Critical Links

While counterfeit parts are not a new problem for the industry, it is a persistent one, and in light of the newest RoHS law in China, it’s more important than ever to know that the parts you spec are the parts you get. Later this year, China RoHS will require that vendor compliance is confirmed through a Chinese test house. That’s not when you want to find out that you have purchased bogus parts.

The irony? A large number of counterfeit parts sold in this country originate in China. China’s loose enforcement of intellectual property laws and convoluted electronics supply chains are well documented.

Not trading in China or not concerned about compliant parts? Counterfeit parts come in a lot of varieties, and one counterfeit component that’s not performing to your specifications can take down your whole line.

And if that component finds its way onto the market and out to customers, it’s likely to cause even costlier problems with service calls, warranty issues—maybe even leading to a recall. No restitution can be expected from the purported vendor as it is not their product.

There is, of course, a greater temptation to source from the gray market when the parts you need are in short supply or you were quoted a fantastic price. Since some buyers gets paid on PPV (purchase price variance) and the company can take advantage of the super price, why not make the deal? DON’T DO IT! It’s not that brokers are necessarily dishonest, it’s the fact that they typically can’t provide real traceability (such as a certificate of compliance or date/lot code), as they usually don’t know the original source of the parts.

eBay and other Internet sites should also be avoided as sources for components. Passive components (especially surface mount product) are easy marks for counterfeiters. Once they come off a reel, there’s no marking on the individual part.

It may sound self-serving, but buying components from a franchised distributor or directly from a manufacturer, are the only two ways you can have real confidence that you’re getting what you ordered. It’s not worth risking long-term financial exposure to you and your company for short-term savings.

NEDA (National Electronic Distributions Association) has taken a strong position on this matter. They have provided a simple letter to be used by distributors to communicate the confidence the customer should have buying from an authorized, franchised distributor. Make sure you’re making the purchasing decisions today that are right for your business tomorrow.

This blog post was contributed by Jeff Shafer, senior VP of product at Newark. At Newark, Jeff leads product management, product data, pricing and customer segment strategy, and was instrumental in developing and implementing RoHS compliance initiatives for the company, customers and suppliers.