SEMICONDUCTORS
America II hasmore than 3 billion components in stock
CounterfeIts, leAd tImes top buyers’mInds
Managers at a leading independent distributor answer the questionsmost often posed by customers
Can you explain the dangers of counterfeit products in the market andwhat your company has done protect against it?
Counterfeit components are amajor problemwithin the channel. A report* produced by the U.S. Department of Commerce in January clearly states that this problemaffects the entire supply chain. According to the report,OCMs cite that “brokers are frequently a source of counterfeit components followed by independent distributors and internet suppliers”. However the report also states that “21%of theOCMs identified authorized (franchise) distributors as having sold counterfeit parts.” It continues that “unauthorized distributors aremore diverse in their purchasing and screening activities” and have implemented stringent procurement, testing and auditing requirements into their processes. This is exactly the case at America II.We feel thatwe’re the leader in quality assurance and testing.We secure the supply chain through our strict vendor selection process and purchasing controls.Our quality processes also include import/export compliance and, of course, our quality inspection. In addition to visual inspections and x-rays, quality testing includes: de-capsulation, electrical testing, CCAP counterfeit testing, I.C. programming, solderability andmore.
Whatmakes America II different fromother independent distributors?
America II has stringent quality requirements
Unlike other independent distributors, America II is a stable 21-year- old company with strong finances and senior leadership that came fromthe franchise distribution and ICmanufacturing space. The leadership teamhas been with the company formore than 15 years and has built our inventory to current levels that exceed $1 billion in value. Also unlike other independents is our robust quality system. Our culture is built around quality, with a focus on continuous improvement.We’ve secured our supply chain with a tight program for new supplier qualification and an aggressive programfor supplier suspensions—the current suspended supplier list stands at 4,938. The linchpin of our customer confidence program is the third-party independent test facility that resides within America II’s distribution center, which has never been done before in all of distribution. This allows us to test every component thatmay be suspect
18 | September 2010
or process customer-directed test procedures onsite. Lastly, while the industry-standard warranty of parts is a single year, America II has a 10-year guarantee on all components sold. All of thismakes us different fromother independent distributors and brokers.
Howshould customers go about qualifying or certifying your company as a supplier?
While some customers send in questionnaires to conduct a virtual audit,most large customers prefer to complete a trip to our Florida facility. In fact, we prefer having an onsite audit so we can truly highlight our infrastructure, quality processes and in-house test facility.With the internet and graphic design tools available to every marketer, it’s easy tomake a small company without infrastructure look like a large company with a robust quality system. So we believe no customer should approve an independent distributor or broker without a physical audit.
Howcan you have inventorywhenmost of the supply chain, including directmanufacturers and franchised distributors, is quoting 24 to 30weeks onmany components?
America II has an inventory-centricmodel, built during the past 15 years on themanagement of excess components and asset recovery forOEMs and EMS providers. America IImanagesmore than 230 programs and carries product frommore than 1,400manufacturers. Another important component of our businessmodel is our strategy in buying inventory.Many times,wemake conscious decisions to purchase inventory above currentmarket pricewhenwe see a sudden shift in lead times. America II has the financial strength to invest millions of dollars in inventory. So duringmarket shortages,we have productwhile others are dealingwith extended lead times. Currently, America II hasmore than 3 billion parts in stock and available for sale.
What’s your outlook on themarket for the rest of 2010?
Looking ahead, America II remains very bullish with our outlook for the remainder of 2010.We expect to see product continuing to be in short supply, with lead times exceeding 24 weeks. As a company, America II is buying aggressively so we can support themarketplace for the next two quarters.
*
http://www.bis.doc.gov/defenseindustrialbaseprograms/osies/def marketresearchrpts/final_counterfeit_electronics_report.pdf
America II is an independent distributor based in St. Petersburg, Fla.
www.americaii.com
www.electronics-sourcing.com
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