Issue link: https://iconnect007.uberflip.com/i/1475010
AUGUST 2022 I SMT007 MAGAZINE 19 Johnson: I have been hearing discussion about extra testing of components upon receipt. Because EMS companies are sometimes hav- ing to get more creative about how they're sourcing their parts, that pushes them closer than they feel comfortable to gray market sources. And yet, they need to get the business out the door. at creates an opportunity for a counterfeiter to step in. Lawrence: Oh, for sure. Johnson: What does Digi-Key do to ensure that you have all legitimate parts in your inventory? How do you do that? Lawrence: Our customers rely on us for our integrity in stocking a quality product. First, we procure our product directly from the man- ufacturer, as an Authorized Distributor. We're not getting stock from any sources we don't trust. For us, the biggest risk for counterfeit is cus- tomer returns. For example, we've already shipped the product which we know is authen- tic and genuine, and we receive a claim on that product, whether it be a report of failure in the product or simply customers saying, "I ordered the wrong part. I don't need this." When that returned product hits our dock, we have a con- trol plan for counterfeit mitigation. We are cer- tified to AS 6496 standards in terms of counter- feit mitigation and prevention. Our customer returns department verifies physical product based on how it looks visually, part markings when they exist, labeling, pack- aging, product traceability and so on. Trace- ability is probably our biggest means of iden- tifying potential suspect counterfeit product and mitigating the risk that counterfeit prod- uct enters our inventory. So, we have trace- ability verification all the way from the initial receipt to shipment to the customer. Any time something comes back, we're re-verifying to make sure that it's actually the same prod- uct we shipped. at means verifying against paperwork, and against the physical attributes on the product. If anything at all is identified as a potential concern, we use a separate set of custom steps to have product verified by one of our product distribution technicians. ese technicians have 14 additional steps that they go through, verifying what the parts look like under a microscope and what the product looks like physically. If there's a concern, we launch a full-blown investigation for counterfeit, which involves outreach to the customer, and outreach to the original manufacturer to partner with us and create a case. If we do have any type of suspi- cion, we quarantine the product for five years. e customers do not get that product back. We ensure that it's not reintroduced into the supply chain. Johnson: at's a long process. Lawrence: It is a time-consuming process, but it proves beneficial to those customers who may have been on the receiving end, as well as our suppliers, should we find someone is wrong- Kelsey Lawrence