Due to the transient nature of the spot market for electronic components, a number of challenges are inherent to this aspect of the industry. None of these challenges are impossible to overcome. They include transactional velocity, quality control, protection against counterfeits, protection against fraud, and honest sourcing avenues.

Transactional Velocity: Lead time or transactional velocity is of prime importance for high-tech companies. This is true whether you are purchasing or selling electronic components. Buying or unloading the components you need within this critical market is essential to your ability to grasp a strong share of the market. If too much lead time occurs, the opportunity to maximize on inventory can evaporate swiftly. Market trends vacillate so swiftly that often prices are adversely affected, leaving companies with less profit for the value of the components.
Quality Control: Since counterfeit parts have been a problem for years, quality control is essential to a company’s success, particularly when dealing with excess inventory or obsolete parts that may be difficult to come by in the first place. Faulty parts and counterfeit components congest supplies forcing suppliers to implement extensive quality control methods to authenticate products. Purchasers of electronic components need to ensure that their sourcing supplier maintains a strict policy of integrity leading to the supply of non-counterfeit products 99.9% of the time.
Protection Against Counterfeits: Fraud is inherent in certain types of transactions. Therefore a need exists to establish a long-term relationship with your open market supplier in order to safeguard your company’s viability and success.
Protection Against Fraud: Financial fraud is close on the heels of counterfeited parts with the damage that it can inflict to a company’s financial stability. While this is true in any market, the electronics component market must stand on guard even more so due to the sensitive need for swift transactions. Wire fraud and insufficient checks are prevalent and companies must protect themselves against this type of commercial fraud when extending credit to unknown sources.
Honest Sourcing Avenues: Due to the prevalence of counterfeit and faulty electronic components, the importance of locating a reliable, honest sourcing company is essential to the financial health and future growth of your company. Once a trustworthy sourcing agent has been located, establishing a working relationship with that company will not only open the door to safe, swift, quality transactions but it will also open the door to profitable future opportunities.