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ManageMent
www.us-tech.com
Confidently Sourcing Electronic Chips on the Open Market
By Del Williams E
lectronic chips are at the heart of virtually all sophis- ticated equipment today
from automobiles and medical equipment to consumer electron- ics like smartphones. So, when manufacturers must purchase electronic parts that are no longer available from authorized distrib- utors, are obsolete, out-of-produc- tion, or only available from over- seas sources, they often face a mo- ment of reckoning as to how much risk to assume. The challenge is that most
manufacturers rely almost exclu- sively on chips sourced from au- thorized distributors and so are un- prepared — even out of their depth — when these components must be purchased on the open market. Purchasing agents often
search the internet for electronic component suppliers, many of whom are located overseas. How- ever, it is important to navigate this market cautiously, as it can be filled with risks. Inexperienced purchasers may unknowingly en- gage with unfamiliar or disrep- utable sources. For many companies this in-
troduces a level of risk that, at a minimum, makes them uncom- fortable. For others, it is simply unacceptable. “Sourcing electronic chips on-
line without knowing who you are buying from is as naive as trying to buy a genuine Rolex watch in a back alley,” says Mike Thomas, president and global general man- ager at Classic Components, a pre- mier independent distributor
based in Torrance, California. “I have heard of suppliers disappear- ing after the manufacturer wires over the money [without delivering the parts], and some purchase bad parts they ultimately cannot use.” Manufacturers who prioritize
risk management can greatly ben- efit from collaborating with an in- dependent distributor. By doing so, they can safeguard their pro- duction and reputation through the acquisition of dependable sup- plies of high-quality chips. The initial step involves con-
ducting a comprehensive survey with the manufacturer to gain a thorough comprehension of their unique specifications, which in- clude chip age and the ability to trace it back to the factory. Subse- quently, all potential suppliers undergo meticulous assessment, taking into careful consideration the reputation of their parts with- in the industry. Manufacturers can then pro-
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ceed with confidence, knowing that the parts are of high quality. The risk mitigation and quality assurance steps are meticulously documented, including detailed photographs and measurements. As a result of this comprehensive process, independent distributors frequently offer long-term war- ranties on these parts.
Protection from Risks According to Thomas, the
mantra in his industry to elimi- nate risk is “know your source.” Over decades, independent dis- tributors have developed a very sophisticated method of identify- ing and eliminating risk. To achieve this goal, industry-leading independent distributors such as Classic Components make sub- stantial investments in managing global supply networks, evaluat- ing and prioritizing suppliers, es- tablishing preferred supplier rela- tionships, implementing efficient Quality Management Systems (QMS), and procuring state-of- the-art inspection equipment. The process begins with ven-
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dor qualification and management to ensure the independent distrib- utor is collaborating solely with a reliable and approved supplier. A tiered Supplier Selection and Ap- proval System is used to assess vendors against rigorous stan- dards. Each supplier is catego- rized, thoroughly documented, regularly reviewed, and subject to tier-reclassification based on events and patterns observed by
Classic Components or reported by third-party sources. Classic Components also
takes advantage of its regional re- lationships across the globe, whether through local distribu- tors, manufacturing partners with excess inventory, or authorized distributors. Compliance verification, which
includes visual inspection, testing, and physical analysis of parts, serves as an additional layer of pro- tection. Only parts that have under- gone rigorous QA control, in accor- dance with internal controls and es- tablished international quality standards are shipped.
Inspection As part of routine quality
checkpoints, technicians conduct inspections of external packaging. During these inspections, they carefully examine the packaging for various elements, such as orig- inal and sealed packaging, correct labeling, proper QC markings, ac- curate lot codes, consistent colors and fonts, and potential barcode discrepancies. During the inspection pro -
cess, technicians carefully exam- ine the internal packaging for var- ious authenticating elements. These include but are not limited to the appropriate logo, labels, bar code, as well as desiccant, dry pack, moisture barrier bags, and vacuum sealed antistatic bags. The chip is scrutinized as
well. This includes inspection for physical arrangement in packag- ing, surface-mount packaging damage, pin orientation, copla- narity, surface scratches, cut or bent leads, lead blemishes, discol- oration, rust, tarnish, evidence of remarking, lot codes and country of origin, as well as evidence of sandblasting or blacktopping. “To ensure the legitimacy
and high quality of chips, the au- thentication process is consider- ably more comprehensive for items with higher risk profiles,” says Thomas. When manufactur- ers have an urgent need for qual- ity chips but cannot easily ac- quire them or risk substandard electronic components, working with an experienced independent distributor that will fully miti- gate the risk is a safe, cost-effec-
tive option. Contact: Classic Components,
Corp., 23605 Telo Avenue, Tor- rance, CA 90505 % 310-539-5500 E-mail:
info@class-ic.com Web:
www.class-ic.com r
March, 2024
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