“Shortcuts never pay off”

Financial turmoil can have an unfavourable short-term effect on price in relation to securing your supply chain and, in worst-case scenario result in counterfeit parts in your product.

Torben Hajslund in Denmark on defence event, talking about price, leadtimes and compliance.

“Regulations serve as a crucial safeguard, governing the development and deployment of military products. We urge our customers to question the supply chain and the security of their data. If you are only chasing the “lowest price”, you might end up with counterfeit or non-compliant products”, Hajslund continues. 

It is vital to conduct an Integrity Due Diligence (IDD) of your subcontractors to ensure they adhere to the necessary regulations and conduct the required audits. Explain to your supply chain who they should contact if they have a challenge and the applicable consequences, if they knowingly or unknowingly breach compliance.  

Ask for and document Country of Origin
“One simple place to start is to always ask for, and document Country of Origin for every single article in your products. Our commitment to compliance and export control is the reason why we are contracted and approved by Tier 1 Defense and Aerospace companies, and why we are AS9120 certified”, says Hajslund. 

The production of PCBs has remained largely unchanged for decades. However, the surrounding elements—such as regulations, control mechanisms, standards, and compliance—are introducing new challenges and checkpoints. 

“We have no desire to be just another PCB supplier. We are here to challenge; also, on DFM, price and lead-time, but mostly on regulatory focus and compliance. I want my customers to sleep soundly at night, without nightmares of unapproved changes in the supply chain”, says Torben Hajslund Sales Manager Confidee Denmark. 

Increased focus on price
Recently, due to global uncertainties and an unpredictable economy, there has been an increased focus on pricing and benchmarking to offer the lowest possible price and or increase one’s internal margins. 

“As a result of this, some suppliers have resorted to being overly solution oriented with their offers, ultimately providing products from a new or different source than previous deliveries to simply reduce price or increase one’s own margins. A change of supplier without the pre-approval by the customer is according to AS9120 to be considered a counterfeit product. This can easily be examined by comparing the logo on the PCBs or information received with previous deliveries”, says Hajslund. 

Ask yourself, what will your colleagues, customers, government and market say or what will the consequences be, if something goes wrong with your product and somebody can document that it is due to an unapproved change of supplier.
“Often, if it’s too good to be true, it is just that. Price focus underscores the critical need for control mechanisms, transparency concerning manufacturers, and stringent compliance measures within the supply chain”, says Sales Manager Denmark Torben Hajslund. 

It’s like a marriage, you need to invest time and communication
Several times, we have heard companies experiencing unauthorized and uninformed changes in the PCB supply chain, which we find completely unacceptable and unheard of. We want to be a trusted partner, not just another supplier or vendor, that is why we are nearly the only PCB supplier with AS9120 certification in Europe.  It’s like a marriage, you need to invest time and communication, shortcuts never pay off”, he says. 

The need for control and transparency in the supply chain is more important than ever. If you are in the defense sector, this is old news to you. 

“Compliance is long gone being applicable for only the defense sector. As a trusted partner to many Tier 1 Defense Product Owners in the Nordics, compliance is a responsibility we take seriously. We as an industry need to join forces and together educate regarding compliance, also in the defense & space sector, even if these industries might be “best in class,” says Hajslund. 

A crystal clear vision
Hajslund is crystal clear on what the industry needs to focus on and how to improve the supply chain security. 

“It’s quite easy. Start with demanding documentation, transparency, data control and flow down of information. You need to question the supply chain and the security of your data. Who has access to them, how is data transferred, what security level handles the transactions, what is the country of origin, what is the country of production and country of end usage. In 2024 these factors have become parameters one cannot neglect or deny”, says Hajslund. 

Confidee was founded because of an unfulfilled niche in the market, namely compliance, The company wants to prove what other companies claim and soon this will be evident as our partners will be granted Real-Time access to their individual Compliance Matrix. 

“Being a pioneer within any field, is a tough job, however, we are honored and humble seeing the industry follow our lead, focusing more on partnerships, compliance and cyber security”, Hajslund says. 

How do you allow transfer or receiving of data?
Confidee only accepts defense data transferred through secured FTP servers or other approved channels. All other methods, like mail, are not permitted and in breach of compliance.  

“It’s surprisingly many that still want to send data through unsecured channels”, he says. 

The company has at an early stage documented itself as a challenger in the industry with compliance and data security within the PCB supply chain as focus. This is also why achieving the AS9120 and ISO9001 certifications in an unprecedented record time was a strategy. 

“In just two years, Confidee has grown to 23 experienced colleagues, established 3 companies, Confidee AS, Confidee AB and Confidee GmbH, earned the trust of 130 customers, become contracted and approved by Tier 1 Defense and Aerospace companies, built strong relationships with valuable manufacturing partners, and have in record time achieved 3 crucial certifications; ISO 9001, AS9120 and EASA Part 21G”, Hajslund explains. 

A risk you do not want to challenge
Technological advancements have introduced new risks like data theft and product counterfeiting, driving increased security around IP and stricter industry regulations. There is also a rising demand for accountability and emphasis on environmental sustainability and compliance. These factors necessitate robust regulatory measures to protect consumers, the environment, and market integrity.
Hajslund describes this challenge, marked by numerous regulations and standards, as “the cherry on the cake.” 

“These regulations and specifications are here for a reason. The world is changing, competition is increasing, and the risk of being non-compliant is not a risk you want to challenge”, says Hajslund. 

What is the importance of AS9120 certification.

“Shortcuts never pay off”

Written by: Guro Krossen

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