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ERAI Risk Mitigation Tools to Address Today’s Complex Global Marketplace - Snider
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ERAI Risk Mitigation Tools to Address Today’s Complex Global Marketplace - Snider

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Presented at October 1, 2009 Counterfeit Workshop

Presented at October 1, 2009 Counterfeit Workshop

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  • 1. ® A WORLD OF INFORMATION AT YOUR FINGERTIPS Overview of Counterfeit and Substandard Parts in the Global Hi-tech Electronics Supply Chain ERAI Risk Mitigation Tools to Address Today’s Complex Global Marketplace October 1, 2009 Mark Snider President ERAI, Inc. (mark@erai.com) www.erai.com © 2009 ERAI, Inc.
  • 2. ® INTRODUCTION TO ERAI, INC. • Founded in 1995, ERAI is an information services organization that monitors, investigates and reports issues affecting the global hi-tech electronics supply chain. • ERAI provides tools to mitigate risks on substandard parts, counterfeit parts, vendors and even customers. • Subscribers include OEMs, CMs, Distributors, OCMs, government agencies and industry associations. • Actively involved in a number of committees and task forces addressing the counterfeit issue. A world of information at your fingertips © 2009 ERAI, Inc.
  • 3. ® ERAI’S FIRST COUNTERFEIT INVESTIGATION • First counterfeit part approximately 10 years ago • Toshiba (Japan) verses Samsung (Korea) • Mid Nineties sees increase of outsourced manufacturing due to cheap labor markets • Taiwan, Singapore, Malaysia • Mexico • South America • India • China A world of information at your fingertips © 2009 ERAI, Inc.
  • 4. ® SOME ROOT CAUSES OF COUNTERFEITS • Chinese governments willingness to overlook the problem • Enormous pool of cheap labor • The ROHS Initiative • E-Waste – The cost of going Green • Outsourced contract manufacturing driven by price considerations over quality • Internet makes global market access easy A world of information at your fingertips © 2009 ERAI, Inc.
  • 5. ® TOTAL COUNTERFEIT INCIDENTS: OCMs, Distributors, Board Assemblers, Prime/Sub Contractors 2005 - 2008 10,000 9,356 9,000 8,600 8,139 8,000 7,000 6,000 5,000 3,868 4,000 3,000 2,000 1,000 0 2005 2006 2007 2008 (est.) US Department of Commerce – Preliminary Data (As of March 4, 2009) A world of information at your fingertips © 2009 ERAI, Inc.
  • 6. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 Manufacturer: TOSHIBA A world of information at your fingertips © 2009 ERAI, Inc.
  • 7. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 8. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 9. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 10. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 11. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 12. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 13. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 14. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 15. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 16. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 17. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  • 18. ® IS DETECTION EASY? A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 19. ® IS DETECTION EASY? A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 20. ® ERAI RISK MITIGATION TOOLS THE WORLD LEADER IN COUNTERFEIT COMPONENT INFORMATION AND RISK MITIGATION SERVICES A world of information at your fingertips © 2009 ERAI, Inc.
  • 21. ® ERAI BENEFITS • Mitigate Risk Associated with Parts, Customers, & Vendors • Counterfeit, Faulty & High Risk Parts Detailed Reports • Bill of Material/Assembly Cross Checking Against High-Risk Parts Database • Vendor and Customer Analysis • Proactively Prevent Losses & Recurring Problems • Reporting and Tracking Data on Corporate Identity Theft • Review Member Profiles for Membership Status and Quality Achievements A world of information at your fingertips © 2009 ERAI, Inc.
  • 22. ® HIGH RISK PARTS SEARCH STEP 1 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 23. ® HIGH RISK PARTS SEARCH STEP 2 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 24. ® HIGH RISK PARTS SEARCH STEP 3 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 25. ® HIGH RISK PARTS DATABASE A world of information at your fingertips © 2009 ERAI, Inc.
  • 26. ® ERAI MATERIAL SCRUBBER THE FILE A world of information at your fingertips © 2009 ERAI, Inc.
  • 27. ® ERAI MATERIAL SCRUBBER Step 1 A world of information at your fingertips © 2009 ERAI, Inc.
  • 28. ® ERAI MATERIAL SCRUBBER Step 2 A world of information at your fingertips © 2009 ERAI, Inc.
  • 29. ® ERAI MATERIAL SCRUBBER REPORT A world of information at your fingertips © 2009 ERAI, Inc.
  • 30. ® ERAI MATERIAL SCRUBBER Scrubber Management Suite A world of information at your fingertips © 2009 ERAI, Inc.
  • 31. ® COMPLAINTS SEARCH STEP 1 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 32. ® COMPLAINTS SEARCH STEP 2 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 33. ® COMPLAINTS SEARCH STEP 3 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 34. ® COMPLAINTS SEARCH STEP 4 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 35. ® COMPLAINTS SEARCH STEP 5 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 36. ® COMPLAINTS SEARCH STEP 6 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  • 37. ® THE SUPPLY CHAIN IS COMPROMISED • Fab-less IC production continues to grow • Scrapping procedures can become compromised • E-Waste is likely to continue to grow • No one is immune in the supply chain • RMAs from customers back to franchise or factories • Stock rotations back to factory from franchise • Create a program to address the issue-it’s not going away anytime soon A world of information at your fingertips © 2009 ERAI, Inc.
  • 38. ® SUMMARY • Mitigate risk-parts, customers and vendors • Enhance quality management and procurement practices • Proactively prevent losses, recurring Problems • Stay informed with real time information on hi-risk parts • Encourage your vendors and sub contractors to get involved and be proactive A world of information at your fingertips © 2009 ERAI, Inc.