Sourcing ELECTRONICS
OnsIte AudIts: every COunterfeIter’s nemesIs
America II highlights the dangers of counterfeit components and illustrates the steps it has taken to eliminate the problem
Can you explain the dangers of counterfeit products in the market and your company’s solutions?
Counterfeit components are amajor problemin the channel. A report* produced by the US Department of Commerce in January states this problemaffects the entire supply chain. According to the report, OCM’s cite that ‘brokers are frequently a source of counterfeit components followed by independent distributors and internet suppliers’.
However the report also states that ’21 per cent of the OCM’s
identified authorised (franchise) distributors as having sold counterfeit parts’. It continues that ‘unauthorised distributors are more 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.
*
http://www.bis.doc.gov/defenseindustrialbaseprograms/osies/defm arketresearchrpts/final_counterfeit_electronics_report.pdf
Whatmakes America II different?
America II is a stable 21-year-old companywith strong finances and senior leadership that came fromthe franchise distribution and IC manufacturing space. The leadership teamhas beenwith the company for over 15 years and has built our inventory to current levels that exceed $1 billion in value.
Our culture is built around quality,with a focus on continuous
improvement.We’ve secured our supply chainwith a tight program for newsupplier qualification and an aggressive programfor supplier suspensions: the current suspended supplier list stands at 4,938.
The lynch pin of our customer confidence programis the third-
party independent test facility that resides within America II’s distribution center, which has never been done before in all of
24 | November 2010
distribution. This allows us to test every component thatmay be suspect 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.
America II manages over 230 excess component and asset recovery programs
Howshould customers qualify or certify suppliers?
While some customers send questionnaires for a virtual audit,most large customers prefer to visit our distribution facility.We prefer onsite audits so we can truly highlight our infrastructure, quality processes and in-house test facility. Using the internet and graphic design,marketing departments canmake 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 inventorywhenmanufacturers and franchise distributors are quoting up to 24weeks?
America II has an inventory-centricmodel, built over the past 15 years on themanagement of excess components and asset recovery for OEMs and CEMs. America IImanages over 230 programs and carries product fromover 1,400manufacturers.
Another important component of our businessmodel is our
strategy in buying inventory.Many times, wemake conscious decisions to purchase inventory above currentmarket price when we see a sudden shift in lead times. America II has the financial strength to investmillions of dollars in inventory. So duringmarket shortages, we have product while others are dealing with extended lead times. Currently, America II has over three billion parts in stock and available for sale.
www.americaii.com www.electronics-sourcing.eu
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