Here at Princeps we are specialists in sourcing genuine global electronic components so we see the risks counterfeit parts bring, from quality and safety to brand reputation. Counterfeit electronic parts are becoming increasingly technologically advanced which means that having a clear strategy to detect and avoid them is essential for every procurement team. This article will run through the risks and share our guidance on building a strong supply chain.

Why Counterfeit Components Are A Big Risk

Counterfeit parts can undermine performance and can cause serious business issues such as:

  • Product failures & expensive recalls
  • System level reliability issues in critical applications
  • Safety hazards in sectors like aerospace, medical & defence
  • Reputational & legal damage for OEMs & contract manufacturers

Because a lot of components are sourced from a complicated global supply chain, it can be difficult to assess visibility and traceability. That is why fake part prevention needs be built into your procurement processes from the very beginning.

Build a Trusted & Reliable Supply Chain

The best way to avoid counterfeit components is to reduce the number of opportunities for them to enter your supply chain.

1. Prioritise Authorised & Franchised Manufacturers

Whenever possible, source your electronic parts via Original Component Manufacturers (OCMs), authorised distributors, franchised distributors or trustworthy independent distributors who are fully audited.

This can really lower the risk of finding non genuine devices and means you will get better traceability back to the manufacturer.

2. Qualify & Audit Suppliers

Before onboarding a new supplier it’s vital to evaluate their credentials. Look for regarded certifications (e.g. ISO 9001, AS9120), membership to relevant industry bodies, documented anti counterfeit procedures, traceability practises and strong record keeping. Ensuring you regularly undertake performance reviews and audits are essential for maintaining high standards in your parts.

How To Identify Fake Parts

Despite having a strong supplier network it is wise to complete additional checks especially when you are sourcing obsolete, allocated or hard to find components.

Common faults to look for include:

  • Inconsistent/bad quality packaging - errors, unclear labels or mismatched logos
  • Unusual pricing – prices far below market value
  • Physical mistakes – inconsistent markings & fonts, sanding marks or resurfaced packages
  • Date code anomalies – unrealistic date, lot & manufacturing locations

If any of these indicators are spotted the parts should go under an enhanced inspection and testing before being released to production.

Put Inspection & Testing In Place

An incoming inspection process with a clear structure is vital. Depending on your risk requirements this could include:

  • Visual inspection under magnification for surface, lead & marking errors
  • X-ray to check internal structure & bond wires
  • XRF to determine the material composition of the lead frame
  • Decapsulation & die inspection for high criticality applications

Working with a specialist partner who is able to arrange or provide these services on your behalf helps to make sure that your supply chain has consistency and impartiality.

Making Anti Counterfeit Practices A Part Of Your Operations

Counterfeit mitigation works best when it is added into your everyday operations. This includes using clear purchasing policies and approved vendor lists as well as staff training on counterfeit awareness and reporting. Plus documented procedures for quarantining and investigating suspect parts is vital.

By using more than one strong policy, taking your time with supplier choice and detailed inspection and testing, you can dramatically reduce the risk of counterfeit components entering your supply chain, helping to protect your products, customers and reputation.

Working With A Specialist Sourcing Provider

If you’d like to allow a specialist to take care of counterfeit mitigation for you, at Princeps we undertake thorough supplier selection and full inspection and testing to minimise the risk of counterfeit parts entering your production. Our processes:

  • Keep full traceability where possible
  • Identify suspect parts early in procurement
  • Meet compliance with sector standards & customer requirements

Considering outsourcing your supply chain security? Speak to our expert team today to discover more about out specialist services.