Counterfeit parts problem worsens
By Jim Carbone -- Purchasing, 6/7/2007 5:17:00 PM
The problem of counterfeit parts is hard to quantify, but many in the electronics supply chain say it is getting worse as more manufacturing and sourcing has moved into low-cost Asian countries.
However, buyers who source globally can take a few easy steps to greatly reduce the risk of buying counterfeit or substandard parts, according to electronics purchasers and distributors.
The first step is to always know the source of the parts. While that may seem obvious, often buyers who have purchased bogus parts have done so without knowing much about the source of the components. When parts are in short supply, buyers may scramble for parts and may buy components from a source they would not normally consider if the parts were not in short supply. In other cases, buyers make opportunistic purchases for components priced at below market value. Sometimes those parts end up being substandard or counterfeit.
“In some cases, the parts are from rejected lots with genuine markings from component manufacturers. The parts got into the field through pilferage,” says Harvinder Sembhi, vice president supply chain strategy and planning for electronics manufacturing services (EMS) provider Celestica, based in Toronto. “So when you look at the marking, the parts appear genuine, but there is a quality issue on the inside.” In other cases, the parts are from suppliers who are knowingly making counterfeit components and selling them in the market,” he says.
Non franchised distributors and parts brokers are often blamed for the circulation of bogus parts. While the major independent distributors have inspection and warranty programs to protect buyers against fake parts, there are others that are less concerned if the parts they sell are genuine.
“Buyers need to realize that not all independent distributors are created equal,” says Debra Eggeman, general manager of the Independent Distributors Electronics Association, a Buena Park, Calif.-based trade group representing non-franchised distributors. Independent distributors who knowingly sell fake parts are not allowed to become IDEA members.
She says OEMs and electronics manufacturing services providers need to have an approved vendor list (AVL) policy the same way they do with franchised distributors and component manufacturers.
“They need to have the quality director or vice president setting that policy in place on what the requirements are for an independent distributor to be on their AVL,” says Eggeman.
Eggeman also recommends that buyers visit independent distributors. “There is no substitute for on-site audits,” she adds. With audits, buyers should make sure the distributor is certified to ISO 9000 and complies with IDEA’s 10.10 quality standard. That standard governs how parts should be inspected to make sure they are genuine.
They should also show evidence of an electrostatic discharge (ESD) program in place that is compliant with American National Standard Institute’s (ANSI) ESD 20.20 standard.
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