The risk of encountering counterfeit components has risen
significantly in recent times. The sheer scale was highlighted by a
US/EU customs operation which seized 360,000 counterfeit electronic
components over a two-week period late last year.
As more counterfeit components appear in the supply chain the risk
of a catastrophic system failure in the field increases.
All of this points towards a need to help assemblers, both OEMs and
electronic manufacturing services (EMS) providers, minimise the
risk of sourcing counterfeit components.
So what is the magic bullet? How can you even begin to tackle a
problem that is global in nature from a purely UK perspective?
These are difficult questions to answer. But there is a role for a
cross-industry body such as Intellect in making a concerted attempt
to minimise the risk our members are being exposed to. It is also
worth emphasising that Intellect advises all assemblers to source
components from authorised distributors.
In our view, this is the best way to minimise risk. However, we
accept that in some cases, for perfectly valid reasons, this is
impossible. Independent distributors can and will continue to be
used.
The vast majority of reports that Intellect and other organisations
have received relate to components obtained through independent
channels, known by some as the grey market. In partnership with the
UK’s biggest independent component distributor, Astute Electronics,
and Bedford EMS provider Axis Electronics, we have formulated a set
of procedures which we will ask all UK independent distributors to
implement in order to minimise this risk.
Intellect will contact all independent component distributors with
a UK presence and request that they commit to the finalised set of
procedures. These procedures are split into three separate streams
of activity.
The first relates to ongoing measures that any UK independent
distributor should take to minimise the risk that they will
encounter counterfeits.
The second details the specific checks that a UK independent
distributor should make when they receive an order for a part.
The third relates to the specific actions that a UK independent
distributor should take dependent on the nature of the source.
Together these activity streams will help to ensure that the given
part is genuine.
Following a commitment to implement this system, the independent
distributor will be placed on an Intellect “approved list”. This
list will be circulated free of charge to those who request it.
Independent distributors will also be requested to publicly display
a quality mark logo that signifies that symbolises this commitment.
We expect to begin implementation in the summer of 2009.
That is all well and good, I hear you say, but how do we ensure the
commitments made are honoured? In parallel with our work, the UK
Electronics Alliance (UKEA) is tendering for the design of a
counterfeit component information site, which will include an
online reporting system. Using this, assemblers will be able to
anonymously report cases of counterfeiting. The reports will
include information detailing the distributor from which the
counterfeit was sourced.
If a distributor that holds the quality mark is reported via this
system, the mark will be rescinded and the party concerned
notified, with a right of appeal.
We accept that the vast majority of independent distributors do not
knowingly supply counterfeit product. There can be no hard and fast
rule about who is removed from a given list and under what
circumstances. All of these measures concentrate on minimising
risk. At the end of the day, the “buyer beware” principle must
prevail in any purchase.
Henry Parker is a programme manager at Intellect.