Is It Really "New"?

Is It Really "New"?

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How many of you can say you purchased a "new" part recently and when
you received it, you wondered if it was really new?

Please be aware that there are quite a few suppliers, OEM's and OEM
Affiliates quoting parts as being "new" recently, which is just not
the case.

Having worked at a major OEM myself, I can tell you this is not
logistically or feasibly possible in most cases. The manpower,
inventory space/quantities and high dollar investment requirements do
not make it practical for the OEM's to do this and still make a
profit. Refurbished and new parts are mixed in the same inventory, as
that inventory is also used by their service teams to repair their
installed base of customers under warranty or contract. If you don't
believe this to be true, pick up any OEM warranty or service contract
and read the fine print about replacement parts.

In contrast, transducer inventory is actually separated as it is very
hard to pass off as "new" due to OEM packaging and cosmetic signs of
wear - however there are still suppliers, OEM's and OEM Affiliates
that use dishonest tactics such as saying something is "new" to get
more margin or just to capture a sale - I have experienced this first
hand. When the item is received I almost always get the same reaction
from the seller when I bring this to their attention - "huh - we must
have pulled the wrong item".

The only ethical, clear-cut way for a customer to be quoted a truly
"new" part would be if it was pulled from a brand new machine where
the title had not yet transferred - In other words, it has never been
sold or used before. Again, think about the logistics and cost
involved with this approach, it is just not a feasible business plan
for the OEM to undertake.

So, with all of that said, how do you protect yourself?

Here is what we do as a minimum to protect ourselves and our customers:

When being quoted "new" ask the supplier, OEM or OEM Affiliate if the
title has ever transferred on this part (or its components) before.
Also, ask if their "new parts" inventory is separate from their
used/refurbished inventory. If they can't answer those questions, you
know the answer and should go elsewhere - it is too good to be true.

Ask the supplier, OEM or OEM Affiliate to supply you with an invoice
on company letterhead stating that the part is new along with the
CEO's name and/or the sales reps name on it - This is mandatory if it
goes to court or if you have a warranty dispute. You want to be able
to name an individual as well as the company in court.

Inspect the item when you receive it - is it in OEM packaging? Does it
look new? Do you see repairs on the board, monitor or power supply? If
you do, you know it is not new.

Ask what the warranty is and if it is transferrable - if it is new
and coming from the OEM or an OEM Affiliate it should have at least a
one year warranty - if it is a third party supplier it may be new,
however the OEM's warranty may have expired while it was sitting on
the shelf. In those cases ask who the warranty is being covered by,
the OEM or the supplier you are working with.

Save all your paperwork!! OEM's actually have it built into their
business/risk assessment plans that most customers are poor record
keepers.

In closing, integrity, ethics and honesty is hard to come by in these
tough economic times....the bigger the company the more desperate they
become to report "double digit growth" to their shareholders.

Work with someone you know that has an excellent reputation of
delivering to their word in the marketplace!