Good point re; inbound quality inspection and verification. The responsbility level for QC doesn't end for the customer simply because the purchase order was approved. Other industries know this all too well and have taken steps to safeguard their section of the supply chain.
It's a win win situation. Buyers should cautious about the marketing strategy that brokers following as they are shielded. When comes to the quality there is always a chance for degradation in open market. If buyers has a chance to market their products directly with out brokers there will be a good channel to get customer feedback in.
I do agree that the open market is subject to quality issues, however, there are still plenty of cases when procuring from the open market becomes inevitable. In many cases there are shortages of products through regular suppliers and in order to meet customer demand, companies have to go to open market agents. To counter quality issues, companies can set up their own internal quality control process to check the parts before using them in production. This will cut down on the risk of producing substandard output and will ensure that the demand is met constantly.
@ Doug you're absolutely right, no matter how tempting the price or delivery cost may appear, it is a matter of common sense approach, best buy the product from a reliable source.
Transparency--that is, knowing who you are doing business with--should be part of any compnay's due diligence when choosing a sourcing partner. Buyers should be able to make informed decisions and have choice among suppliers. Unfortunately, so much of the open market exists because of panic buying--'I need this now or my line shuts down.' Mistakes are made on all sides--suppliers, resellers and customers--and substandard product enters the channel. Even when buying in the spot marekt--nonscheduled orders--buyers can find partners they can depend on.
Right you are Jaden! However as the reader Hospice_Houngbo pointed out, that ideal is not always practical in our day to day fight to keep production lines running.
The question becomes how to best manage the risk while still having access to the estimated $30 billion worth of product which is available via the open market each year.
The approach to counterfeiting problem is traceability to the source but it is not universally available. Most counterfeit materials get into the supply stream through indirect means, the direct line to the source could have been the best.
You ask if there is there anyone else who engages in finding sources of electronic devices? Well the answer is yes; Virtual Chip Exchange is an OEM-to-OEM Member driven website focused on the buying and selling of 100% traceable stock.
NO BROKERS ALLOWED on the site, and every OEM e-signs an agreement that all stock is traceable. If you have not tied it out, it is free to us... just go to the site and sign up. TIME Magazine called the site "the planet's largest electronics B2B exchange".
To answer your other question, there are indeed industry groups and online sites which rate brokers, but frankly new companies sprout up faster than they can be rated! An easier approach might be to rely on firms which are based in the USA and which have been in business for many years.
Immigration and Customs Enforcement is the primary investigative arm of the U.S. Department of Homeland Security (DHS). In addition to the resources applied directly to border control, which includes protecting U.S. industry from counterfeit components, there are several support groups set up to improve public awareness of the issue. These groups can provide detailed information on the problem, and include the Global Intellectual Property Center, and the Coalition Against Counterfeiting and Piracy (CACP) of which Virtual Chip Exchange was an early member and supporter.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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