Spare Parts Obsolescence Management - How to handle discontinuations effectively | SPARETECH Blog

Table of contents

• What is meant by Spare Parts Obsolescence?
  • Spare Parts Obsolescence Management
  • Data obsolescence
• When does a spare part become obsolete or discontinued?
• Why is Spare Parts Obsolescence Management Important in the Manufacturing Industry?
• Spare Parts Obsolescence Management Today: Automation through software solutions

What is meant by Spare Parts Obsolescence?

Discontinued spare parts can pose a threat to manufacturing operations because they are often no longer available. If the machine operator urgently needs a spare part due to a machine failure and it is not in stock, a lack of information about obsolescence and the successor product can lead to long machine downtimes.

Spare Parts Obsolescence Management

💡 Spare parts obsolescence management includes assessing the service life of parts, monitoring manufacturer announcements about upcoming discontinuations and ensuring that suitable spare parts are available.

Machine operators can mitigate discontinuation risks by recognizing potential problems and identifying alternative parts and procurement sources at an early stage. This ensures that the machines can continue to operate efficiently for many years to come, which ultimately has a positive impact on the bottom line.

In addition, companies that keep their spare parts data up to date can reduce the risk of downtime because spare parts are available when needed or can be obtained without much effort.

Data obsolescence

Data obsolescence occurs when product information (e.g., about spare parts) is no longer up-to-date. This negatively impacts the reliability and quality of material master data and leads to less informed decisions.

Learn how SPARETECH can help through Master Data Insights.

Data obsolescence is particularly important in spare parts management because it can lead to errors in inventory management, procurement, and maintenance. If a spare part is obsolete or no longer manufactured, relying on outdated information can lead to stock shortages, increased downtime, and increased costs.

When does a spare part become obsolete or discontinued?

When a spare part reaches the end of its life cycle and is no longer manufactured, it is obsolete or discontinued. There are two main reasons for this:

• ‍Technological progress: Technological progress can lead to certain spare parts becoming obsolete. For example, continuous progress in technologies for spare parts, but also in the manufacturing process, can lead to certain spare parts becoming obsolete and being replaced by newer, more efficient components. This is also accelerated by mergers and acquisitions, for example.
• Changes in legal requirements: Regulatory requirements may change over time, which may also result in certain spare parts being discontinued. For example, if a new regulation requires the use of a different type of material, the previously used spare parts may no longer be suitable.

Why is Spare Parts Obsolescence Management Important in the Manufacturing Industry?

1. Risk of downtime: In many manufacturing processes, even a brief period of downtime can have significant consequences, including lost production, missed deadlines, and reputational damage. 
2. Increased machine complexity: As machines become more complex, the number of spare parts needed to maintain them also increases. This makes it more difficult for machine operators to keep track of product status and ensure they have the right parts available when they are needed.
3. Global supply chains: Many machine operators rely on global supply chains to source the components and parts they need to manufacture their products. This can complicate the management of discontinued spare parts, as current and accurate data may not be available in all plants or locations.
4. ‍Cost savings: By optimizing spare parts inventory, reducing the risk of shortages and minimizing the need for emergency purchases, machine operators can realize significant cost savings. This can help improve profitability and competitiveness in an increasingly competitive market. As a rule, discontinued or expiring spare parts whose discontinuation has only been announced are more expensive than the successor product.
   
   

Spare Parts Obsolescence Management Today: Automation through software solutions

Ensuring up-to-date obsolescence information of spare parts can be a complex and costly task. The good news is that automation is already possible through software solutions.

SPARETECH, the leading data platform for industrial spare parts, gives machine operators access to transparent and reliable obsolescence information directly from our growing partner network. We transform this information into actionable insights so that our users are always proactively informed about product changes and discontinuations as well as available replacement parts. This means that obsolete parts are no longer a surprise, but are identified in good time so that costly machine downtimes can - finally - be avoided.

At SPARETECH, we are constantly expanding our partner network to ensure maximum vendor coverage and data availability for our users. This way, we simplify master data management and enable continuous data cleansing, which is a crucial factor for companies today.

The SPARETECH solution integrates seamlessly with SAP AIN, S4 Hana and many other ERP systems.