08 Jul '14, 4pm

Poorly Managed Excess Inventory Poses Threat to Supply Chain - TTI MarketEye #supplychain

Poorly Managed Excess Inventory Poses Threat to Supply Chain - TTI MarketEye #supplychain

Poorly Managed Excess Inventory Poses Threat to Supply Chain 07.08.2014 // Barbara Jorgensen // Supply Chain How selling to the open market jeopardizes the entire supply chain A long-standing challenge in the electronics supply chain is the management of so-called ‘excess’ inventory. When an OEM or EMS provider orders too much product, it is often sold in the open market to distributors that are not franchised by component suppliers. The problems this creates for the authorized channel include the taint of counterfeit components in the electronics supply chain. Authorization—or franchises—are designed to protect suppliers, distributors and customers. From the customer standpoint, procuring product from an authorized distributor is similar to acquiring it directly from the supplier in terms of brand, quality and performance. Authorization also enables distributors to take b...

Full article: http://www.ttiinc.com/object/me-jorgensen-20140703.html

Comments

  1. 11 Jul '14, 11am

    KENNY MCGEE
    Group Managing Director at Component Sense

    How does genuine product bought direct from TE or any other manufacturer become a counterfeit risk as soon as it lands in the hands of the customer?

    Large OEM and EMS companies have excellent controls and traceability. I buy excess stock all the time from large tier 1, trusted OEM and EMS companies and I have the reassurance that the stock has been properly procured from direct sources. There is no risk at all, I can see CofC's or SAP traceability. I know my suppliers systems and procedures inside out and have close relationships with key personnel in all areas. We can pass these assurances on to our customers so that they remain safe from counterfeits too.

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