Counterfeit Issue Directs Distributors to Apply Swift Changes

BRENTWOOD, N.Y. - Feb. 25, 2014 - PRLog -- In Part II of our Counterfeit Avoidance Series, we focus on the tremendous strides that electronic distributors have made in implementing stringent inventory quality control. A decade ago, as more OEMs, CMs, and OCMs recognized the extent and potential consequences of global counterfeiting; the government and private sector began developing new standards and best practices while industry leaders started creating organizations and resources to help segments within the supply chain mitigate the risk of substandard and counterfeit part infiltration.

In late 2004, the U.S. Chamber of Commerce launched the CACP (Coalition Against Counterfeit and Piracy), which, since its inception, has been committed to increasing the understanding of the negative impact of counterfeiting and piracy, and to finding real solutions by working with the industry, governments, opinion leaders, the media, and consumers. According to ERAI, Inc. - the industry's leading source of risk assessment information related to counterfeit electronics and high-risk parts in the global electronics supply chain - this was the start of various sectors unifying for a shared purpose.

"From 2004 on, you found industry leaders and others assembling at conferences and symposiums either looking for or providing information and guidance,” said Kristal Snider, ERAI Co-founder/Vice President, a counterfeit identification and avoidance expert. “The ERAI’s level of information sharing sharply increased. Our members needed to be informed and educated in order to become a protective shield for their customers.”

In June of 2006, the Semiconductor Industry Association (SIA) launched the Anti-Counterfeiting Task Force. In October of that year, the IDEA-STD-1010-A was published, and discussions occurred within SAE International to create a standard to supplement ISO and AS9100/AS9120 that would specifically address counterfeit avoidance.

In January of 2010, the veil was fully lifted when the U.S. Department of Commerce Bureau of Industry and Security Office of Technology Evaluation published the Defense Industrial Base Assessment titled Counterfeit Electronics. This study revealed findings collected during an extensive survey that polled nearly 400 companies representing different segments during the years 2005 through 2008. 39% of this target group, which included OCMs, distributors, brokers, contractors, and Department of Defense agencies, encountered counterfeit electronics within that time period.

"Data collection is essential in order to identify trends, track counterfeiting activity, weed out high-risk sources of supply, and enhance counterfeit identification best practices,” said Ms. Snider.  “We’ve worked hard to try and lift the stigma surrounding certain sectors of being a receiver of counterfeit material. Reporting should not damage a company’s reputation; rather it helps suppliers deeper within the supply chain prevent nonconforming parts from reaching top-tier independents that sell directly to government contractors and other entities.”

Throughout the industry, the last decade also introduced a mandatory, comprehensive, and multi-level screening process, which includes testing; visual, internal, and third party inspections; X-Ray imaging; decapsulation; die inspection; documentation; magnification; labeling verification; and many other types of concentrated vetting.

Distributors such as the Harry Krantz Company use state-of-the-art detection technologies that identify problematic components. By maintaining a tightly controlled, pre-qualified, audited vendor list as mandated by the ISO 9001-2009 AS 9100B quality system - as well as rigorous internal inspections in accordance with the IDEA 1010 standard, in ESD-controlled environments consistent with ANSI/ESD 20.20 certifications and military and industry standards - legitimate inventory can be routinely stocked and distributed. Thus, customers can be provided with the high-quality material they need, and those who heavily rely on this critical material can be ultimately protected.

Stay tuned for future installments of our Counterfeit Avoidance Series in upcoming e-newsletters.