COMMENT


Unlocking the potential of the secondary market


Rose McGee, sales director at Component Sense, says some procurement professionals will not consider sourcing electronic components from the secondary market (sometimes called the grey market) due to perceived risks regarding counterfeit parts.


T


his fear may be warranted, as fraudulent sellers do exist. However, with a few simple precautions, buyers can unlock the value and  In the case of sellers like Component Sense, we only sell untouched, pristine, and tested excess and obsolete (E&O) stock. This inventory is simply surplus to the requirements of reputable and trusted OEMs     secondary market.


Reducing procurement costs One key reason many turn to the secondary   components are often available at discounted prices compared to franchised channels. Component Sense only sources the parts we sell from tier one OEMs and EMSs. We take   buyers who source from us. Unlike direct channels, components available on the secondary market may not  are motivated to reduce electronic waste (e-waste) and free up warehouse space,       data and current market conditions to seek out opportunities and alternatives.


Navigating obsolescence Component obsolescence is a risk never   unpredictably can lead to expensive  While the secondary market cannot solve  overall, it can often provide solutions to


10 JUNE 2025 | ELECTRONICS FOR ENGINEERS


potential costly problems. End-of-life (EOL)   here. Otherwise, suitable alternatives may also be available.


      industrial machinery can be repaired instead 


Minimising e-waste


 solid waste streams in the world, and the     While not supported by some franchised distributors or chip makers, one crucial purpose of the secondary component market  parts. Many electronic manufacturers discard and scrap their E&O inventory. However, the secondary market provides an outlet for this stock to promote a circular economy. This


extends the lifetime value of the valuable  inside. This is why we at Component Sense  


Safely utilise the secondary market  sustainable, make secondary market procurement worth the investment of time. Luckily, there are ways buyers can easily protect their supply chains from counterfeits.  market suppliers that can demonstrate the  •


 manufacturer, with documented proof;


• Comprehensive quality inspection for every part sold;


• • •


 humidity control and MSL-compliant 


 


 


 safe to unlock the potential of the secondary electronic component market.


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