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Fusion’s growth path includes counterfeit avoidance
Andover, Mass. — During a global economic downturn, Fusion Trade, a global independent distributor of electronic components, has managed to keep its company on a significant growth path in 2009 marked with facility expansions, a new anti-counterfeit inspection lab, enhanced customers systems and industry certifications.
Fusion attributes its double-digit sales increase last year to gaining preferred vendor list status at additional leading OEMs, geographic expansion including infrastructure investments, and continued anti-counterfeit measures. This includes enhancements to its Requirements Management System (RMS) that now provides broader sourcing capabilities, higher efficiency and faster turnaround times.
Over the past year, Fusion has doubled the space of its European headquarters in Amsterdam as well as its staff; tripled the size of its Quality Hub in Hong Kong; increased its global workforce by 20 percent, and invested in a new anti-counterfeit screening and analysis lab to further protect against counterfeit electronics components entering the supply chain.
The new $150,000 lab includes a real-time x-ray imaging system that allows inspectors to analyze and photograph die and leadframes, check wire bonds and look for void defects and detect moisture penetration. The decapsulation machines allows for inspection of the interior of the chips, while the high-power (2000x) optical microscopy equipment enables inspectors to view handling and rework markings on the parts, and compare them to confirmed good samples.
“There are very few distributors that have this level of equipment primarily because it’s a large capital investment. X-ray equipment can cost $50,000 or more, decapsulation equipment can run more than that and a good microscope can run $25,000 to $30,000,” says Paul Romano, COO, at Fusion.
The lab, claimed to be one of the most advanced among independent distributors, enables Fusion to conduct both destructive and non-destructive screening and analysis, and supplements the distributor’s quality and inspection processes already in place, including sourcing standards that include a five-phase verification process, vendor rating system and site audits.
The distributor also has a 21-point receiving inspection process where the components are documented, audited and stored in a climate-controlled, ESD-compliant warehouse, and a counterfeit avoidance program that includes 100 percent traceability using database comparisons and manufacturer specifications.
Romano says Fusion takes a systems-based approach to stop counterfeiting. “We do everything we can to prevent our customers from getting counterfeits because it’s costly.”
Fusion has firm control over who it buys from and what it buys and from what type of vendor, Romano says. “If we know our vendors well that alone will help prevent 90 percent of the issues.”
The other pieces of the puzzle are the information and quality management systems. “If you know what is happening out in the marketplace and you know what parts are short and what the issues are then you have a handle on what parts to watch out for,” he says.
Romano also notes that the 21-point inspection process is one of the most important systems it has in place to prevent counterfeit parts from entering the supply chain.
Fusion has anti-counterfeit screening equipment and procedures in place at each of its Quality Hubs, all of which are ANSI ESD 20.20-certified. Inspections conducted at all of the Quality Hubs are conducted by Independent Distributors of Electronics Association (IDEA) certified inspectors only.
Fusion also has been recognized by IDEA as one of the first independent distributors to meet all of the new stricter IDEA membership requirements, including achieving ANSI ESD 20.20 certification at all warehouse locations. Five additional Fusion component inspectors achieved IDEA ICE-3000certification over the past year.
Romano says IDEA has done a lot to advance quality in the independent distribution marketplace. “Their primary goal is to develop a program of visual inspection that gives guidance to independents on how to spot and prevent counterfeit parts.”
To become a member, independent distributors have to meet some fairly stringent requirements including ESD 20.20 certification at all warehouses and ISO 9000 certification. “You really have to put time and effort into developing and earning these certifications to become a member. It’s a good thing for the industry,” says Romano.
Members also have to integrate IDEA’s 1010 (IDEA-STD-1010-A) inspection standard into their quality systems and have one ICE 3000 exam-qualified inspector at each shipping and receiving location.
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