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The Quality Equation: Balancing Cost, Time and Reputation in Electronics Distribution
Aug. 1, 2024
Quality in electronics distribution is not just about product performance. Poor quality is also expensive, slows down time-to-market and can tarnish brand reputations. When customers learn that the products they’re using haven’t been thoroughly tested for quality—or, that they fail once installed—they’ll switch brands quickly.
By focusing on quality, companies can mitigate risks, enhance their competitiveness and keep their customers happy. These “wins” are especially critical in industries where safety and reputation are paramount. In automotive, medical and aerospace and defense, for instance, organizations simply can’t afford to drop the ball on quality.
For example, when the EPA charged Volkswagen with installing software in their diesel-powered cars that allowed the vehicles to cheat on emissions tests, the ensuing “Dieselgate” scandal cost the automaker over $30 billion in fines and damages—the largest in the history of the automotive industry. The huge fines and reputational damage shook the veteran auto brand to its core.
Cost, Time and Reputation
Product quality is critical for three main reasons: cost, time and reputation. Fusion Worldwide and Prosemi, Fusion’s ISO17025/AS6171 accredited in-house testing center, understand this, and they differentiate themselves by focusing on vendor management, rigorous qualification processes and maintaining strong relationships with vendors.
“If a product fails, there could be a tremendous cost associated with mitigating that failure, particularly if circuit boards fail while on the production line,” says Paul Romano, Fusion Worldwide's COO and Chief Quality Officer. “The manufacturer will have to pull all of the boards off of the line, rework them and then try again.” Those boards can only be reheated so many times, and if that threshold is reached then the situation will become even more complex and expensive.
If a poor-quality product prevents delivery of a customer’s order, that delay can also impact the customer’s own production line. These impacts can radiate across entire supply chains, all because one batch of poor-quality electronics made it onto the production line. In other cases, that customer may cancel the order and buy from another vendor, which in turn directly impacts the first supplier’s bottom line.
Fusion Takes Product Quality Very Seriously
Along with its extensive testing technologies and resources, Fusion Worldwide also has a workforce of more than 35 degreed engineers (all of whom experience an 18-month quality control apprenticeship program), a rigorous supplier qualification and management process and a sharp eye for recognizing potential risks, safeguarding its customers' brand reputation and supporting uninterrupted production processes.
Fusion Worldwide’s experienced engineers use an intensive inspection process to ensure that all the products it sells are of the utmost quality. Prosemi’s in-house testing capabilities and certifications, including an ISO17025/AS6171 accreditation, provide the best in quality services, authenticity testing and turnkey projects for various industries.
Your Customers & Employees are Paying Attention
Today’s customers pay attention to quality and know that the next buying opportunity is just a mouse click or screen tap away. In fact, one Trustpilot survey found that reputation was the number one factor for customers deciding whether or not to use a business. Positive conversations about brands—both online and offline—helps those brands become the “go-to” trusted authority in their respective markets.
A bad reputation can also impact employee recruiting and retention. According to Status Labs, nearly 70% of prospective employees report that they would reject a job offer from a company with a bad reputation, even if they were unemployed. With the national unemployment rate hovering below 4%, and even lower for some industries, no company can afford to have poor quality standards driving off new recruits or alienating current associates.
And don’t forget that negative feedback and reviews can spread like wildfire online, where “keeping a lid on things” is no longer an option. By working proactively to ensure high levels of quality, avoiding faulty products and keeping counterfeit electronics out of their supply chains, companies can maintain clean reputations, avoid product failures, recalls and hefty fines and keep their customers coming back for more.
Fusion Worldwide is the preeminent open market distributor of electronic components and products. The company sources, inspects, tests and delivers a broad range of components to a large and diversified customer base that includes OEMs, CMs and ODMs across a wide array of verticals. Founded in 2001, Fusion is headquartered in Portsmouth, New Hampshire, and maintains offices and quality centers in major manufacturing centers around the world.
For more information visit fusionww.com, or follow Fusion Worldwide on LinkedIn, Facebook, Instagram, WeChat and X.
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