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BOM Intelligence: solving the

challenges of the electronic


component supply chain
The problem The solution
Procurement experts, compliance The BOM Intelligence platform helps
managers, and component engineers compliance managers and engineers
are facing a perfect storm of challenges solve the myriad challenges inherent in
with the electronic component supply the electronic component supply chain.
chain. Compliance requirements are BOM Intelligence provides insights that
becoming more strict, counterfeit parts enable companies to increase the pace of
are pervading the market, consolidation new product introductions, avoid costly
among parts manufacturers and production interruptions, and improve
technological innovations are increasing sustainability over extended service lives.
the risk of availability and contributing
to obsolescence, and parts lifecycles are
becoming shorter.
Risks in the electronic components supply chain

Parts marketplace risks Poor risk management IHS Markit BOM Intelligence Find out more

Risks in the electronic


components supply chain
Risks in the electronic component supply chain have grown substantially
over the past five years as procurement and regulatory pressures have grown.
Companies and component managers must deal with component obsolescence
and manage regulatory compliance guidelines such as RoHS (Restriction of
Hazardous Substances) and REACH (Registration, Evaluation, Authorisation,
and Restriction of Chemicals). It’s also critical for companies and component
managers to follow guidelines related to conflict minerals and country-specific
export regulations.

Supply chain distributions have become more acute and difficult


to manage over the past several years as well. Component supply chain
challenges are becoming more prevalent due to shrinking lifecycles and
increased merger and acquisition activity among suppliers. New chip
technologies such as more SOC (system on chip) devices with embedded
functionality and communication capability have added hacking risks in addition
to the traditional risks of procuring counterfeit or substandard components.

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Risks in the electronic components supply chain

Parts marketplace risks Poor risk management IHS Markit BOM Intelligence Find out more

COMPONENT OBSOLESCENCE COUNTERFEIT PARTS


Technological advancements and poor Counterfeit parts result in
component management can lead to
part obsolescence and shorter product $75 billion in annual lost
lifecycles. The average electronic revenues for the semiconductor industry.
component lifecycle is now less than 10 years. If component managers are unprepared for regulatory
IHS Markit issues 15 EOL (end-of-life) notices pressures or product obsolescence, they may have to
scramble for replacement parts that are non-compliant
and 38 semiconductor PCNs (product change or counterfeit. “End-of-life,” “Not Recommended for New
notifications) per day, on average. Design,” and “Discontinued” parts make up more than 70%
of counterfeit reports.

NON-COMPLIANT COMPONENTS SUSTAINABILITY CONCERNS


Regulatory pressures are significant. Responsible supply chain management helps
Component managers must comply with laws improve both the bottom line and the
such as REACH and RoHS, follow global export environment. As more corporations strive to
regulations, and avoid using conflict minerals. REACH is set positive examples in the community and
the most complex piece of law in EU history, and it’s also show greater environmental responsibility,
the strictest code on regulating chemical substances. expectations for sustainable products have increased.
Many countries have adopted their own version of RoHS or Manufacturers, particularly those in Europe,
REACH, and procurement professionals are challenged with
understanding country-specific compliance legislation.
are under greater pressure to produce
recyclable components.
Previous
Risks in the electronic components supply chain

Parts marketplace risks Poor risk management IHS Markit BOM Intelligence Find out more

The costs of poor


risk management
SUPPLY CHAIN BREAKDOWN
Whether from increasing regulatory pressures, non-compliant parts, or
consolidation among manufacturers, finding the specific part you need
has become more difficult than ever. If not properly managed, a single core
component can disrupt the entire product supply chain.

COSTLY PRODUCT REPLACEMENTS


Components are increasingly complex yet have shorter lifecycles. It is
essential that component parts have a lifecycle consistent with the product’s
production lifecycle in order to avoid costly redesigns and shipping delays. A
product delay of even a few months can cost market share, disrupt product
revenue goals, and render a product vulnerable to the competition.

Continued
Risks in the electronic components supply chain

Parts marketplace risks Poor risk management IHS Markit BOM Intelligence Find out more

SAFETY AND SECURITY CONCERNS


Understanding the full materials disclosure and the chemical composition
of each design component ensures compliance with new or updated
regulations, while also decreasing safety and security risks for the consumer
and supply chain partners. Data security is often rooted in component
security, and proper vetting of the full BOM (bill of materials) is essential.
If parts are non-compliant with RoHS or REACH regulations, company
employees or consumers may come into contact with harmful substances.

BRAND DAMAGE
Brand perception is critical. Consumers and supply chain partners are
increasingly aware of a company’s community outreach, environmental
responsibility, and ethical business practices. If component managers use
non-compliant or counterfeit parts or face part obsolescence, tremendous
product repair or replacement costs can be incurred and brand equity can be
irreparably damaged.

Previous
Risks in the electronic components supply chain

Parts marketplace risks Poor risk management IHS Markit BOM Intelligence Find out more

The solution:
BOM Intelligence
BOM Intelligence is the most user-friendly and intuitive bill of materials
analysis platform in the industry. BOM Intelligence helps proactively
manage component obsolescence, compliance, and extended supply
chains. In addition, BOM Intelligence helps eliminate redundancy, Risk Score definitions
avoid excess inventories and component shortages, and reduce the
risks of using counterfeit parts.

Distributor listings

Multi-level BOM tree support


Continued
Risks in the electronic components supply chain

Parts marketplace risks Poor risk management IHS Markit BOM Intelligence Find out more

BOM Intelligence allows a wide range of users, from novice to


expert, to easily find critical parts data and information required to:

‒‒ Proactively manage component obsolescence and compliance


‒‒ Avoid shortfalls of critical components to meet production
and revenue goals
‒‒ Avoid supply chain constraints with drop-in component
replacement parts
‒‒ Build compliant products in markets with environmental FFF drop-in replacements (alternates)
compliance regulations
‒‒ Identify at-risk components and technology throughout
the entire product lifecycle
‒‒ Manage authorized distribution supply chains and mitigate
counterfeit part risks
‒‒ Identify technology advances that can affect designs and
parts obsolescence
‒‒ Realize opportunities to procure less costly parts and Authorized distributors

improve margins

Previous Continued
Risks in the electronic components supply chain

Parts marketplace risks Poor risk management IHS Markit BOM Intelligence Find out more

ACCESS TO THE WORLD’S


LARGEST PARTS DATABASE
BOM Intelligence provides access to the IHS Markit Parts
Database, the world’s largest component database with
attribute data and documentation for
over 500 million electronic, interconnect,
electromechanical, and fastener parts,
from more than 4,500 manufacturers.
BOM Intelligence users can quickly compare parts side-by-side to
enhance technical decisions, as well as allocate design and sourcing
resources from within the BOM Intelligence interface.

Industry’s most comprehensive component database

Side-by-side part comparison


Previous Continued
Risks in the electronic components supply chain

Parts marketplace risks Poor risk management IHS Markit BOM Intelligence Find out more

AUTOMATE CRITICAL PROCESSES


‒‒ Organize, manage, and analyze BOMs in a single,
secure environment
‒‒ Load data easily using a one-step BOM import
‒‒ Simplify the part number and manufacturer cleansing
process, including part number auto-matching
‒‒ Build a knowledge base of reconciled supplier
and part exceptions
‒‒ Track new, reviewed, and under-investigation alerts
One-step BOM import
‒‒ Summarize exceptions and obsolescence impacts
‒‒ Access both current and historical part information,
including data sheets, application notes, product
notices, environmental documents, technical
attributes, and manufacturer part cross-references

Auto-matching/import options

Previous Continued
Risks in the electronic components supply chain

Parts marketplace risks Poor risk management IHS Markit BOM Intelligence Find out more

IDENTIFY POTENTIAL IMPACTS EARLIER


‒‒ Receive daily updates for component status and time-critical
data such as EOL and PCN, GIDEP (Government-Industry Data
Exchange Program) alerts, and counterfeit notices regarding
substandard and high-risk parts
Alert listing
‒‒ Quickly view and compare lifecycle, environmental, and supply
chain risk scores based on part status, years to end-of-life
forecasts, number of active suppliers, part availability, and
RoHS/REACH compliance
‒‒ Determine the presence of hazardous substances from the
REACH SVHC (substance of very high concern) lists and RoHS3
through manufacturer FMD (full material disclosure) data
‒‒ View reports based on part number, technical characteristic,
alert notice, or manufacturer PCN/EOL document Counterfeit alert document

‒‒ Generate 2/4/8-year forecasts at both the assembly level and


part level

REACH document FMD document

Previous
Risks in the electronic components supply chain

Parts marketplace risks Poor risk management IHS Markit BOM Intelligence Find out more

How do you manage your BOM?


Technological advances are revolutionizing the electronic component
parts industry. IHS Markit’s BOM Intelligence is the most user-friendly
and robust bill of materials platform in the industry and can help
businesses eliminate redundancies, avoid excess inventories and
component shortages, and reduce the risks of using counterfeit parts.

Get started today.


Contact an expert to schedule a personalized BOM Intelligence demo.

@IHS4Tech

About IHS Markit


The Technology Group at IHS Markit is the leading source of information, insight and
analytics in critical areas that shape today’s technology ecosystem—from materials and
components, to devices and equipment, to end markets and consumers. Businesses
and governments in more than 150 countries around the globe rely on the deep market
insight and expert independent analysis of our 300+ industry analysts in technology
sectors spanning IT, telecom, media, industrial, automotive, electronics, solar and more.
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