Independent Distribution
weeks and inventory levels are higher than last year. The only area where we see some difficulty delivering is passive and interconnect areas.”
"I thinkwewill have a big second half and I think itwill surprise everyone and therewill bemore shortages," said Andrea Klein,CEOof Rand Technology
CEO of
independent distributor Rand
Technology, Andrea Klein, added: “This year there is a funny market dynamic occurring. There are optimistic customers who expect business will be strong and conservative suppliers, who are not sure business will be robust and are cautious about adding capacity. This could blow up in the second half of the year. I think we will have a big second half and I think it will surprise everyone and there will be more shortages.”
Klein said: “Longer term, there will be more opportunity
for Rand and other distributors to grow business by partnering with OEMs and becoming more integral to
them.Many OEMs have downsized to the point where they lack critical capabilities, including sourcing. This can be an opportunity for independent distributors that have the right services.”
Besides helping independent distributorswinmore
business, partneringwith OEMsmay have another benefit for independents. It could help themease the fears of OEMs concerning counterfeit or substandard parts.
Authorised distributors and the Electronics
Component Industry Association (ECIA), formerly the National Electronics Distributors Association, said OEMs and electronics manufacturing services (EMS) providers should only buy parts from component manufacturers or authorised distributors. It is the only way to guarantee that counterfeit parts don't get into the supply chain, they say.
However, the Independent Distributors of
Electronics Association (IDEA) said there are many reputable, reliable independent distributors that have rigorous quality, screening and component inspection processes in place to prevent counterfeit and substandard parts from getting into the supply chain.While there are some unscrupulous component brokers who knowingly sell counterfeit or substandard parts, it is unfair to paint all independent
28 | April 2011
distributors with the same broad brush, says IDEA. General manager of IDEA, Debra Eggeman, said: “IDEA's 35
members recognise that counterfeit parts continue to be an issue for the industry. IDEA has developed its 1010 standard for inspection of parts and members have adopted those standards. Many members have also invested in test equipment to determine if a part is genuine, counterfeit or substandard.
“Many OEMs and EMS providers will require an independent
distributor to be amember of IDEA and to use the 1010 inspection standard and pass IDEA's ICE-3000 parts inspection test.”
Buying from reputable independent distributors, of course, is
a major concern for buyers at OEMs and EMS providers. During last year's shortage, many buyers from different companies communicated with each other about which
independent distributors were reliable and performed well.
Dufoe said: “That
"A lot of buyers have been burnedwith counterfeit parts and they don'twant to get burned again, said Paul Romano, chief operating officer at Fusion Trade
was unique. OEMS are communicating with each other more. Purchasing and quality people are asking their colleagues at other OEMs who do you use for independent distributors.”
Romano added: “Communication among
OEMs is part of a trend to ‘vet their vendor base’ and improve the level of their management of their independent distributors. In the past, everyone kept to themselves. Now there is a lot more communication.”
Magee said: “To assure buyers
that America II sells only genuine parts, America II offers a 10-year warranty on parts. Warranties from authorised distributors and component manufacturers are usually one year. It doesn't matter if it
comes from our stock or if we have secured the part from
another source.We are confident in our supply chain and provide a 10-year warranty. It's been in place for over a year and we have not had a claim nor do we expect to.”
www.electronics-sourcing.co.uk
"We have to have the ability to inspect the part, to make sure the part has not been altered," saidChuck Magee, executive vice president of America II
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