What Is the New AS6081 Standard?

SAE recently released the new AS6081 Standard, otherwise defined as Fraudulent/Counterfeit Electronic Parts: Avoidance, Detection, Mitigation, and Disposition – Distributors.

So what does all that mean?

The new AS6081 is a quality standard designed to provide an even higher level of protection against counterfeit components for customers in the aerospace/defense industry and the global supply chain.

This new standard released by the SAE International G-19 Distributor Committee allows electronic component distributors in high-reliability markets to:

• Help identify reliable sources to procure parts through supplier/vendor management 
• Evaluate/mitigate risk of fraudulent/counterfeit parts being distributed
• Assist in controlling suspect or confirmed fraudulent/counterfeit parts
• Properly report suspect and confirmed fraudulent/counterfeit parts to other potential users and Authority Having Jurisdiction

Those of you who have read any of our blogs know how seriously Converge takes quality and counterfeit prevention. In fact, we are constantly evaluating and improving our processes and procedures to ensure that we are procuring electronics components of the highest quality. Every component that passes through our facility must go through a rigorous quality inspection process. So, what better way to prove to our customers how committed we are to quality, security, and continual improvement than to seek certification in the new AS6081 Standard?

In January, Converge completed one of the first AS6081 implementation training sessions sponsored by SAE International in preparation for the certification audit.

The training session provided detailed information on AS6081 requirements and included topics such as:

• Overview on the rise of counterfeit components in the supply chain
• The certification process
• How to incorporate this standard into current quality management systems
• Identifying various AS6081 test methods
• Developing a plan for implementation and compliance

Although the official date for when the accreditation and certification bodies will be ready to begin conducting the audits is not known, it is expected to be sometime later this year. In the meantime, Converge has been busy preparing for this extensive audit to ensure that we are fully compliant well in advance. Our goal is to obtain AS6081 certification at the earliest date possible from the accreditation and certification bodies when they become authorized to perform the audits to the standard.

This is yet another level of quality reassurance that we can provide our high-reliability customers in the electronic components supply chain.

For more information on our certifications and the AS6081 Standard, contact us.

Converge Enhances Q-Trade with Pathfinder

If we stop and think about how many programs and systems companies utilize to conduct business on a daily basis, it would make sense that they should all be working collaboratively to provide the highest caliber of service to its customers.

Procuring electronic components and managing surplus inventory in the independent market are already involved enough without having to worry about whether the systems a company has in place are accurately and effectively working together to your benefit.

Unfortunately, smaller, independent distributors and brokers may consider this type of system a luxury rather than a necessity. However, larger established independents realize that in order to maintain a competitive advantage in the global marketplace any system implemented should be accessible online in real-time, fully integrated, and in most cases, global.

In a previous blog post, we introduced readers to our Consignment Visibility Tool, which is only one component of Converge’s robust data management and analysis system, Q-Trade. Q-Trade is a proprietary, globally integrated system that provides our sales team efficient and timely data to meet our customers’ demand and supply chain needs. Q-Trade, consisting of a Global Visibility System (GVS), Master Parts Reference (MPR), Converge AutoMatchTM, and a Consignment Visibility System (CVS), has now added the benefits of “Pathfinder” to its list.

Pathfinder is a tool that identifies the best transactional opportunities in the marketplace for our customers by expanding different data sources used to match the supply and demand of electronic components. It uses automated analytics that simplify and improve our sales process while helping to identify larger opportunities and additional cost savings, increase matching probability, and provide shortage solutions and surplus inventory mitigation for Converge’s customers.

Pathfinder essentially helps bridge any gaps to form better partnerships in the marketplace between suppliers and buyers through repeat business, shorter fulfillment times, more available supply, and increased visibility to stock in the marketplace.

Pathfinder provides Converge with a competitive advantage and increased transactional velocity with our customers, which is a definite win-win.

For more information on our globally integrated systems and the services we provide, visit our website or contact us at info@converge.com.

The Ins and Outs of Global Compliance and Logistics at Converge

Compliance and logistics are often said to be the backbone of an electronics distributor, especially one with an established global presence. Without these two important functions, companies buying and selling electronic components worldwide would be unable to fulfill demand and/or even compete for business.

But all companies exporting any kind of product are bound by and must comply with strict government regulations and compliance procedures. This requires not only experienced personnel and resources but also time to prepare/verify a product for export and ensure that it’s not being shipped to a sanctioned country or restricted party.

Some independent distributors, due to their size and limited capabilities, must outsource this function because it can be quite labor intensive and cumbersome to perform in-house.

However, Converge's global compliance and logistics teams are in-house, experienced personnel consisting of a Compliance Manager, Logistics Manager, Compliance Analysts, and Traffic Specialists. Our teams follow a stringent step-by-step compliance process for all electronic components imported and exported, which can begin even before the product is actually in the warehouse. This process can include:

• Verifying that the sales order has a value
• Screening customer/vendor accounts (ship to, bill to, and ultimate consignee) against restricted parties lists (RPLs)
• Identifying product classifications—obtaining the harmonized tariff schedule (HTS), local tariff number, and export control classification number (ECCN) for all line items being exported
• Confirming a license determination for each export transaction
• Verifying end-use certificate is on file and obtaining it if it is not 
• Following U.S. and in-country national export regulations and strategic goods control system when exporting from distribution hub outside the U.S.

The compliance process we have in place protects us and provides our customers with security while ensuring that each transaction goes smoothly without delays.

Once compliance has completed all the necessary steps, the order is released and cleared for processing through our logistics team, which must also follow a series of steps to prepare the product for shipment. These steps include:

• Verifying all shipping documents, including SO/PO, method of shipping (carrier/freight forwarder), agreed delivery requirements and providing compliance information to the customs broker
• Coordinating shipments with freight forwarders and negotiating competitive rates
• Approving additional freight-related costs (typically handled by the Logistics Manager)
• Logging shipments into the automated export system (AES) when applicable
• Ensuring the proper packaging for utmost protection of the product

At the same time that our logistics team is preparing for shipment, our IDEA-certified Component Quality Engineers (CQEs) and Component Quality Specialists (CQSs) are following a quality management process whereby the product is put through a standardized multi-point inspection/shipping checklist, which can include up to 102 points, before leaving our possession.

Converge’s presence with global and regional hubs located in Peabody, MA (38K sq ft), Amsterdam (50K sq ft), Singapore (26K sq ft), and Hong Kong (7K sq ft) guarantees our customers efficient deliveries, local standardized inspections (regardless of where the product was procured from), and the highest packaging standards that go way beyond the minimum industry standards.

Our compliance, logistics, and quality/warehouse teams in each region are experienced, committed, and ready to fulfill any order. That’s the kind of assurance expected from an independent distributor and one of the reasons why customers keep partnering with us.

To learn more about our compliance and logistics services or global locations, please contact us at info@converge.com.

Global Converge Leaders in APAC: Meet Eric Wu

Continuing with our Global Leaders blog series, we introduce you to Eric Wu, Converge’s Global Business Leader in the APAC region. 

Meet Eric Wu, Global Converge Leader in APAC
 

 
Q: Tell us a little about what you do at Converge. Is there something that you specialize in for the company?

A: My title is Director of Sales in APAC for South Asia. My responsibilities include managing our regional sales team, daily sales activity and tactical operations. I work closely with my regional managers to support and strengthen each regional sales team, identify the potential markets and expand business.

Q: What region do you primarily serve?

A: I primarily serve South Asia, including Asean, Taiwan, Korea, Japan and India.

Q: How long have you worked at Converge?

A: I have been with Converge a little over ten years. I spent the first five years in Shanghai and the past five years in Singapore.

Q: Tell us a little about your background. What career path led you to Converge?

A: I joined Converge in OEM sales in Shanghai ten years ago. I am very lucky to have had the opportunity to work in a few different roles while at Converge: seller, buyer, regional manager, commodity manager and now sales director. The experience has allowed me to study this niche market from several different perspectives. I would also like to mention that prior to joining Converge I was in charge of procurement with a local PC maker in China.

Q: What services does Converge offer in your region?

A: As a global company, we offer the same shortage, surplus and quality management services to all APAC clients as we do in EMEA and the Americas. We not only help our customers source those hard-to-find, end-of-life (EOL) and NPI parts to keep their production lines running smoothly, but we also provide custom-built solutions to assist in the disposal of their surplus materials. We do all this through our Converge platform and with our quality inspection process providing customers peace of mind.

Q: How does the APAC market differ (if at all) from the rest of the world? Do you focus more on any specific services or technologies?

A: Yes, the APAC market does differ a bit, mainly because it encompasses many countries with different cultures, languages and business etiquettes. Converge is able to address these differences through seven regional offices with local staff available to prospect and serve customers every day. Another difference is that Asian customers not only tend to be more sensitive to pricing, but they are also typically well educated about the electronics market.

Converge is at a great advantage to be able to source with our established presence in APAC. Our strong commitment to quality allows us to offer the same services and technologies worldwide.

Q: What else should our readers know about Converge? How can they learn more about our services in APAC?

A: The electronics industry is a fast-paced, growing and constantly changing market. APAC electronics companies are facing shortages and surplus concerns every day. Converge APAC is a leading independent distributor with the ability to provide customers one-stop total solutions, such as EOL and NPI sourcing, mass production shortage sourcing, and surplus inventory recovery solutions.

With a global footprint and an integrated worldwide network, Converge’s sourcing radar covers every corner of the globe, providing 24/7 seamless support.

Furthermore, Converge fully understands how important quality is to the customers and the supply chain. All the electronic products shipped by Converge must go through a stringent quality assurance procedure complete with on-site multi-point inspections.

Q: Anything else you would like to share? Tell us about your family, favorite hobbies, etc.

A: I am happily married, with a lovely daughter. I enjoy reading, watching movies and playing badminton in my leisure time. After moving to Singapore, I started jogging not only for the exercise but also because it allowed me to make so many new friends.

Thanks, Eric!

If you would like to talk to Eric about how Converge can help your company in APAC or to get some pointers in badminton, feel free to contact him at eric.wu@converge.com.

New Converge Podcast: Protecting Customers Through Quality Management

How does Converge protect its customers from receiving substandard components? That’s the topic of discussion in a new podcast titled “Protecting Customers Through Quality Management” which is now available on the Converge website.

All of our customers are secure in knowing that partnering with Converge for their electronic component needs provide them peace of mind. But, how exactly does Converge provide that assurance?

In this new podcast, we will be talking with our quality experts Ron Wiggins and Dwight Gerardi about why it’s so important to partner with an independent distributor that has an established quality inspection program, some of the risks involved when you don’t, and you’ll even get a glimpse on how the quality management program actually works at Converge. Ron and Dwight will discuss their roles at Converge as well as our commitment to quality improvement and the type of equipment used.

They will also answer questions about what goes into our step-by-step inspection process and what happens if a discrepancy is found in a component. Protecting our customers and the supply chain from substandard parts is something we strive for every day and in every single transaction. It’s what we’ve built our reputation on and sets us apart from the competition.

To learn more about how our quality management process helps protect our customers and the supply chain listen to “Protecting Customers Through Quality Management”.

Global Converge Leaders in APAC: Meet Cannie Kok

In our continuing blog series we introduce you to Converge’s Global Business Leaders in the APAC region.

Meet Cannie Kok, Our Global Converge Leader in APAC

Q: Tell us a little about your role at Converge. Is there something that you specialize in for the company?

A: My title is Director of APAC Commodity & Purchasing at Converge, which is where my expertise lies. My responsibilities include managing and supporting a team of five commodity managers who handle all the purchasing and commodities in the APAC region. The commodity managers are divided up by different product groups-GEN IC, MEMORY, CPU, and technology products.

Our commodity management team utilizes industry experience and intelligence to locate and procure electronic components from sources throughout Asia in order to support our global sales team.

Q: What region do you primarily serve?

A: I primarily serve the APAC region, but I also work globally with our Amsterdam (EMEA) and Peabody (Americas) headquarters.

Q: How long have you been with Converge?

A: I am pleased to say that I have been working for Converge since 2003, so close to 10 years.

Q: Tell us a little about your background. What career path led you to Converge?

A: All my special training comes from past work experience in various industries. I have over 20 years of experience in planning and purchasing in the electronics industry for original equipment manufacturers, contract manufacturers, and franchised and independent distributors.

Prior to my career at Converge, I worked for several multinational companies such as Conner Peripherals (acquired by Seagate), Maxtor Peripherals (acquired by Seagate), NatSteel Electronics (acquired by Solectron), and Avnet, Inc.

Q: What services does Converge offer in your region?

A: Converge is a global company, so we are able to offer the same full suite of services as we do in our Americas and EMEA regions: procurement of parts for shortages, surplus inventory management, and an industry-leading quality management program.

Q: How does the APAC market differ (if at all) from the rest of the world?

A: I believe that there are some differences. I think the main differences between the APAC market and the rest of the world is our culture and the fact that Asia has been known to manufacture some of their own product brands at times.

There are also more languages and varying country regulations in the APAC region which we need to be well versed in to conduct business appropriately. This means that each transaction has to be handled differently to meet specific customer requirements and adhere to local laws and regulations.

Q: Is there anything you would like to share/brag about that readers might not know?

A: I would like our readers to know that Converge has established relationships with reliable suppliers globally, especially in Asia, and that our rigorous quality inspection process enables us to provide the best quality products in the least amount of time 24/7. And because of the concerns regarding suspect parts entering the supply chain, we need to be extremely careful whom we acquire supply from.

That is why our dedication to continual quality improvement and our vendor management program are key in helping reduce the risks of suspect products entering the supply chain, especially during a shortage market. Moreover, our vendor management program allows us to continuously monitor and carefully screen all our suppliers, providing our customers peace of mind.

Q: Anything else you would like to share? Tell us about your family, favorite hobbies, etc.

A: I am happily married with three loving children. I am blessed to have my family’s support despite my heavy commitment at work. I am passionate in learning about new technology products. I love shopping, traveling to different places, and experiencing and learning about various cultures. I also dabble a little in interior design.

Thanks, Cannie!

If you would like to talk to Cannie and learn more about how Converge can help your company in APAC, please feel free to contact her directly at cannie.kok@converge.com or visit the Converge website for our full list of services and global office locations.

Global Converge Leaders in EMEA: Meet Bobby Ireland

In this blog, we continue our ongoing series introducing you to the key Converge global business leaders.

Meet Bobby Ireland, Director of Global Business Trade Operations

 
Q: Tell us a little about your responsibilities at Converge and how long you have worked here.

A: I have been with Converge for about ten years. I am responsible for the overall coordination of global strategic accounts, business operational reporting, programs and processes as well as a number of corporate and regional support areas such as Global Account Management. As a former EMS guy I am able to bring a lot of structure into what I do for Converge, ensuring we can track, report and take advantage of key impact areas.

Q: What region do you primarily serve?

A: I am based in the United Kingdom, so my main role is within EMEA, but I am also responsible for a majority of corporate and global activities with global accounts and my colleagues in Peabody, Massachusetts.

Q: Tell us a little more about your background and what career path led you to Converge.

A: After graduating from the University of Abertay in Dundee, I immediately went to work for Solectron, which at the time was the world’s largest EMS. They just happened to have a huge site in my home town of Dunfermline, Scotland. During the six years I worked at Solectron, I did some work with Converge for the materials group. A few months later I joined the organization.

Q: What services does Converge offer in your region?

A: Since Converge is a global company, we have all of the same service offerings in EMEA as we do in the Americas and APAC. So anywhere the customer is located, we can provide shortage, excess, and obsolete inventory solutions, all backed with an industry-leading quality assurance program.

Q: Do you focus more on any specific services or technologies?

A: My focus is in three main areas. First, I coordinate and help manage the corporate relationships for global strategic accounts in the region. My involvement depends upon the level of business and their footprint. For these customers, I support contract discussions, attend quarterly business reviews and manage and monitor performance and trends.

The second area of focus within the same strategic business is global responsibility for several accounts — I serve as the main contact to our parent company for their global business.

The third area is business operations reporting and tracking, which we use extensively in EMEA and globally to manage our overall business. This area includes metrics reporting, commodity focus, vertical tracking, regional trends and penetration, etc.

Q: How does the EMEA market differ (if at all) from the Americas?

A: I see Europe as much more of a melting pot, with many differing cultures, languages and areas that need to be considered.

Take, for example, the Israeli and German markets. Converge needs to have offices in these regions to fully serve these markets. And within these offices we need the right people with the right skill sets and relationships who have the ability to help us develop the market.

Europe also has very defined markets — the United Kingdom has a very small to medium-sized business centered mainly around high-margin verticals such as Medical, Military and Automotive.

Central Europe (now moving into Ukraine/Russia) is considered to be the lower-cost region, holding most of the medium to high volume in Europe.

Germany and the Nordic countries have a large base in Computers, Telecommunications and Embedded accounts. These points, factored with the cultural and language diversity, make the EMEA market challenging.

Q: Is there anything you would like to share or brag about that readers might not know?

A: I would like to reiterate Johan Dahl’s comments from his recent blog interview: Our quality assurance program is what differentiates us most from the competition. We have made, and plan to make, further investments into our integrated systems and quality-testing equipment. And our dedication to continual improvement won’t stop there, as we strive for higher levels of certifications to capture a larger base of high-reliability customers.

Our customers can see for themselves that, in comparison to the rest of the market, Converge can back up their quality standards, while others only talk about it.…..

Q: How can readers learn more about Converge services in EMEA?

A: We have a great footprint in EMEA, with plans to expand further. Our goal is to service the primary markets in EMEA, with Converge regional offices or personnel close to the physical locations of our customers.

I would encourage any customers to discuss any aspect of the market with us, to gain a better understanding of what we can do to support them.

The “broker” market is not what it once was — we are now a long-standing independent distributor and strategic partner to our customers.

Q: Anything else you would like to share? Tell us about your family, favorite hobbies, etc.

A: I am married. I met my wife, Jennifer, during my time at Solectron and we have our young son, who keeps us more than busy. The less said about my local and national football teams the better, although my colleagues in Peabody, Massachusetts, might just convert me to be a New England Patriots and Boston Bruins fan if things keep going as they are.

Thanks, Bobby!

If you would like to talk to Bobby about how Converge can help your company (or would like to discuss hockey and football), you can contact him at bobby.ireland@converge.com.

2012 Customer Satisfaction Survey Results Reflect Positive Feedback

A few months ago, Converge conducted its annual Customer Satisfaction Survey, which many of you, our customers, received. For those who participated, we would like to thank you for taking the time to provide us with valuable feedback. Your comments and suggestions allow us not only to measure our processes but also to improve on our performance and services as an independent distributor.

It’s no secret that the majority of our customers rely primarily on franchise/authorized distributors for their supply chain needs, but like everything else, the market has its ups and downs — and that’s when Converge steps in with our market intelligence and global logistics. As an established independent distributor, we are able to source electronic components from reputable vendors around the globe as well help you recover value from your inventory in times of excess.

No wonder our customers ranked “ability to locate product” as the number one motivating reason to partner with Converge. And why a majority of our customers said they would continue to partner with us for their component shortages needs first and surplus inventory second.

In addition, our customers indicated they were satisfied with Converge’s overall performance, our knowledge of product(s), and their sales experience with us. But most importantly, they were pleased with the level of quality we provide making our quality inspection process still the most important factor when choosing to partner with Converge.

So we asked our customers more specifically about our quality inspection process, and once again the feedback was very positive: The quality of product, whether customer requirements were met, accuracy of orders, and communication/reporting were overwhelmingly better than or as expected.

Even though Converge continues to receive praise for our market expertise, sales process, and quality management programs, we are still of a firm belief that there is always room for improvement.

And as pleased as we are with the results from the survey, we will always be committed to the continual improvement of our processes and services year after year. No distributor is perfect, but that being said…we will be looking into areas where we can not only excel, but also offer our customers additional value-added benefits.

For more information on the Converge’s suite of services, visit our website.

Converge Implements 5S to Optimize Quality and Efficiency

If you’ve read the Converge blog before or have ever been to our website, then you probably already know that quality is a big deal to us. In fact, it is one of the key tenets of who we are as an organization. We help electronics manufacturers and service providers solve shortage and excess inventory problems, AND we do it with a component quality assurance process that is second to none. Every order we buy or sell must come to a Converge facility for a thorough quality inspection and, if needed, advanced in-house testing services such as X-ray and decapsulation. So it is extremely important to us that our warehouses – where all receiving, inspection, testing, and shipping activities occur – operate as safely and efficiently as possible. 

That is why we are excited to tell you that Converge adopted the “5S” workplace organization method earlier this year. The 5S method, closely tied to Lean Six Sigma and popularized by the Japanese automotive industry, enables a company not only to optimize a workspace for efficiency but also to put a culture into place that sustains these improvements. The name stems from the fact that the five primary phases all start with “S”: sort, straighten, shine, standardize, sustain. Starting in June 2012, our warehouse teams began to seriously evaluate their work spaces and list opportunities for improvement in each of these areas. We asked ourselves questions like “Where should tools be stored in order to make sure they are in the right place at the right time?” and “How can we arrange the equipment in this workspace to reduce the number of steps needed to accomplish a task?” Did we feel we had strong processes in place before? Yes. But that didn’t mean there wasn’t room to make them even stronger. 

Six months later, we are proud of what we have accomplished so far. If you were to walk through our warehouses, you would see our 5S scorecards posted in each work area. Scoring of the identified action items is done on a weekly basis by our internal audit team. Each week, these auditors identify new opportunities for improvement, which are discussed and delegated at team meetings. We have found that even little tweaks and changes are translating into significant efficiency improvements in hours and throughput. In addition, the 5S method has created a culture in which our employees are always looking for ways to improve rather than slipping into complacency. With improved efficiency and a heightened culture of awareness, we feel more confident than ever that we can provide Converge customers with a counterfeit detection program that provides them not only with the parts they need but also with peace of mind. 

If you would like to see our 5S process in action, we would be happy to give you a tour of one of our facilities – and show you our testing and inspection process while we’re at it. Just drop us a line to start the conversation.

Five Reasons to Partner with Converge in Brazil

Millions of consumers in Brazil’s emerging middle class are now entering the market for personal computing and related technology. In addition, the upcoming World Cup (2014) and Summer Olympic Games (2016) have spawned the investment of billions of dollars in infrastructure. If you are a technology manufacturer or service provider, you are likely exploring ways to capitalize on such opportunities in a competitive marketplace. Converge can help you realize your goals.

Connecting the dots between global component inventory and end-user demand is at the core of what we do. So whether you are a manufacturer looking to recover value from excess inventory or are looking for a reliable supplier with Tier-1 pricing, Converge is a global market leader.

Here are five good reasons to partner with Converge in the Brazilian electronics market:

1. Converge is a proven and reliable supplier to the Brazilian market – and has been for over 20 years.
2. Converge provides access to unique channels of supply. Our strong global presence allows you to expand your purchasing power far beyond national borders.
3. Converge has the ability to import to Brazil through partnerships in Sao Paulo, for those who do not have an import license.
4. Converge has experience with many of the Brazilian customs regulations and the associated paperwork. Doing it right the first time may save precious time and money.
5. Selling and exporting excess inventory to Converge allows you to not only recover value from aging inventory, but it also may allow you to reclaim a portion of the importation tax.

If you are currently in Brazil or are looking at entering this growing market, contact us. We’ll review your current situation and outline potential opportunities for your organization.