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supply chain Articles

In-depth analysis tagged supply chain — covering PLM history, vendor strategy, and the technical decisions reshaping engineering software.

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Key Concepts

Approved Vendor List

An approved vendor list (AVL), or approved manufacturer list, is the controlled record in PLM of which suppliers and manufacturer part numbers are qualified to supply each internal part at each revision. It is the part-level foundation of supply chain traceability and the trigger point for supplier change notification.

Component Risk Management

The process of evaluating and mitigating risks associated with specific components in a product BOM — including single-source exposure, geographic concentration, end-of-life status, regulatory compliance, and lead time volatility.

Digital Thread

The digital thread is the connected data backbone that links all lifecycle phases of a product—requirements, design, simulation, manufacturing, quality, and service—so that data flows coherently from engineering intent through to field performance and back. A complete digital thread enables traceability in both directions: forward (from requirements to as-built product) and backward (from field failure to specific design decision and part revision). The digital thread is the primary argument for integrated PLM suites over best-of-breed architectures.

Engineering Change Order

An Engineering Change Order is the formal, audited record of an approved change to a product design. In PDM, changes are informal — just new file revisions. In PLM, ECOs follow a three-stage governed flow: Engineering Change Request (the problem), Engineering Change Notice (the proposed solution with impact analysis), and finally the ECO (authorization to implement with effectivity dates and affected serial numbers). ECOs create an auditable trail required by regulated industries and supply-chain accountability.

Lot Traceability

Lot traceability is the ability to identify every unit manufactured from a specific batch (lot) of raw material or purchased components, and conversely to identify the lot behind any component in a unit. It is captured at the point of manufacture, typically in MES, by recording lot consumption as each unit passes each operation.