Procurement Terms



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Obsolescence is the state of being outdated or no longer functional due to technological, economic, or social changes. It is a condition that occurs when a product, service, or technology is no longer relevant or desirable in the marketplace.

Obsolescence can occur due to a variety of reasons, such as the introduction of new technology, changes in consumer preferences, or changes in regulations or standards. For example, a product may become obsolete when a newer, more advanced version is introduced or when a similar product is developed that is more efficient or cost-effective.

Obsolescence can be planned or unplanned. Planned obsolescence refers to intentionally designing products with a limited lifespan to encourage consumers to replace them with newer models. Unplanned obsolescence, on the other hand, occurs when a product becomes obsolete due to factors outside of the manufacturer's control.

The impact of obsolescence can be significant, particularly for companies that rely heavily on technology or innovation. Companies that fail to anticipate and adapt to changes in the marketplace may find themselves at a competitive disadvantage or risk becoming obsolete. As a result, it is essential for businesses to stay abreast of technological, economic, and social trends and to continually innovate to stay relevant and competitive.

Category Management Supplier Management