Chain of custody and your electronic components: What you need to know

Kristofor Kelly, President and CEO

March 6th, 2019

From fighting counterfeits to liability protection, chain of custody impacts the lifecycle of electronic components.

Chain of custody, a logistics buzzword of the moment, has morphed from legalistic term for a paper process to the realm of IoT acceleration and blockchain potential. Chain of custody refers to the documented path of a product, from creation to end-user to end of life. Based on where you fit into the supply chain, your interests might focus on a particular part of the chain of custody. Here’s how developments in chain of custody technologies could play into your electronic components sourcing and disposal.

Enhanced electronic components security through blockchain?

Tracing the origins of incoming parts forms a critical part of electronics component sourcing. For electronics manufacturers, traceability presents a major concern in preventing counterfeit or non-conforming parts from entering the supply chain. Chain of custody provides complete documentation of all of the traceable steps of a product, which is critical for ensuring a safe and secure supply chain for electronic components, from high reliability to consumer.

Blockchain offers the possibility to move past unreliable paper documentation and other easily counterfeited sources to a secure transactional environment. Blockchain forms a digital ledger that holds a record of each step of a transaction. This holds potential for storing information on the history of electronic components that comprises chain of custody or even possibilities like sharing information on quality data. With blockchain establishing a secure database of transactions, chain of custody could be more reliable than ever before.

Could IoT technologies enhance chain of custody in asset disposal?

We are seeing IoT drive demand for electronic parts at an unprecedented rate. With the global market for IoT devices predicted to grow at a CAGR of 19% over the next 4 years, we are closely watching all facets of IoT-related growth. Beyond demand considerations, the sheer amount of data that IoT devices and systems generate brings a wealth of possibilities to electronics component management and disposal.

You must manage end-of-life components responsibly to refurbish or recycle them safely and legally. In its current form, chain of custody in asset disposition happens through secure handling and processing. Closely tracking each step of the process ensures both that you are safe from the liability posed by loss, theft, or improper disposal of assets. Data from IoT devices and systems could offer highly detailed insight into tracking your assets and timing disposal. Then, when it’s time for disposal, IoT trackers could closely monitor the transportation, handling, and storage of your excess and surplus electronics in the disposal process. This could add a significant layer of protection

Navigating changes, with a history of trust.

From procurement to end-to-end lifecycle of electronics, establishing a chain of custody offers security. With 20 years of experience, we’ve navigated a lot of change in the world of electronics component sourcing. The strategies that set our exceptional outcomes apart include industry-leading solutions. We offer inventory control systems that are AS9120A, ISO 9001, and ANSI/ESD S20.20 certified in climate controlled, safe, and secure facilities.

Related posts:

Global Electronic Parts Procurement Requires a Global Strategy: Does Your Supplier Have What it Takes? (Video)

How Can You Overcome an Electronic Components Shortage?

Looking ahead: Predictions on the shortage market in 2019

 

" Chain of custody provides complete documentation of all of the traceable steps of a product, which is critical for ensuring a safe and secure supply chain for electronic components, from high reliability to consumer. "

Learn the Velocity Difference

Velocity Why