Three ways to make your sourcing as secure as possible despite severe shortages of electronic components
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Solution end to end
You’re launching a new product and worried that your project might suffer from the ongoing crisis in the electronic components market. To reduce the risks of obsolescence, stockouts, or to better optimize your product’s lifecycle, we’ve found the solution: “Design for Procurement” or DfP!
Here are the 3 key steps to secure component sourcing and availability.
What is “Design for Procurement” in electronic manufacturing services?
Design for Procurement, also known as DfP, is a concept applied by sourcing experts to optimize the economic and technical performance of an electronic product in the short, medium, and long term. This approach involves identifying sourcing constraints, obsolescence risks, and the technical and economic performance of electronic components in order to select the best combination of parts for a product and build a supply chain risk mitigation plan.
Tip #1: Create a detailed report of all the components in your electronic product
Every new design project should start with a detailed report listing all components and their associated risks. This minimizes uncertainties related to supply chain challenges by providing crucial sourcing insights for each electronic component, including:
Component maturity
Obsolescence risk in the market
Number of available sourcing options
Possibility of replacement with alternative components
Our expert’s tip
If a component has only one sourcing option, it’s classified as a “critical” risk. For certain highly specific components with no alternatives, it’s essential to secure additional guarantees, such as a minimum 10-year lifespan or a certain level of available inventory.
Reducing component supply risks by two-thirds? Yes, it’s possible!
Thanks to the investigation and recommendations from our DfP team, one of our clients—a supplier of connected home energy optimization devices—was able to secure its supply chain.
Our experts rely on the capabilities of the SILICON EXPERT software, which performs in-depth analyses of a product’s component BOM (Bill of Materials). Its database is constantly updated and enriched.
As a result, some components were replaced with higher-quality ones that had no proven shortage risks. One supplier also presented a critical obsolescence risk for four components. Identified during the first BOM analysis, they were replaced with fully compliant alternatives with no such risk and in line with REACH and ROHS standards.
Tip #2: Factor in sourcing constraints during product design
Bringing in Design for Procurement experts from the beginning of your product development process is the safest way to optimize design and ensure successful industrialization. Since it’s nearly impossible to meet 100% of component needs, anticipating crisis scenarios is crucial—carefully selecting components and planning for every possible situation before production begins.
Extending a product’s lifecycle by two years—thanks to DfP expertise!
For a traffic light project called “Millénium” for LACROIX’s City division, our priority was to secure long-term production. By identifying additional sources, we ensured component availability through 2028. Without this, several single-sourced components could have halted production as early as 2026.
Tip #3: Choose a partner with strong relationships with distributors and manufacturers
The five largest electronic component distributors are spread across China, North America, and Europe. That’s why it’s vital to develop strategic relationships with them—while also maintaining strong ties with multiple direct manufacturers. These partnerships are key to securing supply chains and reducing component costs.
At LACROIX, we’ve analyzed the most strategic suppliers for our clients and built a list of about 15 partners with whom we maintain strong, ongoing relationships. This gives us early access to critical information—often ahead of our competitors—helping us stay one step ahead in procurement.
To improve the cost efficiency of a temperature control system in the automotive sector, our Design for Procurement experts proposed seven new solutions beyond the original design. Two of these led to a 39% reduction in production costs, notably by replacing one component with another of equivalent performance.
In today’s context, optimizing component sourcing should be a top priority when launching any new electronic product. Analyze, anticipate, and surround yourself with the right experts—these are the key strategies to overcome sourcing-related risks.
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