Are you considering purchasing electronic components on the open market rather than waiting for delivery times? Are you worried about quality, reliability, or compatibility with your application? In today's article, our founder, Annie Maples, will share some good reasons to consider the global market, whether you're an entrepreneur starting a new business or an experienced professional looking for supply chain efficiency opportunities. Want to know what we discussed? Read on!
What is the open market for electronic components?
It refers to the global market where electronic components are bought and sold outside the direct channels of manufacturers or specialized distributors. It includes various channels such as independent warehouse distributors , OEM overstocks, and premium prices. In this market, buyers and sellers can trade a wide range of electronic components, including integrated circuits (ICs), capacitors, resistors, diodes, transistors, connectors, and more.
The importance of the global market
This market often leads to more competitive prices, contributing to cost mitigation strategies.
We spoke with our founder, Annie Maples , about this important topic and gained valuable insights.
“The benefits associated with an open market are far more significant than the risks.” – Annie Maples
Annie, there's a common question many people ask: is there any risk in purchasing outside of the manufacturer's direct channels? What can you tell us about this?
Yes, it's important to keep in mind that the global market can pose risks, such as counterfeit components or unreliable suppliers. That's why at PCE, all parts are inspected according to IDEA Std-1010-B. Essentially, we conduct rigorous testing in our laboratory to ensure the parts you receive, whether electronic or electromechanical, are reliable.
Before even arriving at incoming inspections, all suppliers must pass and are continuously monitored by PCE's rigorous Approved Supplier List (AVL) screening process.
We conduct audits directly with our suppliers and can provide pre-import photos along with our quality control report.
Upon receipt, all parts are inspected according to IDEA Std-1010-B. Essentially, we conduct rigorous testing in our laboratory to ensure the parts you receive, whether electronic or electromechanical, are reliable.
PCE has been working with the best and most reliable suppliers for over 20 years.
However, the benefits associated with the open market are much more significant than the risks.
Is there a cost savings in purchasing parts outside of specialized distributors?
Absolutely. For example, parts with a date code older than 3 years usually offer significant savings. This may not be the case for hard-to-find obsolete components, but for overstocked parts, it's a great way to save money.
It's become common for buyers to require parts to have been manufactured within the last two years. What are the disadvantages of limiting purchases based on the date code?
Well, first of all, it's important to note that parts with older date codes will function perfectly as long as they've been properly stored according to Jedec guidelines. At PCE, we ensure that parts are stored properly; MSL1 parts with appropriate moisture barrier bags and MSL2+ parts with appropriate moisture barrier bags, desiccant, moisture indicator cards, and vacuum-sealed. And of course, if in doubt, parts can be tested by a third-party laboratory.
In fact, at PCE the oldest parts we have sold that are still working were produced in 1977, the year I was born.
Additionally, limiting purchasing to recent date codes comes with disadvantages such as increased costs, supply chain vulnerabilities, missed sustainability opportunities, and reduced flexibility in procurement practices.
What do you think is one of the biggest advantages of the open market?
Sustainability is one of the biggest advantages. Parts sitting on shelves and not being used in production are a significant cost and problem for almost every OEM. Purchasing and exchanging these readily available parts defines sustainability, which is perhaps more relevant in today's world.
How does PCE intend to address the associated challenges?
Annie Maples: At PCE, we want to provide our customers and future customers with access to savings and quality. We have an in-house testing laboratory and extensive experience in purchasing on the open market for over 20 years, starting in 2001. We can guide you through the purchasing process confidently, step by step.
Learn more about our in-house testing lab here.
Feel confident buying on the open market with PCE!
PCE offers you the option that best suits your needs, whether it's purchasing OEM , in-stock parts, or ordering new parts. The term OEM refers to "Original Equipment Manufacturer."
Contact us and one of our experts will be happy to assist you!
