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58 SMT Magazine • October 2014 AS6081 counterfeit avoidance standard for elec- tronic components. Our philosophy adheres to the old adage "an ounce of prevention is worth a pound of cure," especially when handling such a virulent technological disease as coun- terfeiting. here are some steps your business can take to mitigate the counterfeit electronic parts threat: 1) Embrace change; don't fear it. "Adapt or die" has become the catch phrase for many in- dustries in our rapidly changing, global market. Businesses that were proactive in their approach to the emerging green revolution in the 1990s, and had the vision to be out front with the new regu- lations and shift in social con- sciousness toward environ- mental responsibility, were in a better position to ride the wave of change to success and profitability. Indeed, the term "environmentally friendly" is now synonymous with good business ethics and best prac- tices, much like Six Sigma and Total Quality Management became standard conventions a few years back. 2) Contract manufacturers and distributors should com- municate with subject matter experts, and allow them to ed- ucate their sales team and qual- ity/purchasing staff regarding re- turns, control of obsolete parts and traceability. Contract manufacturers, working for com- mercial accounts whose main concern is keeping expenditures down to stay competitive, should consider the long-term costs of not investing in a counterfeit avoidance and detection system. A simple SWOT analysis (strengths, weakness- es, opportunities and threats) will confirm that potential short-term profits are never worth the long-term risk of losing one's business and rep- utation. 3) If you aren't doing anything different in your supply chain than you were three years ago, you are making a huge mistake regardless of the industry you serve. If you participate in the defense supply chain, become certified to AS6081 counterfeit avoidance and detection standards. However, there are several different levels of counterfeit mitigation depending on your electronic parts application, whether de- fense-related, commercial or consumer. Many companies still allow their buyers to choose whom they are doing business with, in- stead of permitting their quality department to perform audits of potential business partners simply because it costs too much money. If your business is certified with a counterfeit avoidance plan already in place, it's a lot more attractive to com- mercial businesses, since you can save them the time and money of having to sending their auditors to do on-site in- spections of your business. Re- member that companies that are certified to international standards like SAE, AS9100, AS9120-A, or AS6081 are sub- ject to third-party audits on an annual basis. These certifi- cations require certified com- panies to comply and perform or risk catastrophic damage to their business. In addition, companies buying from com- panies certified to interna- tional standards benefit from third-party auditors perform- ing quality audits that ensure an increase to the overall quality level for their supply chain, prove diligence and are no cost to them. Instead, your business can focus on market- ing to its customers that it has a certified pro- curement partner to source components—espe- cially rare for out-of-production parts that must be procured from "other than authorized" sup- ply sources. 4) Conduct ongoing training for your qual- ity and sales teams, and maintain up-to-date cOunterFeit eLectrOnic Parts aVOiDance: PrOFitabiLitY Or catastrOPhe continues If your business is certified with a counterfeit avoidance plan already in place, it's a lot more attractive to commercial businesses, since you can save them the time and money of having to send their auditors to do on-site inspections of your business. " " krAMEr On COunTErFEiTS