{"id":2000,"date":"2022-09-28T17:17:55","date_gmt":"2022-09-28T21:17:55","guid":{"rendered":"https:\/\/blogs.sw.siemens.com\/xpedition\/?p=2000"},"modified":"2026-03-27T09:37:26","modified_gmt":"2026-03-27T13:37:26","slug":"tools-with-supply-chain-intelligence","status":"publish","type":"post","link":"https:\/\/blogs.sw.siemens.com\/electronic-systems-design\/2022\/09\/28\/tools-with-supply-chain-intelligence\/","title":{"rendered":"How to leverage design tools with integrated, real-time supply chain intelligence\u00a0"},"content":{"rendered":"\n

This blog was written by Chad Jackson, Chief Analyst & CEO at Lifecycle Insights, and comments have been provided throughout by Stephen Chavez, one of our own product marketing managers. Check it out and join the conversation below!<\/em><\/p>\n\n\n\n

Today, electronics manufacturers are facing unprecedented disruptions in the component supply chain. In order to mitigate the risks involved with component unavailability, engineers need real-time integrated supply chain intelligence. An intelligent design-to-source supply flow offers these insights. Supply chain intelligence increases companies\u2019 resilience, minimizing or even eliminating unnecessary delays and costs due to supply chain disruption.<\/p>\n\n\n\n

Supply chain uncertainty: the elephant in the room\u00a0<\/h2>\n\n\n\n

Historically, manufacturers have struggled to manually locate and price electronic components for printed circuit board (PCB) designs. The result? Wasted time and increased frustration.<\/p>\n\n\n\n

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\"Comment<\/figure><\/div>\n\n\n

So true. This basically describes the linear approach or legacy way of PCB design, where design for resilience is not inherent to the overall process. Plus, working in silos still does exist, using inefficient processes that need updating, and functioning with spider-web-like operations in our daily activities. We must continue to evolve with new methodologies and engineering tools, or we will be less successful more and more, or worse\u2026 we simply fade away.

Stephen V. Chavez, MIT, CPCD, CID+ | Sr. Product Marketing Manager<\/p>\n<\/div>\n<\/div>\n\n\n\n

Over the last decade, new web-based portals have emerged that provide direct access to component distributor part sourcing, pricing, and manufacturing data. Their purpose was to ease the challenge of sourcing parts. Even so, Lifecycle Insights\u2019 2022 Electronic Design for Resilience (EDfR) Study revealed that in the last two years, 51% of respondents have still relied on Internet searches to make component decisions.<\/p>\n\n\n\n

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\"Comment<\/figure><\/div>\n\n\n

The results of the survey don\u2019t surprise me one bit.\u00a0Many are sticking to what they know works, even if it\u2019s with outdated methodologies and processes in need of optimization, just to achieve some level of success.\u00a0Then, on the other hand, some PCB designers just don\u2019t know what they don\u2019t know\u2026 which leads them to miss out on opportunities to be better optimized, and sadly, leaves money on the table\u2026

Stephen V. Chavez, MIT, CPCD, CID+ | Sr. Product Marketing Manager<\/p>\n<\/div>\n<\/div>\n\n\n\n

In a world fraught with supply chain disruptions, these manual searches lack the necessary supplier and inventory data to help engineers make more informed component decisions. Furthermore, this process doesn\u2019t provide alerts when an issue arises, which would allow engineers to respond quickly to mitigate project delays.<\/p>\n\n\n\n

Costs and risks of late-stage design changes<\/h2>\n\n\n\n

Supply chain uncertainty is rampant. Today, electronic design companies can expect to experience manufacturing delays, additional costs, and missed critical product launch dates\u2014all because of late-stage component supply issues. The EDfR Study revealed that 69% of respondents require anywhere from two days to more than a month to address design changes when a component issue arises.<\/p>\n\n\n\n

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\"Comment<\/figure><\/div>\n\n\n

I would go one step further and say that companies will<\/strong> experience manufacturing delays, additional costs, and missed critical product launch dates\u2014all because of late-stage component supply issues. The cost of doing nothing and maintaining the status quo will continue to increase and will potentially become catastrophic to a company\u2019s evolution.\u00a0

Stephen V. Chavez, MIT, CPCD, CID+ | Sr. Product Marketing Manager<\/p>\n<\/div>\n<\/div>\n\n\n\n

Even with web-based component portals, companies cannot get a complete picture of supply issues. The EDfR Study also found that they lack real-time insights from component suppliers regarding status changes. More than three-quarters of survey respondents (76%) noted that they struggle to get notifications from their suppliers regarding component changes.<\/p>\n\n\n\n

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\"Comment<\/figure><\/div>\n\n\n

This will continue to be an issue without any temporary relief. I address this in detail in my recently published white paper<\/a>. But even with real-time supply chain intelligence, I am starting to hear of PO\u2019s being bumped or delayed even after confirmation of the purchase being made. For example, you lock in a price and make the purchase for a specific quantity of components and are provided a delivery date. Then a few days later, you receive a notice that your order was either canceled or is now in delay. Again\u2026 the issue will continue or even get worse before it gets any better.\u00a0

Stephen V. Chavez, MIT, CPCD, CID+ | Sr. Product Marketing Manager<\/p>\n<\/div>\n<\/div>\n\n\n\n

It is clear that component supply chain issues impact companies in a big way. More than half of survey respondents (51%) reported that component sourcing directly affected their revenue during the last year. The need for real-time component intelligence is critical. Without it, companies cannot immediately deal with component issues, nor address them when the cost of change is lowest.<\/p>\n\n\n\n

But there is good news too. The survey found that companies are aware of the need to address component supply uncertainty. Some 81% of respondents stated they are either starting to make efforts to improve supply chain resilience or planning to implement solutions to do so.<\/p>\n\n\n\n

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\"Comment<\/figure><\/div>\n\n\n

Yes\u2026 the need for need for real-time supply chain intelligence is critical indeed! As I stated earlier in my comments, the need to evolve current methodologies and ways of operating is essential. It will only get more and more challenging (and more costly) if we remain with status quo.

Stephen V. Chavez, MIT, CPCD, CID+ | Sr. Product Marketing Manager<\/p>\n<\/div>\n<\/div>\n\n\n\n

Characteristics of a resilient supply chain\u00a0<\/h2>\n\n\n\n

A solution that can tackle the range of component supply issues needs to go beyond simple notification of component availability. Solutions that can support a more resilient supply chain must also be able to:<\/p>\n\n\n\n