The scope of the problem, what causes it and how all involved in the supply chain can help solve it is the subject of an excellent white paper from John P Brown, vice president of marketing and strategy at Verical, which describes itself as an online electronic component marketplace.
Brown is clear that the supply chain has only itself to blame as some of its practices serve to exacerbate the counterfeiting problem.
Examples are manufacturers who scrap parts without oversight. Quality parts destined to be scrapped are meat and drink to counterfeiters.
Some distributors accept unchecked returns, Brown reckons. There are unethical companies who buy counterfeit parts, and having been stung, buy quality products from distributors and then return fake parts. Unless they are checked gy the distributor they rejoin the supply chain.
OEMs and contract manufacturers let their inventories run too low, Brown charges. Shortages suddenly occur and this exposes any company in a hurry to buy components and keep the production line running to the risk of buying counterfeit parts.
The costs of counterfeit scams is dressing. Depending on where it is spotted in the supply chain these costs can range from 50p to £3,500, and that's replacing just one component.
To read the white paper go to
https://www.verical.com/about/resources/docs/Counterfeit_WhitePaper_2009.pdf
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