Sourcing ELECTRONICS S
counterfeitingunder themicroscoPe
Placing
Counterfeiting is a severe and ongoing issue in the electronics industry. Marketing director at America II Electronics, AntonWurr, examines the source and the solution
In today’s electronic components industry, counterfeiting is a severe problemand what’smore, it’s progressively getting worse. The falsemanufacture and distribution of counterfeit semiconductors has a grave effect on respectable component manufacturers and distributors, in addition to the obvious effects it has on the customer.
Counterfeiting seems to be an even greater issue during a
market shortage, like we’re seeing now. Typically, high-priced parts are targeted by counterfeiters. During shortages, however, when commodity items are in high demand, counterfeit components can be prevalent due to the highmarket price of any manufacturer’s authentic parts. In addition, counterfeiters are also targeting obsolete and discontinued parts.
According to a report published by the US Department of
Commerce earlier this year, incidents of counterfeiting rose 142 per cent from2005 to 2008.Many believe thatmainly independent distributors and brokers are to blame for this drastic increase as they supply parts fromthe openmarket. It ismisleading however, to point the finger at just those two areas. In fact, generalising the source of the problemis anothermajor issue, since it damages the reputation of large reputable independent distributors and unnecessarilymakes customers doubt the entire space.
The government report found that 21 per cent of original
componentmanufacturers (OCM) affected by counterfeit parts identified authorised distributors as having sold the components. This is due to the fact that some authorised distributors buy back excess inventory fromOEMs and contractmanufacturers,without the incoming inspection processes common in large independent distributors. The report goes on to state that 51 per cent of authorised distributors restock or re-circulate returns and buy backs, while only a small number admitted to a quality screening before the parts are redistributed. For themost part,many authorised distributors simply inspect the box label for date code, part number and quantity. It is also common for authorised distributors to purchase parts outside the OCMsupply chain to satisfy an important customer’s requirements. So the negative effects of counterfeit components can be felt throughout the channel.
What does all thismean to the customer? Counterfeiting is not
confined to one part of the channel—it is an industry-wide issue. In all parts of the supply chain, buyers need to seek out
companies that have core values based around innovation and continuous improvement. In today’s consolidated distribution environment, the customer needs independent distribution. They should therefore develop a relationship with a few trusted distributors and vet their quality practices.
At America II Electronics, the belief is that the companymust
control the supplier base on the front end with amajor emphasis on reducing the number of openmarket suppliers used. These supplier control standards, in addition tomature excess inventory programs, provide a large secure inventory available for immediate shipment. Its inspection incorporates an array of testing, including x-ray, de-capsulation, solvency and permanency tests and micrometers, along with high powermicroscopes and digital cameras to ensure only authentic product is delivered.
America II is also CCAP certified in counterfeit avoidance and
detection and amember of IDEA, a resource for independent distributors to find relevant information addressing advanced quality, ethics and customer satisfaction. Customers should inquire about quality efforts such as these and take advantage of opportunities to tour and audit their distributor’s facilities to see these practices first hand.
www.americaii.com
Reputable independent distributors undertake stringent inspection on incoming stock
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