With Counterfeit Components, Buyer Beware

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Stock Keeper
PLANNING is the key when it comes to obsolescence and counterfeit prevention
SShammah   3/8/2013 10:30:38 AM

Area51 has been helping OEM's with obsolescence for more than 10 years now.

A premium minority supplier to Northrop Grumman and many other prime contractors, Area51 prides itself it is End of Life program offerings as well as our ability to manage EOL devices over the life span of your product with cutting edge solutions.

Through Area51's EOL management solutions and services, Area51 offers programs designed to fit with the lifespan of your products. A planned preventative approach which controls costs, guarantees product availability just in time, when you need it and only when you need it with no mishaps or surprises.

Product is maintained, bonded, secured and stored in our corporate owned Irvine, California humidity controlled facility. All products are insured.

With One (1) to Ten (10) year supply chain agreements Area51 introduces cost effective and proven methods to sustain the burden of massive inventorying costs and management of said products throughout the life cycle of the end product.

We recognize the fact that OEM's should do what they do best, engineer and develop products to a changing world and let Area51 assume the supply chain responsibilities of their older still active products. All products have a life span, a warranty and a purpose, Area51 fills that void by adopting your program into a cost effective management system.

Having programs such as these available to the end user and PRIME Contractors not only guarantees and mitigates the risk of counterfeit components from entering their supply chain, but also allows the end user to engage a minority entity with long term business opportunities thus supporting their minority spending goals at the same time. Its a win win for all parties and a small preventative step to assure quality. End of Life components gives birth to new buisness opportunites at Area51.



User Rank
Supply Network Guru
Re: Dire Straits for procurement and service engineer
_hm   3/3/2013 5:14:09 PM

@Brian: This involves very expensive systems. e.g. radar system installed in Saudi Arabia, South Korea or Taiwan and each of them cost few millions. Also they have trained person for it and lot many other inestements. Now, If one of subsystem or part fails, they do not intend to replace them. They desperatly seeks to repair it as they are very critical requirement.

When OEM can not repair it, they look for other vendors to substitute that part with closest available reverse engineered subassembly. In this process, they may have to employ some non qualifed parts. This is how commercial parts gets introduced to military systems.

This is not correct, but in essence both parties agree to this to satisfy their urgent needs at reasonable price.

Brian Fuller
User Rank
Re: Dire Straits for procurement and service engineer
Brian Fuller   3/3/2013 2:49:32 PM

@_hm, do you think this problem gets minimized over time as more defense systems have shorter lifecycles? I have to believe that the churn rate in military electronics will quicken over time. 

But I may be wrong. 


User Rank
Supply Network Guru
Dire Straits for procurement and service engineer
_hm   3/3/2013 7:25:57 AM

Defence needs legacy sustainment support for their old failing systems. Most OEM are unable to offer this and they instead offer newer system solution, which cost few millions. Alternate is to repair exsisting system with other defence vendor.

If you have read original specfications for each part from OEM, they are very very extensive. It does is impossible to get those parts as specified, unless custom remanufactured. Which will cost few hundered thousand dollars for each part. Alternate is to employ their commercial equivalent or some other substitute. Both defence procurement and service engineer does indirectly agree to this due to urgent requirement. That is how not so qualifed parts gets introduced to supply chain. I will not say it counterfeit. Mainly they are commercial equivalnet of QPL parts.


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