A monthly newsletter for members of the Electronic Components Industry Association

I N S I D E T H I S I S S U E : T O T H E P O I N T P 2 A F D E C S TAT I S T I C S P 8 E V E N T S P 1 2 C o N TA C T S P 1 2

A U G U S T 2 0 1 2

INSIDEExecutive Conference 4Advocacy & Promotion Council 5Compensation Survey 6 Social Media 6 Marketing Awards & Video Competition 7New Members 7 Monthly Order Index 9Prescription Medication Benefit 9Business Auto Risks 10 CARTS International 2013 11

Electronics distributors say they were not surprised by a recent analysis by an industry researcher that found that 57 percent of counterfeit parts that were reported over a 10-year period involved obsolete or end-of-life semiconductors and other components.

The analysis by researcher IHS said that from 2001 through early 2012, 37 percent of reported incidents of counterfeit parts involved components that were still in production, while 57 percent were obsolete or end-of-life (EOL) parts. The reported incidents of bogus parts involved millions of chips and other components circulating in the supply chain, according to the researcher (see box on page 3).

Electronics distributors said while the findings of the report were disturbing, they were not surprising.

“The issue of counterfeit parts is just a symptom of a supply/demand imbalance,” said Tyler Moore, director of supply assurance at Arrow Electronics, headquartered in Melville, N.Y. “Obsolete parts have the highest degree of demand and supply imbalance and because of that imbalance, counterfeiters move into that space,” he said.

Imbalance occurs because some end products such as defense and aerospace systems and medical equipment have very long lifecycles while critical components used in those systems have much shorter lifecycles. In addition, some parts used in those systems have single sources or few sources.

Ken Manchen, director of environment & safety for Newark element14, based in Chicago, said obsolete parts are a “prime market for counterfeiters because the lifecycle of electronics components is shorter than ever especially in the defense industry.” “Military systems are designed to last a long time and operate in extreme environments,” he added. However, because the volumes of parts used in military systems is relatively low, semiconductor and component suppliers cease making the parts long before defense contractors stop making the systems. “Those parts tend to be high-performance, expensive parts,” said Manchen. “Defense contractors are eager to find these parts” so it is an opportunity for counterfeiters.

M o s t C o u n t e r f e i t P a r t s I n v o l v e o b s o l e t e S e m i c o n d u c t o r s a n d o t h e r E o L C o m p o n e n t s

By James Carbone

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Ken Manchen, Newark element 14

Tyler Moore, Arrow Electronics

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To T h e P o i n t : D i s t r i b u t o r A u t h o r i z a t i o n H a s B e c o m e A H o t To p i c

Distributor authorization has become

a hot topic within the electronic com-

ponent supply chain. Customers and

government are becoming increasing-

ly aware of the importance of buying

electronic parts from an authorized

source (i.e., directly from the OCM or

from an OCM’s authorized distributor)

to reduce the risk of buying counter-

feit products. As a result, efforts are

underway to define and verify what

constitutes authorization.

ECIA is intimately involved in this effort, given that the association’s

mission is “to promote and improve the business environment for the

authorized sale of electronic components.” The association defines

an authorized distributor as a business that has been contractually

authorized by the component manufacturer to resell its products. As

it turns out, this definition is also becoming the de facto definition

for everyone.

The real issue is verification of authorization. While the answer seems

straight forward—confirmation by the manufacturer, the practical re-

ality is that some component manufacturers make this a challenging

endeavor.

SAE’s G19 Counterfeit Electronic Parts Committee is working on sev-

eral standards that either define or use the term “authorized distribu-

tor.” One of the current issues before a G19 Subcommittee is verifica-

tion of authorization. This is the proposal under consideration:

When the Organization has quoted parts to the Customer as having

been sourced from Authorized Distribution, Organization shall re-

quire Suppliers to disclose at the time of each individual quotation,

objective evidence (either proof from the OCM’s website or letter

from the OCM) that the Supplier is authorized (franchised) for the

item(s) being quoted and is or is not providing full manufacturer’s

warranty on the quoted material.

ECIA supports the portion of the proposal regarding “proof from the

OCM’s website,” but believes that “or letter from the OCM” is impracti-

cal. First, a letter could be easily counterfeited. Second, OCM’s would

face an administrative burden of providing a letter every time there

is a quotation. In all likelihood, customers would submit their own

forms for verification. Consequently, ECIA opposes the letter proof

portion of the G19 proposal.

Having customers go to the OCM’s website appears to impose the

lesser administrative burden, quickest response time and lowest risk

of counterfeiting. However, it is incumbent upon component manu-

facturers to improve their websites to make it easy to find their list of

authorized distributors and to keep this list current. The OCM web-

site should state what in regions a distributor is authorized to sell its

products. Finally, OCMs should also make it clear whether distribu-

tors that acquire product through a buying group and/or master dis-

tributor are considered authorized for purposes of product warranty

and support, as well for purposes of customer verification.

ECIA has a task force that is considering a number of proposals re-

garding distributor authorization, including a possible certification

process. In addition, the association operates www.eciaauthorized.

com as the industry’s only unbiased inventory search website that

only features authorized components. Finally, the association recent-

ly tightened its criteria for distributor membership by requiring 100%

of a member’s published line card to be authorized.

R o b i n G r a yE C I A P r e s i d e n t & C E O

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A wide variety of parts are counterfeited, including microprocessors, memory ICs, field programmable gate arrays, application specific integrated circuits and even application specific standard products, connectors and some passives.

“You don’t see a lot of counterfeiting around commodity logic or commodity analog parts because there is no money to be made,” said Moore.

Sole-source parts are risky

Chris Gerrish, co-president of Rochester Electronics in Newburyport, MA, said any type of sole-sourced device is prone to be counterfeited but “multi-sourced products, not so much. If it is sole-sourced device it is much rarer and there’s less inventory available within the industry and counterfeiters can get a high price.”

Sometimes counterfeiters will make counterfeit parts that may have some functionality, but don’t meet the specifications of the genuine parts. In other cases, parts are taken from boards and re-marked as the parts buyers are looking for. Sometimes parts may be stolen from a legitimate fab and sold on the open market. Parts may not be handled correctly and could be damaged and not perform up to spec.

In some cases, a chipmaker may manufacture a batch of parts and discover in testing that the components don’t meet specifications. The semiconductor company may hire a firm to scrap the parts, but the parts are not destroyed and are sold into the gray market as authentic parts.

Moore said it is easy for counterfeiters to determine which obsolete parts are in high demand. He noted that buyers looking for hard-to-find parts often post those parts on e-auction sites hoping to find a supplier. Counterfeiters monitor such sites. “They (counterfeiters) will see where the most hits are on the auction site and stamp some parts with the part number” the buyer is looking for, he said.

Counterfeiters look for “the real sweet spot where manufacturers are having trouble keeping up with demand,” said Gerrish. “They (counterfeiters) can operate very quickly. We’ve seen a lot of reports where they can get these counterfeit products out as quickly as a week.” Gerrish indicated many of the bogus products are moved through various brokers around the world and there is no traceability.

Problem gets worse

Ed Smith, president of Avnet Electronics Marketing, Americas, based in Phoenix, said the problem of counterfeit parts - both

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Twelve Million Counterfeit Parts Were Reported Over Last Five Years

Researcher IHS recently analyzed electronics industry data concerning counterfeit parts that were reported from 2001 until early 2012. Here are highlights of the analysis:• More than 12 million counterfeit parts have been reported over the last five years.• Fifty-seven percent of counterfeit part reports involved obsolete or end of life parts.• With bills of materials that contain as much as 30,000 parts, 10 percent or more of the parts are obsolete.• Nearly 37 percent of counterfeit parts involve components still being produced by manufacturers.• A single incident of a counterfeit part can cause up to 64 weeks of production line downtime and cost up to $2.1 million to resolve.• Companies are at more risk of buying counterfeit parts following a disaster that disrupts electronics production. After the earthquake in Japan last year, 40 percent of electronics companies said they increased their purchasing on the open market. Counterfeit parts are often sold on the open market.• Most counterfeit parts involve obsolete semiconductors and other EOL components.

obsolete and parts still in production - is getting worse. He said in many instances counterfeit parts are not reported once they are discovered.

“People are embarrassed to report it. They don’t want everybody to know they bought counterfeit parts,” said Smith. While the number of incidents of counterfeit parts is underreported, more people are reporting fake parts than in the past. Smith said counterfeit parts are a major issue in regulated industries such as defense/aerospace and medical.

He said there’s no easy answer to stopping the spread of counterfeit parts.

“Part of the solution starts all the way back in engineering,” he said. “It involves engineering parts that are going to have longer life cycles and not engineering a part that will have very few customers.”

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Ed Smith, Avnet Electronics Marketing, Americas

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Conference Sponsors:

2 0 1 2 E x e c u t i v e C o n f e r e n c e P r o g r a m A n n o u n c e d“ I n f o r m a t i o n + A p p l i c a t i o n = I n n o v a t i o n ”o c t o b e r 2 8 - 3 0 , C h i c a g o

The speaker roster for the upcoming 2012 Executive Conference is set and features an extensive lineup of industry leaders, innovation experts and marketing professionals.

Presenters will offer tactical strategies for utilizing information, engaging your team and encouraging business innovation. This annual conference is well known as the industry’s premiere educational and networking meeting. ECIA will welcome the following speakers:

• Glenn Bassett, IHS• Guy Blissett, IBM Global Business Services • Frank Cutitta, The Center for Global Branding• Jon Dudas, FIRST • Jim Forbes, Pricewaterhouse Cooper • Rick Hamada, Avnet• Gordon Hunter, Littelfuse• Terry Jones, Kayak.com• Frank Lange, Menlo Worldwide Logistics

Industry veteran Skip Streber will moderate a lively panel discussion on the topic of Demand Registration Solutions. The panel includes Chris Beeson, Digi-Key Corp.; Paul Doherty, TE Connectivity; Alex Iuorio, Avnet Electronics Marketing; Mark Lunsford, NXP Semiconductors; and Dave Norris, Norris & Associates.

This meeting provides a unique setting to focus on critical business issues and opportunities. Attendees receive the latest information from renowned experts and gain unprecedented access to industry leaders.

Make plans to participate Oct. 28-30 at the InterContinental Chicago O’Hare Hotel. Conference brochures will be mailed out by mid-August and you may download a copy. from our website. Click here for all details.

Check out the ECIA YouTube Channel to hear what our members have to say about this conference. If you’ve never attended, find out what you’re missing!

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ECIA is pleased to announce that the Advocacy & Industry Promotion Council has been seated and started work to build brand awareness within the membership, their customers and the industry at large.

If you have an interest in serving on the Council - we welcome your participation.

The Council will guide the association’s marketing efforts in the following areas:• Promoting the authorized sale of electronic components• Campaigning against counterfeiting• Promoting the ECIA brand and value • Driving adoption of ECIA’s deliverables, i.e. standards, statistics, and conferences

Partner Ad Program

The Council has developed advertisements available to all ECIA members at no cost and is currently negotiating reduced advertising rates for those ads with the major trade publications. You will be notified as soon as those plans are finalized. To kick off the program and build awareness, council members have donated ads from their own marketing programs to promote their membership in ECIA and support the authorized sale of electronic components.

We are grateful for the participation of the following council members:

Council Chair: Ian Basey, AvnetBoard Liaison: Blair Haas, Bud Industries Elisa Weber, Allied Electronics David Sandys, Arrow Electronics Tracy Stotts, Carlton-Bates Company Nathan Pray, Digi-Key Corp. Steve Nelson, Freescale Jim Harper, Harper and Two Larry Johannes, Mouser Electronics Joe Walker, Phoenix Contact Canda Carr, TE Connectivity Mike Hastings, Texas Instruments Paula Renfrow, TTI, Inc.

Contact Debbie Conyers at ECIA with any questions.

Promoting the real benefits of authorized sourcing

OEM design engineers also need to choose parts that have long product life cycles and multiple sources. Smith added distributors have a responsibility to help thwart the proliferation of counterfeit parts. “We have to continue to educate our customers and suppliers about the issue,” he said. Distributors also need to help customers in design. “We need to make sure the customer has multiple options” concerning parts that are selected “so they are not forced to go into the gray market.”

To stop the spread of counterfeit parts in the supply chain, distributors and component manufacturers say buyers should avoid sourcing parts from brokers or non-franchised independent distributors.

“The most important thing is to buy from an authorized distributor” or from the component manufacturer said Gerrish of Rochester Electronics. “It’s what buyers really should be doing all the time.” Independent distributors state they provide traceability of parts to the original manufacturer through documentation of the parts. However, such documentation is no guarantee that parts are genuine, according to Chris. “We’ve seen many times where the documentation itself is counterfeited. So a buyer may feel good that he has checked all his boxes and has proper documentation and a traceability trail, but how does he know that those documents have not been faked?” said Gerrish.

While buyers are frequently told to buy from authorized distributors only, in fact “buyers are regularly incentivized on purchasing price variance and inventory turns,” said Moore. “So they make rational decisions about end-of-life parts because they don’t want to drive up their inventory.” If they increase inventory levels by purchasing large volumes of parts that are going end of life their bosses will not be pleased. “And they don’t want to pay a lot more so they might go to the open market,” added Moore. Buyers’ bosses - including supply chain managers, chief operating officers CFOs and CEOs - need to deal with end-of-life parts in a more strategic way rather than in “a transactional, tactical fashion.”

According to Moore, “They need to evaluate end-of-life events in a much more weighted manner that considers how damaging it could be to an enterprise if it could not get a part or if it got a bad part.” The strategy should be “oriented around enterprise risk and not one that is relegated to buyers who are incentivized to make decisions that could hurt the company. That’s where the problem is,” said Moore.

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P r o m o t i o n C o u n c i l

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Connect with ECIA Via Social Media

ECIA helps you make valuable connections to industry peers and informative events.

• Join the ECIA Group on LinkedIn• Visit the ECIA YouTube channel and view what members have to say about the industry and the association.• Follow us on Twitter at #ECIA

P a r t i c i p a t e i n t h e 2 0 1 2 E C I A C o m p e n s a t i o n S u r v e y

The ECIA Statistics and Industry Data Council is conducting a Compensation Survey for Marketing and Sales personnel. This is an outgrowth of the survey once conducted by NEDA. The survey will include manufacturers, distributors and rep firms segmented by size of companies and total sales volumes. It provides access to key industry compensation data and helps you to effectively compare your compensation and incentive plan, training hours, turnover rate and other compensation practices with industry practices.

Please click here to review the information and indicate if you are interested in participating in the survey. Complete the information requested and then hit “Submit” to send the form to ECIA.

You may also review a pdf sample of a previous survey. There is a list of job positions (with descriptions) plus a field to list additional jobs that could be included in the Survey.

If your firm is interested in participating, please complete the form by August 31, 2012.

Compensation Survey DetailsAdministered by Industry Insights, a firm that specializes in providing high-quality survey research services and has administered previous ECIA (NEDA) surveys. Covers more than 25 sales, marketing, and management positions Compares compensation and incentive plans, training hours, turnover rates, and other compensations practices All data is aggregated and individual company data is not identified. Participant cost range: $250 - $3,500 based on size of company and sales totals. Abridged report available at reduced cost.

If you have any questions, email Bob Willis or call the D.C. area office at 1-571-323-0255.

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D e a d l i n e E x t e n d e d - A u g u s t 3 1 s t

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New Members - Welcome to ECIA

Alfa Electronics - Distributor MARL International Limited - Manufacturer Mornsun America, LLC - Manufacturer RAM Electronic Sales, Inc. - Representative SMD Inc. - Distributor WESCO Sales Group, Inc. - Representative

Click here for a complete list of ECIA Members

C a l l f o r E n t r i e s o p e n f o r t h e E l e c t r o n i c s C h o i c e I n d u s t r y A w a r d sCelebrate Excellence in Member Marketing ~ Entry Deadline August 31, 2012

One of the new categories to debut in the Electronics Choice Industry Awards aims to engage the “20-somethings” at your business. Have them submit a “YouTube style video” that demonstrates the career opportunities this industry provides.

Through the Education Foundation, ECIA works with a number of universities across the country that offer degree programs in industrial distribution, supply chain management and logistics. There is a need to showcase employment within the electronics industry as an exciting and profitable career path.

Your mission with this category is to have your “more youthful employees” submit clips that speak to why they started in the industry, what opportunities they see ahead or why someone else should consider working for a company like yours.

Let them be creative – let them sing the praises of your organization – let them tell it like it is in the best possible light! There is no need to make it a Hollywood production – this group can do wonders with their digital devices. The goal is to make it memorable and introduce the industry and your company to a young, educated group of potential employees. And to sweeten the pot, there is no charge to enter the competition in this category. And winners will get trophies and national industry recognition.

The call for entries for the Electronics Choice Industry Awards is now open with complete details available at www.eciawards.com. The entry submission deadline is Friday, August 31. The competition is sponsored by ECIA and UBM Electronics Group.

Contact Debbie Conyers at ECIA with any questions: dconyers@eciaonline.org

L i g h t s - C a m e r a A c t i o n !

The call for entries for the Electronics Choice Industry Awards (ECIA’s) is now open! The ECIA awards celebrate excellence in marketing by honoring ECIA members who have displayed exceptional branding and marketing programs in the past year. The competition is open only to ECIA member companies.

“ECIA is pleased to again have opportunity to acknowledge the marketing excellence of our members through the Electronics Choice Industry Awards. With UBM Electronics as a sponsor, our members will receive industry-wide recognition through expanded press coverage for their efforts,” said Robin B. Gray, Jr., President and CEO of ECIA.

Competition details are available at www.eciawards.com. The deadline for entry submission is Friday, August 31 at 5:00 p.m. PST. There is a nominal charge of $45 per entry and you may enter as many time as you’d like.

Award winners will be announced at the 2012 Executive Conference on Monday, October 29, 2012 at the InterContinental Chicago O’Hare. Contact Debbie Conyers at ECIA with any questions: dconyers@eciaonline.org

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A U n i t e d K i n g d o m Tr a d e A s s o c i a t i o n

S t a t i s t i c s F r o m T h e A s s o c i a t i o n o f F r a n c h i s e d D i s t r i b u t o r s o f E l e c t r o n i c C o m p o n e n t s ( A F D E C )

U n i t e d K i n g d o m S t a t i s t i c s f o r M a y

AFDEC Monthly Statistics: Average Daily Sales by Month

Sales in £k per day; ----- shows 3 month average

Each month AFDEC gathers statistics from its distributor

members and summarizes bookings, billings, inventory,

stock turn/earn ratio, debtors, gross margin, etc., split

down by semiconductors, passives and electromechanical

components and, where appropriate, into more detailed

sub-categories. These monthly statistics enable members

to check their own trends against those of the industry.

North American statistics are available through ECIA’s

Distribution Business Index.

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U n i t e d K i n g d o m S t a t i s t i c s f o r M a y

J u n e I n d e x Tu r n s N e g a t i v eS u m m e r o f 2 0 1 1 R e p e a t s I t s e l f

The monthly order index compiled by the Electronic Components Industry Association (ECIA) had downward movement as the uncertainty in world markets continued. The 12-month moving average, however, stayed flat as the summer doldrums may be in store for the components market.

ECIA’s monthly report consolidates order information collected in confidence from leading IPE component manufacturers. Bob Willis, ECIA executive VP/CTO, sees similar comparisons to last summer’s non-events.

“While the index compares similarly to last summer, there would seem to be more uncertainty in international and political markets in 2012,” says Willis. “It could be a problem in any one area would have a domino effect across a wide spectrum of economies. Governments and markets seemed to be playing a wait and see scenario.”

Prescription Medication BenefitECIA recently announced a new benefit program offered to your employees through Assurance. We encourage you to take a few minutes to see what these new benefits are all about.

Stop paying full price for prescription medications!

Gain direct access to a prescription discount network through the Enhanced Benefits Card (EBC) and save 10-70% on prescription drugs not covered by insurance or paid for through your HSA plan.

Members can use their benefit card at more than 60,000 participating pharmacies nationwide. There are no restrictions or limits on how many times the card can be used. EHB card members save on generic and brand name prescription drugs.

Get Started

Contact ECIA at 678-393-9990 to obtain your member password. Then visit the site to log in: http://ECIAonlinebenefits.com. You can view a complete list of pharmacy locations or call toll free 888-478-2000.

Member service professionals are available for phone consultation 24 hours a day, 7 days a week, 365 days a year.

For more information contact the EBC Help Desk at 866.921.7284.

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E m p l o y e e A u t o U s e : H o w To M i n i m i z e Yo u r B u s i n e s s R i s k s o n T h e R o a d

Like any business, you likely rely on a fleet to transfer your goods or to enable your employees to visit your customers. And like any business, you work hard to ensure a safe driving culture as a way to minimize risk.

Unfortunately, vehicle accidents are the leading cause of occupational fatalities in the United States. According to the U.S. Bureau of Labor Statistics, vehicle accidents account for almost one-third of deaths that occur on the job. Not only are these incidents costly in terms of medical and direct repair expenses, they also impact your bottom line by disrupting your operation. Additionally, they can damage your business reputation, affecting customer relationships and even your ability to hire new staff. However, no matter how skilled and attentive your driver, accidents still happen. Many variables can be beyond the driver’s control, such as the actions of other drivers, inadequate road and traffic signal designs, adverse weather conditions, and more.

And if that wasn’t enough, one often overlooked exposure is “non-owned fleet” or said more plainly, employee-owned and rented cars driven for business purposes. This article will focus on that specific exposure and offer tips for you to consider for lowering the risks associated with your business’ non-owned fleet.

Employee-owned and Hired Vehicles

The cost of owning and operating a fleet of company vehicles has led many businesses to augment—or fully address—their transportation needs by requesting employees to use their personal vehicles for company business. Whether attending offsite meetings or traveling to other company operations, riding in the comfort of your own car is becoming the norm. As well, renting vans or other vehicles for delivery of finished products, or picking up a rental car when business travel includes the airport has become a more common occurrence.

So with potentially many of your employees behind the wheel at the company’s request, and knowing that statistics prove this to be the leading cause of tragic workplace accidents, how can you manage this exposure? Consider the following:

Driver selection process: establish basic protocols for those you expect to drive on the company’s behalf and document them in a fleet safety program, such as:• Ensure they have a valid driver’s license.• Obtain motor vehicle reviews (MVRs) to check their record and conduct similar reviews annually.• Establish a list of drivers approved—and not approved—to drive personal or rented vehicles for company business.• Obtain copies of approved drivers’ personal auto liability policy; check to ensure the coverage is current and includes proper limits of liability (your agent can help you establish the minimums given your business circumstances).

Care and maintenance of employee-owned cars: observe any car being driven to ensure that it is properly maintained in accordance with the manufacturer’s instructions.

Driver training: establish expectations regarding training, driver behavior and accident reporting. This reinforces compliance standards for each employee authorized to drive on the company’s behalf.• Clearly communicate your expectations regarding safe driving through a documented fleet safety program that addresses matters such as the use of mobile devices while driving.• Offer written procedures for the selection of drivers allowed to use personal vehicles for company operations.• Provide training on accident reporting and provide an accident reporting kit.• Limit the use of personal vehicles; rely on this option only when absolutely necessary.

Hired or rented vehicles: the same safety practices should be applied when you lease, rent or borrow vehicles for company operations. In addition:• Ensure your employee drivers are familiar with the leased vehicle, including manual transmissions or oversized vehicles.• Remember that vans, light trucks and larger box trucks require additional driving skills. Match the vehicle to the properly trained employee driver.• Double-check whether a commercial driver’s license is required to drive a particular vehicle.• Ensure that the rented vehicle has been inspected. (Drivers should personally conduct a pre- and post-trip inspection of the vehicle.)

Summary

As with many business practices, you probably noticed that the common thread is communication—written policies and procedures, interviewing employee drivers to ensure they maintain the proper credentials, offering training and reporting tools, and ensuring those driving rented vehicles are capable and in some cases, properly licensed for the task. By revisiting your approach to handling employees driving non-owned fleet vehicles, you’ll ensure this often-overlooked exposure is properly in check—and positively contribute to your bottom line.

For more information about controlling your loss exposures, visit: www.onebeacontech.com and click on our Managing Risk section.

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C a l l F o r P a p e r sC A R T S I n t e r n a t i o n a l 2 0 1 3

CARTS International 2013 will bring its expertise in electronic component technologies for high temperature, high reliability to the center for oil and gas exploration applications - Houston, TX. The symposium will assemble industry experts from all regions of the world markets in one place to share and exchange technical expertise with manufacturers, users and academia in the electronics industry. It’s the greatest concentration of application-oriented technical information with more than 40 papers from leading engi-neers around the world.

The symposium will consist of technical seminars of topical interest and a variety of technical papers. The technical seminars are designed to train new engineers and update more experienced personnel.

Recommended topics for symposium technical papers are:

Applications• High temperature/reliability• Downhole exploration• Automotive/avionics• Telecommunications• Aerospace

Design and Construction• Integrated passives• Overvoltage devices• Chip resistors• Electrochemical

Materials & Processes• Dielectrics• Terminations• Coatings• Vacuum Deposits• Pb Free

Reliability & Testing• Failure mechanisms• Field reliability data• Test results• New test techniques

World’s leading technical conference for the passive electronic components industry Submission Deadline November 30th

Abstract Submission

Please submit a 200-300 word abstract that clearly describes the nature, scope, content and key points of the proposed technical paper. Abstracts must include the author’s name, affiliation, complete address, telephone number, fax number, and email address. Authors are encouraged to submit abstracts online at: www.eciaonline.org/CARTSInternational

Edit Your Abstract online

All information is recorded in a secure database. Authors are provided with password access to update or edit their submissions.

Authors may also submit abstracts by fax to +1 571-323-0245 or email: rwillis@eciaonline.org

CARTS International 2013 provides component engineers and designers with the latest technical and market intelligence on capaci-tors, resistors and other passive components from the elite in the industry. If passive components engineering and applications are your area of responsibility, this is the symposium for you.

Symposium Dates: CARTS International 2013 | March 25—28, 2013 | Houston, TX

E m p l o y e e A u t o U s e : H o w To M i n i m i z e Yo u r B u s i n e s s R i s k s o n T h e R o a d

Like any business, you likely rely on a fleet to transfer your goods or to enable your employees to visit your customers. And like any business, you work hard to ensure a safe driving culture as a way to minimize risk.

Unfortunately, vehicle accidents are the leading cause of occupational fatalities in the United States. According to the U.S. Bureau of Labor Statistics, vehicle accidents account for almost one-third of deaths that occur on the job. Not only are these incidents costly in terms of medical and direct repair expenses, they also impact your bottom line by disrupting your operation. Additionally, they can damage your business reputation, affecting customer relationships and even your ability to hire new staff. However, no matter how skilled and attentive your driver, accidents still happen. Many variables can be beyond the driver’s control, such as the actions of other drivers, inadequate road and traffic signal designs, adverse weather conditions, and more.

And if that wasn’t enough, one often overlooked exposure is “non-owned fleet” or said more plainly, employee-owned and rented cars driven for business purposes. This article will focus on that specific exposure and offer tips for you to consider for lowering the risks associated with your business’ non-owned fleet.

Employee-owned and Hired Vehicles

The cost of owning and operating a fleet of company vehicles has led many businesses to augment—or fully address—their transportation needs by requesting employees to use their personal vehicles for company business. Whether attending offsite meetings or traveling to other company operations, riding in the comfort of your own car is becoming the norm. As well, renting vans or other vehicles for delivery of finished products, or picking up a rental car when business travel includes the airport has become a more common occurrence.

So with potentially many of your employees behind the wheel at the company’s request, and knowing that statistics prove this to be the leading cause of tragic workplace accidents, how can you manage this exposure? Consider the following:

Driver selection process: establish basic protocols for those you expect to drive on the company’s behalf and document them in a fleet safety program, such as:• Ensure they have a valid driver’s license.• Obtain motor vehicle reviews (MVRs) to check their record and conduct similar reviews annually.• Establish a list of drivers approved—and not approved—to drive personal or rented vehicles for company business.• Obtain copies of approved drivers’ personal auto liability policy; check to ensure the coverage is current and includes proper limits of liability (your agent can help you establish the minimums given your business circumstances).

Care and maintenance of employee-owned cars: observe any car being driven to ensure that it is properly maintained in accordance with the manufacturer’s instructions.

Driver training: establish expectations regarding training, driver behavior and accident reporting. This reinforces compliance standards for each employee authorized to drive on the company’s behalf.• Clearly communicate your expectations regarding safe driving through a documented fleet safety program that addresses matters such as the use of mobile devices while driving.• Offer written procedures for the selection of drivers allowed to use personal vehicles for company operations.• Provide training on accident reporting and provide an accident reporting kit.• Limit the use of personal vehicles; rely on this option only when absolutely necessary.

Hired or rented vehicles: the same safety practices should be applied when you lease, rent or borrow vehicles for company operations. In addition:• Ensure your employee drivers are familiar with the leased vehicle, including manual transmissions or oversized vehicles.• Remember that vans, light trucks and larger box trucks require additional driving skills. Match the vehicle to the properly trained employee driver.• Double-check whether a commercial driver’s license is required to drive a particular vehicle.• Ensure that the rented vehicle has been inspected. (Drivers should personally conduct a pre- and post-trip inspection of the vehicle.)

Summary

As with many business practices, you probably noticed that the common thread is communication—written policies and procedures, interviewing employee drivers to ensure they maintain the proper credentials, offering training and reporting tools, and ensuring those driving rented vehicles are capable and in some cases, properly licensed for the task. By revisiting your approach to handling employees driving non-owned fleet vehicles, you’ll ensure this often-overlooked exposure is properly in check—and positively contribute to your bottom line.

For more information about controlling your loss exposures, visit: www.onebeacontech.com and click on our Managing Risk section.

Robin B. Gray, Jr. President678.393.9990 rgray@eciaonline.org

Robert Willis Executive VP/CTO571.323.0255 rwillis@eciaonline.org

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E C I A S t a f fU p c o m i n g E v e n t s :

E C I A B o a r d M e m b e r s

Chairperson +John F. DenslingerMurata Electronics N.A., Inc.

Past Chairperson +Brian McNallyArrow Electronics, Inc.

Chairperson-elect +Michael KnightTTI, Inc.

Sales RepresentativeCraig AndersonSumer

Manufacturer DirectorJames A. BruortonKEMET Electronics Corp.

Distributor DirectorPaul BuckleyNewark

Sales Representative +Mark ConleyO’Donnell Associates North, Inc.

Distributor Director +Lee DavidsonAllied Electronics, Inc.

Manufacturer Director +Richard DwyerIntel Corp.

Distributor DirectorTodd FarnsworthCarlton-Bates Company

Distributor DirectorFrancis J. FlynnSager Electronics

Distributor DirectorPerry FoxTonar Industries, Inc.

Manufacturer Director +Blair HaasBud Industries, Inc.

Sales Representative Jim HarperHarper & Two

Manufacturer DirectorBrian HaugeMolex

Manufacturer DirectorGreg JerrehianPhoenix Contact Manufacturer DirectorJames R. KaplanCornell Dubilier Electronics, Inc.

Manufacturer DirectorPaul KrystekIBM Global Procurement

Distributor DirectorMark LarsonDigi-Key Corp.

Sales RepresentativeRobert LoganKruvand Associates

Manufacturer DirectorJames MatthewsCorning, Inc.

Distributor DirectorEric MaxGenie Group Inc.

Manufacturer DirectorJeff NewellTexas Instruments

Sales Representative Paul NielsenBrainard Nielsen Marketing

Sales Representative Dave NorrisNorris & Associates

Distributor DirectorGlenn SmithMouser Electronics

Distributor DirectorEd SmithAvnet

Sales Representative Mike SwensenMel Foster Company

Manufacturer DirectorKeith B. ThomasAVX Corp.

Distributor DirectorWalter TobinFuture Electronics Sales Representative Bob WalshCoakley, Boyd & Abbett, Inc.

+Executive Committee

2012

August 7-8 ECIA Components Council (ECC) Thief River Falls, MN

September 12-14 ECIA Councils & Boards of Directors Meetings Portland, OR

October 1-4 Fall Engineering Summit

28-30 Executive Conference Chicago, IL

November 13-16 electronica Munich, Germany 30 CARTS Submission Deadline

2013

January 8-11 Consumer Electronics Show (CES) Las Vegas, NV

March 25-28 CARTS International 2013 Houston, TX