14 Apr 2020 -

Counterfeit – Manufacturing’s biggest challenge?

Counterfeit electronics was already a big problem before Covid-19. In these challenging markets, where our normal routines and processes are being tested to the limit, the dangers of counterfeit entering the supply chain are dramatically increased.

Last month an article in Supply Chain Management Review called it “a multi-headed monster and it is growing”, saying that it has become increasingly difficult to distinguish a counterfeit from the real thing. Owners of brands and intellectual property are losing billions of dollars in revenue every year to counterfeiters that are selling bogus products, often at the same price as the true brands, they claim.

Likewise, a recent article in Automation.com refers to a rise in reports of counterfeit electronic products from the counterfeit-mitigation agency, ERAI, of which Astute Electronics is a member. The article says it is “impossible to put an exact figure on the volume of counterfeit products in circulation, because many will go undetected” but reports suggest “consumer and industrial businesses lose approximately $250 billion each year because of counterfeit components”.

The article makes a good point: “It is critical that manufacturers ensure their organisation — and those it does business with — are protecting themselves. Establishing supply chain legitimacy should be the first step. Manufacturers shouldn’t be afraid to ask for evidence of exactly how distributors operate with a product’s OEM. Should the relationship be legitimate, there will be no problem providing traceability for the product.”

Astute Electronics wholeheartedly believes in this statement. Speak to us about us about fully-traceable electronic components.

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