October, 2022
Independent Channel Continued from previous page The accelerated demand for chips in the
automotive sector is going to remain steady for some time, according to Thomas, due to the current backlog. This means the long- term prognosis for those manufacturing chips for automotives is positive. And while things are beginning to slowly return to nor- mal, at present, the price of hard-to-get com- ponents like chips has skyrocketed. The shortage has led to major car manu-
facturers eliminating certain features in newly made vehicles because they are unable to obtain enough chips to ensure full func- tionality. This is where having an independ- ent distribution plan comes into play. Classic Components’ sourc-
ing expertise includes knowing where to find alternate sources of component parts through sur- plus inventory, strategic rela- tionships with other franchise/ authorized distributors, and tak- ing advantage of local and over- seas markets.
Investigating Sources One mistake that some com-
panies make during the chip shortage is being duped by coun- terfeit products. It is an easy trap to fall into because the coun- terfeit items available today are impeccably made and almost im- possible to distinguish from the real thing. Classic Components retains
its competitive edge by taking a good, hard look into any compa- ny it wishes to purchase from to ensure both the company and its offerings are legitimate. “What happens when the on-
line search produces a list of company names you have never heard of, how do you know which are legitimate and which are not?” asks Thomas. “We know all the players overseas. We have conducted rigorous audits and met many of the owners. We know which companies are legit and which should not be called. That is what we do.” While it might be tempting
to purchase a chip from a compa- ny you have never heard of that says it has them in stock, Thomas advises caution. An independent distributor
can also offer supply chain man- agement along with a rigorous quality inspection process to en- sure the authenticity and quality of each component received. Classic Components, for exam- ple, utilizes a quality manage- ment system (QMS) and holds certifications such as AS9120B, a requirement for distributors serving the aviation, space, and defense industry. “When the parts arrive, we
know how to make sure they are good quality,” says Thomas. The process includes con-
ducting a detailed risk profile for the customer that takes into con-
www.us-tech.com Electronic Chip Shortage Solution: Look to
sideration the known reputation of the ven- dor, the part, and the end use of the item. In addition, the customer is surveyed as to the
requirements for age of the components (date codes), traceability back to the factory, etc. In the case of Classic Components, the company has developed a scoring system to establish the risk involved in each transaction. “The process of authentication is much
Manufacturers are considering the use of independent distributors to get parts.
more extensive for higher risk profile items to ensure the chips are legitimate and high quality,” says Thomas. “There are a lot of steps, and it is very expensive and time-con- suming but is critical when the product is a pacemaker, for example, and less so when it is a toy monkey banging cymbals.” Unfortunately, for the foreseeable fu- ture, the automotive industry is expected to
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