficult for a business to turn its back on an Obsolescence Management method they have invested so much time into. Despite inefficiencies in manual management, it is easy for a business owner to feel attached to their method. Usually, it is a system often created when the business is in its initial stages and the smaller product list was a manageable size. A growing business means more moving parts and growing BOMs. Eventually, the spreadsheet becomes too large to adequately manage. Potential risks of obsolescence go unnoticed, and the spreadsheets become a hindrance to productivity. 

When a spreadsheet gets too large to manually manage, Obsolescence Management systems turn into a reactionary process. Rather than identifying potential obstacles well in advance, business owners are instead learning about obsolete parts and using the spreadsheets to find out which of their products have been affected. 

This is not what an Obsolescence Management system is designed to do. It should be a tool to avoid disruptions in plant throughput and ensure that businesses can seamlessly adapt with a change in supply. An automated system instantly updates those ‘spreadsheets’ and alerts business owners well in advance of areas of concern. It is a proactive system rather than the reactionary manual method. 

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