Why Electrical Engineers and Procurement Need to Collaborate from the Start

Design Engineers vs. NPI Procurement: A Tale of Two Teams

While stronger collaboration between design engineers and NPI procurement teams has its benefits, it’s easy to understand why it doesn’t happen naturally. 

Design engineers are often driven by two priorities: building world-class products and getting them to market fast. To them, procurement often feels like a bureaucratic roadblock. They see the rejection of preferred components due to supplier qualifications or the need to vet companies according to specific criteria as compromises that hinder creativity and innovation. 

Procurement, meanwhile, isn’t trying to be an obstacle. Without early involvement in the design process, though, they often end up in the unenviable position of reviewing and rejecting parts en masse (to the engineer’s chagrin). They frequently receive last-minute BOMs with hundreds of components to qualify, many of which are costly or difficult to source.

If product development were a Formula 1 race, engineers push for speed while procurement works to maximize steering and control. Both, however, are essential to reaching the finish line.

So why do these teams struggle to find common ground?

Why Engineers and Procurement Stick to Their Silos

Beyond their contrasting yet complementary goals, two key factors reinforce the divide between these teams:

First, engineers and procurement operate under different definitions of time well spent. Engineers prioritize designing high-quality products with the best components, focusing on performance and user experience. It’s neither practical nor efficient for them to become experts in part availability, lead times, or compliance—although a basic understanding certainly helps. Because of this focus, procurement’s concerns often seem like background noise, despite having a major impact on engineering success.

For procurement, success comes down to two things: securing the right parts at the right price, ensuring supply chain sustainability. But that requires navigating a complex checklist, including:

1. Checking stock and lead times
2. Verifying origin and supplier reliability
3. Confirming pricing and cost breaks
4. Ensuring compliance with company and regulatory requirements
5. Evaluating financials and tax status
6. Assessing supplier relationships for long-term value

While engineers don’t need to master these steps, they do need to recognize how procurement’s work directly influences their ability to build and deliver great products.

Second, communication is inconsistent and largely dictated by project managers. If a PM involves procurement early, there’s a much better chance for them to work collaboratively with engineers. Otherwise, these teams remain in separate silos, only connecting when engineers need parts at the end of the design process. This ad hoc approach creates misalignment, making communication reactive rather than an integrated part of the process.

Third, there’s a data gap. Engineers may reference distributor websites for part selection, but these sources rarely provide the full scope of procurement’s considerations. Engineers often make decisions based on a limited data set, missing critical factors like long-term availability, cost efficiency, and supplier stability. This not only leads to unexpected roadblocks but also limits their ability to make truly informed choices.

Why Teams Need to Ditch Their Silos

Not every imperfect system needs fixing. Engineers and procurement specialists have different priorities, and in many cases, that’s fine. But when external pressures start making their jobs harder, misalignment becomes a costly issue.

Today, the market is introducing new challenges that demand tighter collaboration. Without a more cooperative approach, both teams will face increasing friction.

These external pressures vary across industries and regions, but nearly every company will be forced to navigate them in the months and years to come. 

Geopolitics Is Heating Up

Tariffs, sanctions, and trade restrictions aren’t new—but they’re multiplying fast. This adds complexity to sourcing approved components and ensuring compliance with shifting regulations. 

In March 2025, President Trump issued a 25% tariff on imports from Canada and Mexico, 25% tariffs + 10% tariffs on Chinese imports, and 25% tariffs on automobile, semiconductor, and pharmaceuticals. 

Additionally, the number of entities being sanctioned shows no signs of slowing down. There are currently around 15,000 entities sanctioned in one form or another by the United States. In 2023 alone, the Biden administration added 2,500 organizations to its Specially Designated Nationals (SDN) List, a consolidated list of sanctions maintained by the Office of Foreign Asset Control (OFAC). 

Additionally, entities are being continuously added to the Uyghur Forced Labor Prevention Act (UFLPA) list. The UFLPA list bans U.S. importers from doing business with companies implicated in forced labor practices (both directly and indirectly). In January 2025, 37 entities were added to the list, bringing the total number to 144. One company recently added, Zijin Mining Group, Ltd., was found to have ties to several Tier 1 entities in the automotive and electronic consumer goods industries. 

Under this constant state of flux, procurement specialists and their companies are scrambling to ensure their supplier lists are free from entities that could result in products being seized, the company being fined, or the brand incurring major reputational damage. 

To avoid this, engineers and procurement need to work together to identify suppliers and parts that meet these ever-changing requirements.

Environmental Concerns Are Also Looming

Despite potential deregulation in the U.S., major markets like Europe continue pushing aggressive sustainability rules. Some key regulations include:

• Restriction of Hazardous Substances (RoHS)
• Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH)
• Corporate Sustainability Reporting Directive (CSRD)
• Corporate Sustainability Due Diligence Act (CSDDD)
• Regulation on Deforestation-free Products (EUDR)
• EU Battery Regulation

While the EU’s new Omnibus Package may adjust certain compliance timelines, the broader trend is clear: strict environmental regulations aren’t going away. Companies will eventually need to comply, so planning ahead is paramount.

Procurement specialists now face mounting pressure to ensure all components meet compliance requirements. Early collaboration with engineers and compliance teams will prove essential to doing so and avoiding costly redesigns.

Obsolescence Continues to Persist

While obsolescence isn’t occurring at the same rates as it did during the COVID pandemic, it remains a persistent issue. A Z2Data analysis in 2023 found that:

• 78% of obsolescence events stem from market demand shifts
• 15% are driven by technology advancements

Additionally, geopolitical shifts and regulatory updates (e.g., such as REACH’s three updates to the Substances of Very High Concern List in 2024) are accelerating component obsolescence, often sending engineers back to the drawing board. 

The Bottom Line

Procurement is responsible for ensuring every part meets compliance requirements, but those decisions start with engineers. The components they select dictate whether a product can successfully pass through procurement’s checks or if it will get stuck in a cycle of redesigns.

Engineers might argue that their time is best spent designing rather than navigating regulatory complexities. But, choosing parts that fail procurement’s “red tape” tests leads to wasted time and delays.

So, how can engineers protect their time and avoid costly rework?

Bring procurement in earlier.

The Benefits of Cross-Departmental Collaboration

Bringing procurement in earlier might seem like an invitation to slow down the creative process. Who wants to adhere to additional limitations during product development?

But in reality, early collaboration streamlines product development, reducing delays, mitigating risks, and optimizing costs.

Here are three key benefits:

Engineers Can Design—With Procurement In Mind

When procurement is absent early on, it’s easy for engineers to overlook critical sourcing and compliance checks. Bringing procurement in earlier isn’t about micromanaging engineers—it’s about empowering them with the right information upfront.

Instead of finding out late in the process that a component isn’t available or doesn’t meet compliance standards, engineers can proactively check for:

• Lead times and availability: avoid picking a part with a 120-week lead time.
• Supplier approvals: ensure the part is from an approved vendor, avoiding last-minute sourcing issues.
• Compliance requirements: check against environmental, trade, or safety regulations before finalizing the design.

By integrating procurement’s expertise early on, engineers reduce redesign cycles and bring products to market faster.

It Mitigates Risk

Leaving procurement on the outside of the design process until the very end creates unnecessary risks. If procurement gets involved only at the last minute, two major issues arise:

• Regulatory non-compliance: if a part is eventually found to violate regulations such as REACH and RoHS, the company could risk fines, reputational damage, or more.
• Last-minute supplier issues: if a selected component is suddenly discontinued, has an export restriction, or isn’t approved, engineers are forced into urgent redesigns, which can take months to years, depending on the part.

Early procurement involvement gives teams more time to identify and resolve these risks, preventing costly disruptions later.

Early Collaboration Supports Cost Optimization

Waiting until the final stages to address procurement often leads to expensive fixes. Early collaboration helps:

• Identify cost-effective components: Procurement can suggest cheaper, high-quality alternatives that meet design specs.
• Avoid last-minute premium pricing: Rushing to replace unavailable parts often means paying extra or scrambling to secure last-minute sourcing.
• Leverage supplier negotiations: Procurement can lock in better pricing by engaging suppliers earlier.

Collaboration between engineering and procurement isn’t about stifling creativity. It’s about letting teams build with a smarter, more streamlined process from the start. 

How to Improve Collaboration Between Engineering and Procurement (With Practical Steps)

To address the challenges of late-stage procurement involvement, teams must change how they work together and adopt strategies that improve data sharing, communication, and supplier selection.

Here are three key ways to improve collaboration:

1. Work Off the Same Data

While engineers and procurement focus on different aspects of product development, having a shared data source ensures transparency and alignment early in the design process.

Why It Matters

• Engineers gain visibility into procurement constraints: Instead of being surprised by supply chain roadblocks late in the process, they can proactively account for factors like lead times, availability, and compliance.
• Prevents costly redesigns: Early access to procurement data helps engineers avoid specifying obsolete or non-compliant parts that will soon need to be replaced. 
• Reduces back-and-forth delays: Instead of reviewing BOMs in bulk at the last minute, procurement can validate parts in real-time.

How Teams Can Do This

• Adopt integrated tools: Platforms that combine parametric search with compliance data (e.g., Z2Data) allow both teams to access the same information without extra work. Modern electronics design and development solutions (e.g., Altium 365) facilitate seamless integration of this component information directly into your existing PCB design workflow.
• Standardize data-sharing practices: Set up dashboards or automated alerts so engineers are notified of sourcing risks while they’re selecting parts, not after.

2. Foster Clear Communication

Bringing procurement into the process earlier doesn’t just require tools—it requires structured communication between teams.

Why It Matters

• Reduces bottlenecks: Engineers can ask procurement for quick part validations early rather than waiting until a full BOM is finalized.
• Ensures procurement can do thorough vetting: Procurement needs time to check supplier viability, negotiate pricing, and ensure compliance. Late-stage involvement limits their ability to do this effectively.
• Prevents last-minute scrambling: When engineers and procurement work in silos, projects face unexpected sourcing issues that delay getting the product to market. 

How Teams Can Do This

• Create a standardized workflow: Instead of ad hoc procurement requests, make early engagement a required step in the design process. 
• Schedule regular cross-team check-ins: Weekly or bi-weekly design reviews with procurement involvement can help reveal sourcing concerns early on.
• Use centralized communication channels: A shared communication channel or project management tool can streamline real-time collaboration.

3. Create a Smart Part and Supplier Selection Process

Beyond just sharing data and improving communication, companies should optimize how engineers select parts in the first place.

Why It Matters

• Reduces redundant approvals: If engineers choose from pre-approved parts and suppliers, procurement doesn’t need to re-vet every component from scratch.
• Enables better supplier negotiations: Using existing supplier relationships gives procurement more leverage to negotiate volume discounts and long-term deals.

How Teams Can Do This

• Implement a preferred parts list: Maintain a database of pre-approved components and suppliers that engineers can pull from instead of sourcing new parts every time.
• Use supplier history as a guide: If Product A used Supplier X successfully, engineers should be able to easily check if Supplier X has parts that fit Product B’s needs.
• Adopt tools that track supplier approvals: Platforms like Z2Data can help engineers quickly identify previously approved parts, reducing the number of new components requiring procurement’s review.

How Technology Can Play a Role In Effective Collaboration

Effective collaboration between engineering and procurement teams is no longer  just a nice-to-have. It’s critical for long-term success. With the pace at which global supply chains—and the disruptions that threaten them—continue to evolve, technology plays a vital role in helping teams stay in lockstep when addressing new challenges. 

Here are three ways technology can help: 

One Shared Source of Truth

One of the biggest hurdles in collaboration is the lack of shared information. Engineers and procurement specialists often rely on different systems to track parts, suppliers, and compliance, leading to fragmented data and communication breakdowns. Cloud-based electronic product development solutions like Altium 365 integrated with Z2Data help teams access critical information from the same source. 

• For engineers, this data can be parametric information such as voltage size, material, grade, and more. 
• For procurement, it can be pricing, lead times, REACH and RoHS compliance, supplier financials, and more. 

Real-Time Updates to Critical Info

In an era where things change day-by-day, a database teams can lean on must be run on real-time updates. It’s invaluable that the data engineers and procurement professionals rely on is up-to-date with market changes.

• For engineers, this may mean that a part they want is EOL or has a lead time of 112 weeks following a factory fire.
• For procurement, this means knowing how a product’s parts might be affected by the latest REACH SVHC update every six months.  

AI Can Help Formulate Risk Scores for Suppliers

AI is only beginning to play a decisive role in the supply chain. One of the best ways it can help procurement right now, though, is by synthesizing a wide array of data points, including historical performance, compliance records, financial stability, geopolitical factors, and supply chain disruptions, to create cumulative risk assessment scores for suppliers. 

These scores give procurement teams a comprehensive view of potential risks—both short- and long-term—associated with working with specific suppliers. By analyzing these aggregated insights, procurement teams can make more informed decisions about which suppliers to prioritize or avoid. Over time, these decisions will help mitigate risks before they impact the supply chain, ultimately facilitating more reliable, sustainable supplier relationships. 

Conclusion

It’s time for engineering and procurement teams to see the mutual benefits that come from collaborating more closely. By adopting the right tools and establishing clear, thorough processes for review that start early, teams can streamline their product development cycle. In the end, this collaborative, interdependent approach will give both teams exactly what they want: a great product delivered quickly to a clamoring market. 

​Access comprehensive supply chain data directly within your design and development environment. Start using Altium 365 and Z2Data integration today.