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From Sensors to Semiconductors: How Consumer Demand for Tech is Affecting the Automotive Parts Supply

Remember when car stereos were the most sophisticated pieces of consumer technology in cars? Technology evolved from AM radios to 8-tracks to FM, cassettes, and DVDs — and now to satellite radio, streaming services, and Alexa. And, that’s just the beginning. Cars have become increasingly technical in recent years with on-board computers, tire pressure monitoring systems, navigation systems, touchscreen displays, backup cameras, dash cams, adaptive cruise control, automatic braking systems, lane change assistance systems, vehicle-to-vehicle communication, ambient lighting, keyless entry, push-button start, automatic high beam control, and even autonomous driving.

What does all of this tech in cars have in common with each other? A reliance on electronic components, sensors, semiconductors, connectors, and other OEM parts that could become scarce or obsolete in the future.

Consumers love their cars and spend a great deal of time behind the wheel. It makes sense that comfort, safety systems, and technology have become must-have features. The demand for tech is likely to drive the market for automotive electronic components for years to come. However, parts have a limited lifecycle. As technology continues its own evolution and manufacturers phase out products, OEM parts become challenging to source, resulting in production delays and cost overruns.

It’s not unusual to overbuy EOL parts out of an abundance of caution. After all, what happens if you run out of critical parts and the manufacturer no longer makes them? For example, you may ultimately only need 1000 parts in the future but because the future is uncertain, you buy 10,000. Not only does this mean you’ve paid for 9,000 automotive electronic components you’ll never use, you must store those parts. In addition, you’ve taken 9,000 components out of the market, reducing parts availability for others and potentially driving up costs even further.

Elite Procurement & Logistics Solutions offers a better way to manage obsolete parts. Our global sourcing solutions allow you to get the obsolete automotive electronic components you need without having to scramble, suffer through long lead times, overbuy, or store excess inventory.

In short, we can get the parts you need, when you need them. Perform a dynamic inventory search now.

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