From Spreadsheets to Software: Part Analytics’ Journey to Product-Market Fit in Manufacturing
Some of the most compelling B2B software companies are built by founders who’ve lived their customers’ problems. In a recent episode of Category Visionaries, Jithendra Palasagaram revealed how his experience in electronics procurement led to creating Part Analytics.
Living the Problem
“I working at a large multinational corporation, pretty much doing the job of our prospective customers,” Jithendra explained. His role managing electronics procurement at a major medical device manufacturer gave him firsthand exposure to a persistent challenge: “Even though companies invested significant amount of dollars in different tools and technologies, like ERP systems, PLM systems, were spending a lot of time managing our data and collaborating with internal stakeholders or with our suppliers using spreadsheets and email.”
Identifying the Core Pain Point
The problem wasn’t a lack of software – enterprises had plenty. The issue was that existing solutions weren’t addressing the fundamental challenges of electronics procurement. As Jithendra observed, manufacturing companies struggled with visibility: “They don’t have any visibility to the component or part level that they procure. Most of the, sometimes the manufacturing, there’s a combination of in house manufacturing, but also outsource manufacturing. So they lose that visibility at the part level.”
Validating the Solution
Their approach was to start where existing systems stopped. “What our platform was able to do is pull in this data from the spread sources, whether it’s their internal systems or from their suppliers, from spreadsheets, and create a single platform where they can go in and see their entire spend for electronic parts or components.”
The validation came through solving specific, high-value problems:
- Cost reduction through identifying “parts like same parts that they may be procuring but paying different prices”
- Supply risk mitigation by “identifying alternate source of supply”
- Real-time inventory tracking during shortages
The Supply Chain Crisis as Catalyst
The global electronics shortage of 2021-2022 proved to be a pivotal moment. “Over the last 18 to 24 months, there was a huge shortage of electronic components in the market and everyone was chasing for parts,” Jithendra noted. Their platform became essential: “Instead of the buyers searching for one part at a time going to different distributor websites, our software was able to aggregate all of that, send them a daily alert.”
Moving Upstream in the Process
Perhaps most importantly, Part Analytics realized they needed to engage earlier in the product lifecycle. “The way we think about this is actually a mindset of going early in the design phase or shift left,” Jithendra explained. “Because for sourcing teams, supply chain teams, if they don’t get visibility and influence additions at the design phase, then it’s really hard for them to manage the supply chain.”
Measuring Success
The results validated their approach. For ITW, a Fortune 500 manufacturer, they delivered “5% cost reduction their spend, reduce their shortages by more than 70%, and help the sourcing team consolidate all of their spend one platform.”
Looking ahead, Part Analytics aims to become “that market leader in this segment around electronics supply chain management.” Their journey from identifying a pain point to achieving product-market fit offers valuable lessons for B2B founders:
- Deep domain expertise can help identify gaps that others miss
- Sometimes the solution isn’t a new tool, but a better way to connect existing ones
- External events (like supply chain crises) can accelerate product-market fit
- Moving upstream in the customer’s process can create more strategic value
For B2B founders seeking product-market fit, Part Analytics’ story demonstrates the power of solving a problem you’ve personally experienced, combined with the patience to build a comprehensive solution rather than just another tool.