The latest issue of Procurement Pro magazine contains our article “How Defence Tech Faces The Obsolescence Challenge” by Paul Dale and Tom Freeman. The piece looks at how procurement teams must balance immediate cost constraints against long-term operational demands when managing the obsolescence of critical components. Read it below or here in the online magazine.
While defence programmes endure for decades, the electronic components at their core can become obsolete in a much shorter period of time. This mismatch creates mounting pressure for procurement teams who must balance immediate cost constraints against long-term operational demands. When critical components reach end-of-life mid-programme, the fallout affects budgets, schedules and mission readiness.
When components reach end of life
Procurement professionals facing obsolescence have three options. They can source remaining stock through distributors and brokers – effective while supplies last, but this approach will often come at a premium.
Secondly, they can redesign affected systems and navigate requalification, which demands extensive testing and regulatory approval and may not fix the problem in the long term.
The third option proves most effective: planning for obsolescence before crisis strikes. Early lifecycle planning secures long-term component availability, enables favourable supplier negotiations and builds contingencies into programme schedules. Working with suppliers who maintain strong obsolescence policies becomes critical as they provide advanced discontinuation warnings and alternative sourcing strategies.
The requalification problem
Defence systems require rigorous qualification processes that turn minor component swaps into major programme headaches. Replacing a single capacitor with an identical alternative can trigger months of testing and validation.
Take an aerospace programme, for example. One obsolete timing circuit, originally worth just a few pounds, could force a delay of months or in some cases years while engineers source, test and qualify a replacement. Total costs, including programme delays, additional testing and lost production capacity, can potentially exceed £millions.
This qualification burden makes commercial components particularly risky despite attractive initial pricing.
Commercial speed versus military endurance
Commercial electronics follow market-driven cycles that prioritise rapid innovation over long-term support. These components often deliver excellent performance at competitive prices, but manufacturers typically discontinue products within three to five years.
Military-grade alternatives take a different approach.
Tom Freeman, franchise manager for VPT at Solsta, knows first-hand how committed VPT are to supporting high-reliability customers. VPT vertically integrate much of the manufacturing process, giving them full control over the supply chain for their products. This enables them to give long lifetime guarantees for continued production.
As Business Manager for Aerospace & Defence at Solsta, Paul Dale has also observed the extensive level of support that established defence suppliers like Excelitas offer their customers in the sector to avoid obsolescence issues.
Several of Solsta’s other high-reliability suppliers understand defence and aerospace programme requirements and offer specific long-term support for these programmes to maintain their longevity. These partners typically support products for ten to twenty years; they maintain detailed traceability records, comply with export regulations and provide advance notice of planned discontinuations.
If you choose the right manufacturer partners, while not eliminating the risk of being caught out by obsolescence issues, you can greatly reduce that risk.
Supply chain vulnerabilities
Modern electronics manufacturing concentrates in specific regions, creating geopolitical vulnerabilities. Taiwan dominates semiconductor production, Japan controls certain rare materials and China processes most rare earth elements. Each represents a potential choke point for defence programmes.
Recent export restrictions on dual-use technologies complicate international sourcing further. The rules around conflict minerals govern supply of critical raw materials including tantalum, cobalt and tungsten which face periodic supply constraints from mining regulations, political instability and environmental concerns.
Procurement teams must map complete supply chains, understanding not just immediate suppliers but the full pathway to raw materials. This transparency becomes essential for demonstrating export control compliance and avoiding inadvertent technology transfer. However, understanding these vulnerabilities is only the first step. Translating this knowledge into actionable procurement strategies requires a shift in how procurement professionals approach their role.
Procurement as strategic risk management
Rather than simply processing purchase orders, procurement teams must evolve into strategic risk managers who embed obsolescence planning throughout the programme lifecycle. Effective obsolescence management starts during initial design reviews, not simply when components fail. This means integrating lifecycle risk assessment into supplier evaluations, weighing long-term support commitments alongside traditional factors like price and performance.
Building relationships with specialist distributors who understand defence requirements proves particularly valuable. These partners often maintain strategic stock of critical components and provide market intelligence about impending obsolescence announcements. They can also effectively manage the regulatory complexity that adds another layer of challenge, with ITAR restrictions and potential sanctions affecting component availability across different parts of the world.
Building resilience
Several practical strategies reduce obsolescence risk without compromising programme objectives. Conducting formal lifecycle analysis during design phases identifies vulnerable components before they become critical. Securing additional stock during initial procurement provides insurance against future shortages for irreplaceable parts.
Military off-the-shelf solutions often offer better long-term viability than bespoke designs while avoiding unnecessary export control complications. Diversifying suppliers across different regions reduces concentration risk, though this must balance against managing multiple relationships.
Strong partnerships with manufacturers and specialist distributors create early warning systems for obsolescence issues, enabling proactive responses rather than reactive scrambles.
The forward view
Obsolescence challenges are inevitable in long-term defence programmes, but smart planning minimises their impact. By treating component lifecycle as a core design parameter, procurement professionals protect programme timelines, budgets and operational capability.
The most successful defence programmes integrate obsolescence planning from day one, recognising that today’s procurement decisions determine tomorrow’s sustainment costs. As systems grow more sophisticated and programme lifecycles extend, this forward-thinking approach becomes essential for mission success.
