The neglected challenge of obsolete parts

Since the early days of automotive manufacturing, the industry has had to deal with obsolete parts, which are the stepchildren of vehicle makers and suppliers alike. Mountains of these parts and their respective tools are aggregating at an alarming rate, tying up millions of dollars, clogging warehouses, and creating inefficiencies. Every year, an average of over 3,000 parts per car model will become obsolete.

In this article, we highlight the need for suppliers to have an effective management of obsolete parts. Active management of obsolescence is paramount, if managed well, obsolete parts don’t have to be a burden on the organization.

The neglected challenge of obsolete parts

Having a disposition/scrapping strategy will help to maximize the value of aging components