The far-ranging impacts of electronic components sourcing

Kristofor Kelly, President and CEO

January 23rd, 2019

Technology is fundamental to daily life. Excellence in electronics sourcing should span all verticals.

Quality electronic components sourcing impacts everything from space travel to healthcare to wearable tech. With technology so fundamental to modern life, quality conformance is critical in all verticals. Here’s more on how quality control can impact your electronic devices—and how to source the best electronic components for your needs, from mil-spec to consumer goods.  

High-reliability stakes are greater than ever.

Pushing the bounds of space exploration takes preparation, commitment, and unerring electrical components. Interestingly, EPSNews recently reported that demand is waning for mil-spec components in the aerospace industry. Aerospace OEMs and many other government subcontractors are increasingly turning to commercial-off-the-shelf (COTS) parts.

Consolidation of contractors in the aerospace and defense industries has reduced demand for mil-spec parts, while the commercial electronics market boasts cutting-edge technology with faster delivery and lower costs.

The downside of using commercial electronics in the space industry? An open commercial supply chain increases vulnerabilities to counterfeit and non-conforming parts. As EPSNews reports, NASA is constantly procuring hundreds of thousands of electrical and mechanical parts.

NASA reports that mission failures related to faulty equipment are fairly infrequent, with only four since 2009. However, the agency has lost a staggering $1.3 billion over the last 10 years due to substandard parts. In a 2017 report, NASA’s Inspector General (IG) reports that the use of COTS devices may increase non-conformance risk and inject unknowns into NASA’s quality-control process. To combat this, NASA’s IG recommended a cooperative, integrated approach to quality conformance through engagement and participation across all procurement centers.

Trusted suppliers are a common need.

Aerospace and military are not the only verticals where high-reliability is a life-or-death proposition. Lifesaving medical technologies are more prolific than ever, putting medical components to the test every day.

From glucose meters to implantable devices, testing to ensure safety and legitimacy of these components is critical. Problems can come up anywhere along the supply chain. All processes and suppliers must conform to the highest standards.

Having trusted suppliers and sourcing only the best components ensures a healthy supply chain, no matter your vertical.

Strategic supply chain improvements can offer an edge in a tight market.

High reliability and mil-spec components hold the highest standards in the industry. But what about everyone else? Consumers around the world want more complicated devices than ever before, driving global demand for consumer electronic parts. Companies are responding in different ways, but supply chain modifications hold promise for nearly every industry.

Let’s take Fitbit as an example. As ESPNews explains, Fitbit is similar to many large consumer OEMs that operate in a quickly changing market “known for slim margins and demanding customers.” But with $1.6 billion in revenue alone in 2017, Fitbit is thriving. Fitbit credits strategic multi-sourcing for giving them strategic and tactical benefits, and even better supplier relationships.

Ensuring electronic components compliance, every time.

Whether you are looking to diversify your supply chain or satisfy high-reliability needs, authenticity and quality conformance are more important than ever. We know what excellence in your supply chain looks like. We’ve processed over one billion parts with zero quality conformance issues. If you are looking to join a culture of excellence in electronic component sourcing, give us a call today.

 

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" Whether you are looking to diversify your supply chain or satisfy high-reliability needs, authenticity and quality conformance are more important than ever. We know what excellence in your supply chain looks like. "

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