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Don't Blame Independent Distributors Alone for Fake Parts, Part 2

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Dawn Gluskin
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What You Really Need to Know About the Open Market
Dawn Gluskin   7/26/2011 10:33:56 AM
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Thanks to all for their contribution to the recent discussions on avoiding coutnerfeit components.  We apprecaite all the feedback! Anybody with additional questions, I invite you to please join us this Thursday, July 28th, at 12:00 EST as I do a LIVE CHAT Dialogue with EBN users!  Click the LIVE CHAT link on the front page to add it to your calendars.  I look forward to answering any questions you may have.  Thanks again for all of your feedback!

 
LIVE CHAT with Dawn Gluskin

What You Really Need to Know About the Open Market

"Not all non-franchised distributors are created equal. Many companies that play in the open (non-authorized) distribution market have gone to great lengths to ensure that the components they sell are counterfeit-free. In this Live Chat, Dawn Gluskin, founder and CEO of distributor SolTec Electronics, will talk about what differentiates these companies from unscrupulous open-market brokers."

Add this event to your calendar.


 

JERRY CHAN
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Stock Keeper
Re: Don't blame...
JERRY CHAN   7/21/2011 1:02:16 PM
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Counterfeits Parts to & revered engineering Semiconductors chip you can find everywhere in China nowadays from micro controller, OTP, EER, & so on. including memory card like USB flash drive, SD, & others cards as counterfeits too (example 8GB card printed on card and when you plug in will show 8GB too but right after when you media, you will never see it again).

So do Cable & Wires as well (USB, HDMI, Ethernet RJ45, & so on). Most of the Purchasing people will never find out they are getting real/ counterfeits cables. Meaning printing our UL numbers on their  none UL cable to resell to some customers that looking for lower cost due to higher cost on commodity like Gold, Copper, PVC, & so on….

Another word, seen like you are getting LV, Gucci, at bargain price but you are getting FAKE item made of cheap material….Good luck to everyone not getting counterfeits item from oversea suppliers that you don’t know….


JERRY CHAN
User Rank
Stock Keeper
Counterfeits Parts to & revered engineering
JERRY CHAN   7/21/2011 1:01:18 PM
NO RATINGS

Semiconductors chip you can find everywhere in China nowadays from micro controller, OTP, EER, & so on. including memory card like USB flash drive, SD, & others cards as counterfeits too (example 8GB card printed on card and when you plug in will show 8GB too but right after when you media, you will never see it again).

So do Cable & Wires as well (USB, HDMI, Ethernet RJ45, & so on). Most of the Purchasing people will never find out they are getting real/ counterfeits cables. Meaning printing our UL numbers on their  none UL cable to resell to some customers that looking for lower cost due to higher cost on commodity like Gold, Copper, PVC, & so on….

Another word, seen like you are getting LV, Gucci, at bargain price but you are getting FAKE item made of cheap material….Good luck to everyone not getting counterfeits item from oversea suppliers that you don’t know….



Kunmi
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Re: No one to blame but no one to believe
Kunmi   7/19/2011 10:24:19 PM
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You are right. Education is very important. There must be a system in place to identify, report and follow up with the bad apples. All the independent distributors have to know what they have to look for and how they can avoid the bad ones. It is a collective effort not just throwing the stone on the sectional part of the supply chain.

Dawn Gluskin
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Re: Quality on top of...logo
Dawn Gluskin   7/19/2011 7:10:01 AM
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Thanks again for all the feedback.  We are blown away by the responses we have been getting online & via messages.  It's definitely a topic that many are passionate about.

tinye420  - Yes, there is definitely some amount of "one bad apple" going on here & yes, greed of a small group of people is ultimately hurting a larger group. 

TaimoorZ  - Absolutely.  It's all about setting up the right processes & procedures which include vendor selection and component inspectiong to take steps to mitigate risks.

elctrnx_lyf - Thank you for recognizing the value added by independents.  And, yes, strategic partnerships with reputable vendors would contribute to greatly reducing the occurence of counterfeits.

mfbertozzi - Yes, reputation is everything!  If OEMs/CM/Government agencies align with reputable vendors only, than we wouldn't be hearing about all these issues!!!

eemom - Education is key, correct!  Hopefully, this recent blog series has had some impact on educating.

Thanks again for all the feedback!


Best Regards,

Dawn Gluskin

SolTec Electronics

 




eemom
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Supply Network Guru
Re: No one to blame but no one to believe
eemom   7/14/2011 8:09:13 AM
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As I stated in my post to Part 1, I think the key factor to moving forward is education.  Independent distributors need to find a way to gather and educate the industry on how to battle Counterfeit parts.  It is easier to ban all Independents but in the US, we call that throwing away the sink with the dirty water.  If more education is provided on who and/or what to avoid, together with the necessity of Independent Distributors, maybe we'll find a more reasonable solution to this prevalent problem.

mfbertozzi
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Supply Network Guru
Quality on top of...logo
mfbertozzi   7/13/2011 3:45:08 PM
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While final part of editorial is gone, I was wondering how to explain shortly main reasons for substain indipendents could guarantee right quality. Basically, I came back through my professional life: I've experienced indipendents have to work hard because they haven't any "logo" from major OEMs which can promote theirself. Then, the only way of achieving success and good reputation, is to put "excellence" in any internal operational process and good caring of customers during post sales support.

elctrnx_lyf
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Supply Network Guru
No one to blame but no one to believe
elctrnx_lyf   7/13/2011 1:10:15 PM
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Without distributors, it is vey tough may be almost impossible for the OEM companies to keep their supply chain simple and to deliver the products. You can not blame the independent distributors but at the same time you can not belive that eveything coming to you is a right component. How to make sure that all is right is definitely is huge task for the OEM's. I think the right way will be to work with well known distributors in the industry till there is some effective tool to detect the counterfeiting is invented.

TaimoorZ
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Supply Network Guru
Re: Don't blame...
TaimoorZ   7/13/2011 11:28:53 AM
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I think when it comes to procurement within the government and especially related to military, there has to be strict quality checking once the parts are received. No matter how reliable the distributor is, there can be no guarantee of the quality of the parts. I think the the departments within the government are also partially responsible in this case for not having effective quality control measures in place. I don't consider the entire blame on the distributors to be justified.

tinye420
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More money, more problems
tinye420   7/13/2011 10:32:06 AM
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I would have to agree that not all idependents are to blame. There are just some greedy people in the world and some of them happen to work for independent distributors. Rather than taking a solid deal at a solid margin from a solid, trustworthy supplier they are more inclined to take a higher margin deal from a less reputable supplier because it means more money in their pocket. But this is true in any industry. The almighty dollar is very alluring. There is never going to be a way to 100% stop counterfeit parts from entering the market. Lets face it, there have been counterfeiters in the world for thousands of years. Counterfeit money, counterfeit art, counterfeit antiques, you name it. If there is money to be made off the counterfeiting of a product then the market for those counterfeits will always be there. Again, the almighty dollar (or yen) is very alluring, not just to the person selling the counterfeits but to the person making them as well. 

So this problem is always going to exist in the independent distributor market unless steps are taken by the independent company owner to stop them. Unfortunately there are only two ways that I see to stop it. One option would be standard commission pay for orders regardless of the profit. If the salesman isnt going to make more money purchasing the parts at a cheaper price from a less than reputable supplier then they would be more likely to purchase them from a trustworthy supplier with the proper tracability or paperwork on the parts. The second and probably more realistic solution would have to be making the financial burden for purchasing counterfeit parts a little more harsh on the salesman. Maybe something like not only losing the commission that you would have made off the order but also an additional amount of commission loss. I know that both of these solutions put strain on the salesman but unfortunately that is where the problem really starts. Again, its all about money.

There is still going to be a need for testing parts, tracing parts, etc. But there would be less of a need for that if all companies were purchasing parts from reputable suppliers not generally known for selling counterfeit parts. But thats just my opinion.      

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