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Spare Parts & Obsolescence

Supply shortage

In brief

A supply shortage exists when a material is not available in the required quantity or by the required date, putting supply at risk.

Contents
  1. What is Supply shortage?
  2. In practice: maintenance and procurement
  3. Frequently asked questions
  4. Related terms
  5. Further reading

What is Supply shortage?

A supply shortage is said to exist when demand for a part exceeds the available supply or delivery commitments cannot be met. It can affect a single component, an entire category or a raw material. Unlike a product discontinuation, the product is still being manufactured; it is only temporarily scarce.

Causes include capacity limits at manufacturers, failures of upstream suppliers, raw material scarcity, sudden surges in demand, quality problems, political events or trade restrictions. A shortage is often recognisable from extended lead times, quotas imposed by the manufacturer (allocation), rising prices or postponed delivery dates. A shortage frequently affects several buyers at the same time, so that alternatives also quickly become scarce.

For maintenance, a supply shortage is particularly critical if it affects a spare part without which a plant cannot continue running. Preventive measures include a deliberately sized safety stock for critical parts, approved second sources, framework agreements with call-off quantities and regular review of replenishment lead times. In acute cases, alternative parts, searching additional supply channels and repairing the defective part can help.

In practice: maintenance and procurement

When making enquiries during a shortage, the manufacturer part number, required quantity, latest required date and permissible alternatives should be clearly stated. Indicating early on whether partial quantities or equivalent parts from other manufacturers are acceptable considerably widens the search.

Synonyms and abbreviations: supply bottleneck · material shortage · component shortage · supply constraint

Frequently asked questions

What should be done in the event of a supply shortage of spare parts?

First, it is clarified how long the existing stock will last and which plants are affected. Options can then be examined: approved alternative parts or second sources, additional authorised supply channels, transfers from other sites or repair of the defective part. Parts from unknown sources should be checked for authenticity and condition before installation.

What is the difference between a supply shortage and a product discontinuation?

In a supply shortage, a product is still being manufactured but is temporarily not available in sufficient quantity or not in time. In a product discontinuation, the manufacturer permanently stops production. A shortage is therefore usually a timing problem, whereas a discontinuation requires a long-term solution such as a last time buy or a successor part.

How can supply shortages be prevented?

Helpful measures are classifying parts by criticality, adequate safety stocks for critical items, qualified second sources, framework agreements with call-off quantities and ongoing monitoring of lead times and manufacturer notices. Reporting requirements to suppliers early also improves the chance of being given consideration when goods are scarce.

Further reading