The Part Analytics Guide to Category Creation: Redefining Electronics Supply Chain Software
Most enterprise software companies try to fit into established categories like procure-to-pay or source-to-pay. In a recent episode of Category Visionaries, Jithendra Palasagaram from Part Analytics revealed why they chose to create an entirely new category instead.
The Problem with Traditional Categories
The existing procurement software landscape had a fundamental flaw. “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,” Jithendra explained.
Moving Upstream
Rather than building another procurement tool, Part Analytics identified a critical gap: the disconnect between design and sourcing. “The way we think about this is actually a mindset of going early in the design phase or shift left,” Jithendra shared. “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.”
Creating the Design-to-Procure Category
This insight led to a new category positioning. “The traditional way of thinking about this is procure to pay systems or p to p, or if you take a step above that source to pay or s to p systems,” Jithendra noted. “But the way we think about this is different from a traditional source to procure or procure to pay platforms. We are actually going upstream in the process.”
Proving the Concept
The value of this approach became clear during implementation at ITW, a Fortune 500 manufacturer. Their platform 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.”
The global electronics shortage further validated their category creation. “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 recalled. Their upstream approach meant customers could anticipate and prevent supply chain issues before they became critical.
Building Market Understanding
Instead of competing with established vendors, Part Analytics focused on educating the market about this new approach. “Me and the Co-Founder Jessel, we both have experience in the space,” Jithendra explained. “Just sharing in terms of our knowledge, our experience in the space with our audience is a great way for us to kind of get in front of the right decision makers.”
Target Market Evolution
Their category resonated with both original equipment manufacturers (OEMs) and contract manufacturers (EMS companies). “We serve both segments the market, and we’ve been fortunate to actually add several Fortune 500 companies as customers, as well as some medium sized companies as well,” Jithendra shared.
The Vision Forward
Looking ahead, Part Analytics aims to become “this connective tissue and helping both product OEMs and contact manufacturing companies to collaborate and get the necessary insights to really innovate faster in terms of their product development.”
For B2B founders considering category creation, Part Analytics’ journey offers several key insights:
- Look for gaps between existing software categories
- Identify upstream problems that affect downstream processes
- Use domain expertise to educate the market
- Focus on solving fundamental problems rather than adding features
- Build bridges between traditionally siloed departments
Their story shows that in B2B software, sometimes the biggest opportunity isn’t in building a better version of existing solutions, but in redefining how organizations approach the problem entirely. By creating the design-to-procure category, Part Analytics isn’t just competing in the market – they’re reshaping how manufacturing companies think about their supply chain processes.