In many companies, engineering and procurement operate in separate silos, leading to miscommunication, delays, and costly mistakes. Engineering teams design products, select materials, and define specifications, while procurement is responsible for sourcing and ordering those components. But what happens when these two teams aren’t aligned?

The result is often incorrect orders, production delays, unexpected costs, and supplier confusion. If your purchasing team doesn’t have access to the latest engineering data—or if they’re working from outdated spreadsheets—there’s a high chance that incorrect parts will be ordered, leading to rework, waste, and lost time.

To ensure a smooth transition from product development to production, your engineering data must be directly connected to your purchasing process. This integration eliminates errors, speeds up procurement, and keeps production on schedule. In this blog, we’ll explore the three key reasons why engineering and procurement should work in sync and how connecting these processes can transform your operations.

Eliminate Errors from Outdated or Incomplete Data

One of the biggest risks in the purchasing process is ordering parts based on outdated or incomplete information. When engineering teams make design updates—such as changing a material specification, modifying a part number, or updating a supplier—the purchasing team must be immediately aware of these changes. Otherwise, they may unknowingly place orders for incorrect or obsolete components, leading to costly mistakes and delays.

Disconnected systems, reliance on spreadsheets, and manual data entry only make this problem worse. If procurement is working from an outdated Bill of Materials (BOM) or a static file that doesn’t reflect recent engineering changes, they might order parts that no longer fit the design. This can result in expensive rework, wasted inventory, and production slowdowns.

By integrating engineering data with purchasing, every stakeholder has access to real-time information. Purchasing teams can confidently place orders knowing that they are aligned with the latest engineering specifications. This ensures that the right components arrive at the right time, reducing waste, avoiding costly redesigns, and keeping production on track.

Reduce Lead Times and Ensure On-Time Production

In manufacturing, timing is everything. If the right parts don’t arrive when they’re needed, production grinds to a halt, leading to costly delays and missed deadlines. One of the main reasons for these disruptions is the disconnect between engineering and procurement—when purchasing teams lack visibility into upcoming material requirements, they can’t plan ahead effectively.

By integrating engineering data with purchasing, procurement teams gain real-time insight into what components are needed and when. This early visibility allows them to identify long lead-time items, source alternatives if necessary, and coordinate with suppliers to prevent bottlenecks.

Additionally, when purchasing decisions are made without direct input from engineering data, there’s a risk of sourcing components that aren’t readily available or that require last-minute substitutions. This can result in costly expedited shipping fees or even production redesigns to accommodate different parts.

A connected workflow ensures that procurement has immediate access to up-to-date engineering specifications and BOMs, allowing them to make informed purchasing decisions well in advance. The result? Shorter lead times, fewer last-minute scrambles, and a smoother, more predictable production schedule.

Control Costs and Avoid Last-Minute Purchases

Without a direct connection between engineering and purchasing, cost control becomes a challenge. When procurement teams are forced to react to last-minute changes or unexpected part shortages, they often have to place rush orders, pay for expedited shipping, or purchase from higher-cost suppliers just to keep production moving. These unexpected expenses add up quickly and can significantly impact profitability.

A disconnected workflow also increases the risk of overordering or purchasing incorrect parts. If outdated engineering data leads to an incorrect order, procurement may need to repurchase the right components while absorbing the cost of unusable inventory. Additionally, engineering teams might unknowingly specify expensive or hard-to-source materials without procurement’s insight, further driving up costs.

By integrating engineering data with purchasing, companies can proactively manage costs by:

• Ensuring accurate part specifications are used for sourcing.
• Identifying cost-effective suppliers before placing orders.
• Avoiding last-minute rush orders and excess inventory.

With a connected system, procurement can plan ahead, negotiate better pricing, and reduce unnecessary spending—ensuring that production stays on track without breaking the budget.

Conclusion

Bridging the gap between engineering and purchasing is critical for efficient, cost-effective manufacturing. By integrating engineering data with the purchasing process, companies can eliminate errors, reduce lead times, control costs, improve supplier collaboration, and enhance traceability.

A connected workflow ensures that purchasing teams always have access to the latest part specifications, allowing them to make informed decisions and keep production on schedule. It also helps organizations avoid unnecessary expenses and streamline the transition from product development to manufacturing.

If you’re still relying on spreadsheets or disconnected systems to manage your purchasing process, now is the time to rethink your approach. With the right tools, such as OpenBOM, you can seamlessly link your engineering and procurement workflows, ensuring a smoother, more reliable production process.

By: Jared Haw