Beyond Basic Part Selection: Using Supply Chain Data to Validate Choices

Electronic component selection ain’t what it used to be; it has evolved far beyond simply matching technical specifications to design requirements. In today's volatile market, engineers who rely solely on datasheets and basic part information are taking significant risks with their designs. Market disruptions, component shortages, and rapid obsolescence have become the norm rather than the exception.

The real cost of inadequate component validation extends far beyond the price of individual parts. When a critical component becomes unavailable midway through production, the consequences cascade through the entire development cycle—causing redesigns, production delays, and missed market opportunities. 

Supply Chain Data: What Engineers Need to Know

What Engineers Need to Know From Key Supply Chain Metrics

While engineers are often focused on technical parameters, several supply chain metrics have become equally critical for successful designs:

• Lifecycle status: Where is the component in its life cycle? Is it new, mature, or approaching end-of-life?
• Multi-sourcing options: Are there multiple manufacturers and suppliers for a part, or is this a single-source component?
• Lead time trends: Are lead times stable, increasing, or decreasing? How do they compare to industry averages?
• Inventory availability: What's the current stock of a part across major distributors, and how does it compare to typical demand?
• Pricing stability: How volatile has a component’s price been in recent months? Are there signs of imminent price changes?
• Regulatory compliance: Does the component meet current and upcoming regulatory requirements (RoHS, REACH, etc.)?

Industry Trends Affecting Component Availability

The electronics component market has been unusually turbulent for the past few years, and it shows no signs of calming. Pandemic-related disruptions, geopolitical tensions, and increased demand from emerging technologies like electric vehicles and IoT devices have created a perfect storm of supply chain challenges. Engineers who can understand these macro trends will be better at interpreting component risk profiles and making more resilient design choices.

How to Interpret Lifecycle Status Information

Component lifecycle information is perhaps the most critical supply chain signal. A part entering end-of-life (EOL) or product change notification (PCN) status can derail a design that would otherwise have years of expected production. However, lifecycle data can be nuanced:

• Not all EOL notices have the same timeline or severity
• Manufacturers sometimes extend EOL dates for popular components
• Parts in "mature" status may still have decades of availability
• New components may carry a higher risk of early PCNs as manufacturers refine designs

The source of lifecycle information is crucial—manufacturer-provided data (available through IHS Markit, SiliconExpert, and Z2Data) is generally more reliable than distributor-based information, as manufacturers are the authoritative source on their own product lifecycles.

Data Integration Options in Altium Designer

Octopart Integration (Basic Supply Data)

Altium Designer's integration with Octopart provides essential supply chain information directly within your design environment. This integration delivers:

• Real-time pricing and stock availability from multiple distributors
• Datasheets and technical specifications
• Lead time information
• Suggested alternates
• Ready-to-use CAD models
• Automated multi-supplier cart creation via major distributors (DigiKey, Mouser, Newark, etc.)

Octopart data helps identify immediate availability issues and streamlines procurement, though its lifecycle information is distributor-based rather than from manufacturer sources, making it less reliable for long-term planning.

IHS Market Integration

For insights into component lifecycles, Altium Designer offers integration with IHS Markit data. This provides engineers with more reliable lifecycle information compared to Octopart, including:

• More accurate component lifecycle status directly from manufacturers
• Component part parameters
• Limited risk analysis based on manufacturer lifecycle
• Basic environmental compliance data (RoHS & REACH)
• Lead time information

This data becomes valuable when designing products where accurate component lifecycle status is important for planning purposes, giving engineers a more trustworthy way to anticipate parts that may need alternatives.

Advanced Integrations: SiliconExpert and Z2Data

For organizations requiring enterprise-grade component intelligence, Altium offers advanced integrations with SiliconExpert and Z2Data. These powerful data sources provide comprehensive component intelligence, including:

• Years-to-End-of-Life forecasting
• Comprehensive supply chain risk assessment
• Part change notifications (PCNs)
• Advanced alternative part suggestions for supply chain continuity
• Detailed environmental compliance data and reports (RoHS, REACH, and more)
• Comprehensive risk analysis covering lifecycle, multi-sourcing, and inventory risks
• Access to over a billion components with high data integrity

These integrations offer the most reliable foundation for creating resilient designs with minimal supply chain vulnerabilities.

Comparing Data Sources: Strengths of Each

Each data integration offers unique strengths for different aspects of component validation.

Practical Workflow: Validating Component Choices

Using Manufacturer Part Search with Integrated Data

The component selection process often begins with Manufacturer Part Search in Altium Designer. Engineers using this feature can filter components based on several important parameters:

1. "Has Model" (schematic symbol and footprint)
2. "Has Simulation" for components with simulation models
3. "RoHS Compliant" for environmental requirements
4. "In Stock" to avoid out-of-stock components
5. "REACH SVHC Compliant" for additional compliance needs

For more predictive supply chain information such as lifecycle status, multi-sourcing options, or lead time stability, engineers need to evaluate components on a case-by-case basis using the integrated data sources. This part-by-part evaluation becomes an essential step in building a resilient bill of materials, especially for designs with extended production lifecycles.

Evaluating Parts in ActiveBOM with Rich Supply Chain Metrics

Once components are selected, ActiveBOM in Altium Designer transforms a component list into a supply chain-aware bill of materials. This powerful tool provides:

• Color-coded risk indicators for each component
• Real-time pricing and availability updates
• Lifecycle status visualization
• Alternative part suggestions

Engineers can quickly identify problematic components and address issues before the PCB layout begins, significantly reducing the risk of costly redesigns.

Monitoring Supply Chain Changes

While ActiveBOM and the BOM Portal don't provide automated alerts, they do offer powerful visual indicators that highlight supply chain issues. Regular BOM reviews using these tools allow design teams to:

• Identify components that have recently entered EOL status
• Spot significant inventory reductions that might signal future availability problems
• Recognize price volatility that could impact project budgets
• Flag compliance issues before they affect certification timelines

By incorporating regular BOM reviews into your design process, teams can proactively address supply chain challenges before they impact project timelines.

Preventing Redesigns with Better Lifecycle Visibility

Consider this real-world scenario that many electronics manufacturers face: A design team selects a component based solely on technical specifications without considering lifecycle data. Later in the development process, they discover the component will soon be obsolete.

The consequences of this oversight are significant:

• Extended development time for redesign work
• Additional engineering costs for component replacement and validation
• Potential regulatory recertification
• Delayed market entry and associated opportunity costs

With integrated supply chain data in Altium Designer, teams can identify these lifecycle risks early in the design process. The return on investment for using comprehensive supply chain data is compelling—the cost of the data is typically a fraction of what a single component-related redesign would cost in terms of engineering time, delayed market entry, and lost revenue opportunities.

Next Steps for Better Part Selection

Making data-driven component decisions is no longer optional in today's volatile supply chain environment. By integrating comprehensive supply chain data into your selection process, you can:

• Reduce the risk of unexpected redesigns
• Improve a product’s reliability over its intended lifespan
• Optimize BOM costs with better visibility into pricing trends
• Accelerate time-to-market by avoiding component-related delays

As you refine your component selection process, consider these next steps:

• Evaluate which supply chain data integration best fits your product lifecycle needs
• Define clear component selection criteria that include supply chain parameters
• Create a standardized validation process for all new components
• Prepare for the prototype phase by performing final component validation checks

The most successful designs balance technical performance with supply chain resilience. 

In the next article, we'll explore how to prepare for the prototype phase with final component validation steps to ensure smooth transitions from design to first builds.