The Story of Part Analytics: Building the Future of Electronics Supply Chain Management

Sometimes the best startups come from founders solving problems they’ve lived themselves. In a recent episode of Category Visionaries, Jithendra Palasagaram, founder and CEO of Part Analytics, shared how his experience in electronics procurement led to building a platform that’s transforming how manufacturing companies handle their supply chains.

From Spreadsheets to Software

The genesis of Part Analytics came from a familiar scene in corporate America: skilled professionals spending countless hours wrestling with spreadsheets. “I was in their state managing electronics commodity, a large medical device manufacturer,” Jithendra recalled. “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.”

While pursuing his MBA at the University of Chicago, Jithendra saw an opportunity to solve this problem. But building a B2B software company in the Midwest came with its own challenges.

The Funding Journey

Unlike coastal startups that often have ready access to venture capital, Part Analytics had to chart a different course. “We were based in the midwest, we’re not based in coastal region,” Jithendra explained. “Really kind of finding the right fit from investor standpoint and making sure they understood what we are going after. It took some time.”

The breakthrough came from an unexpected source. “You never know where your first check might come from,” Jithendra shared. Through a connection at a demo day, they met an investor who wasn’t even able to invest – but who introduced them to someone who could.

Proving the Model

The company’s approach quickly gained traction with major manufacturers. Take ITW, a Fortune 500 company struggling with component-level visibility across their supply chain. Part Analytics helped them achieve “5% cost reduction their spend, reduce their shortages by more than 70%, and help the sourcing team consolidate all of their spend one platform.”

During the global electronics shortage of 2021-2022, the platform proved especially valuable. “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, so if their part shows up at a distributor, they get immediate alert on that so they can go and secure the part.”

Creating a New Category

Rather than fitting into existing software categories, Part Analytics carved out their own space. “The way we think about this is actually a mindset of going early in the design phase or shift left,” Jithendra explained. This positioning as a design-to-procure platform differentiated them from traditional procurement solutions.

Looking to the Future

The vision for Part Analytics extends far beyond just solving today’s procurement challenges. “Our focus is probably on the electronics value chain, electronics supply chain, and really being 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,” Jithendra shared.

The goal is ambitious but clear: to become “that market leader in this segment around electronics supply chain management.” With manufacturing companies increasingly recognizing the strategic importance of supply chain visibility and optimization, Part Analytics is well-positioned to shape the future of how electronic components are designed, sourced, and procured.

Looking back, Jithendra’s only regret is not moving faster. “Probably I would have done it even faster and sooner… when you have something, you really need to go at it with full speed.” It’s a reminder that when you’re solving a real problem with a compelling solution, the biggest risk might be not being bold enough.