Electronic Component Distribution and Supply Chain Integrity Challenges
The electronic component supply chain faces serious challenges. We are in the midst of a shrinking world economy, there is an increasing trend for small and mid-size OEMs1 to outsource their component needs, and the proliferation of counterfeit electronic components in the supply chain has reached record levels. As a result, many manufacturers and their distributors have focused upon lobbying efforts to limit component purchases to authorized channels. However, authorities generally recognize that the reality is that:
When demand outstrips supply or end product life cycles outlast component-level availability, buyers often believe they have no choice but to take their chances with the open market - exposing themselves and the entire supply chain to the risk of counterfeit product.2
Consequently, industry experts are not optimistic. For example, Steve Schultz, director of strategic planning and communications for Avnet Logistics, Phoenix, states that what he sees is almost an acceptance of the inevitability of this problem," and admits that there is no easy solution to this dilemma, particularly for a company that needs parts which are no longer available through authorized sources.3
In the face of this challenge, some OEMs have settled for dealing with brokers in an attempt to limit risk only to acquire grey-market components, so-called because they are knock-offs which are practically indistinguishable from the original and generally work.4 However, they often fail prematurely, resulting in expensive warranty claims. Clearly, OEMs need practical solutions to this dilemma that reduce risk, increase profit, and provide security for future acquisitions.
Avoiding Counterfeit Electronic Components
In the face of this challenge, Electro-Comp Services, Inc. has encouraging news for the OEM that needs hard to find components at reasonable prices. At Electro-Comp, we have many components in stock, and we enjoy relationships with a solid network of reliable component distributors and manufacturers that stock such components both here in the states and abroad.
We take pride that, unlike brokers, we have over 20 years of history in this business, including an in-house test lab that is quality-certified to test electronic components, as well as other value-added services such as tape and reel, MSL baking, and tinning, all located in our 16,000 square feet facility in Clearwater, Florida. When we provide components, we provide components that are authenticated and certified.
Because of our history, we are in a unique position to meet your component needs through alternative means while preserving the integrity of your supply chain. When you order components from Electro-Comp, you minimize risk, increase profitability, and gain security for future component acquisitions. Feel free to contact us for more information. We welcome you and look forward to doing business with you!
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1. OEM refers to a company that acquires a product or component and reuses or incorporates it into a new product with its own brand name. See source.
2. The Distribution Insider, "Countering Counterfeit Parts, Part 1" See source.
3. The Distribution Insider, "Countering Counterfeit Parts, Part 2" See source.
4. RFCafe.com, "Gray Market (Counterfeit Components) Websites" See source.
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