The counterfeit business is good. An Industry Week article notes that it be costing industrial businesses and consumers like you and me $250 Billion, each year! This is 10 Million, $100 bills, or 12 Pallets for just ONE Billion. Or 3,000 pallets of $100 bills for $250 Billion. Annually!
If you contract manufacture in Asia, inevitably the conversation of counterfeit components will NEED to happen; either to prevent a situation or deal with one. Whether you are sourcing plastic resins, filler additives, copper, or components for PCBs, a diligent 5 step plan needs to put in place and it needs to be monitored. Here are our 5 Tips to ensure counterfeit protection against your goods:
- Global Quality Manager to own the process to keep counterfeits OUT of your supply chain. You need a process, a plan, measurable metrics, and solutions to prevent or deal with the potential threat of introducing phony material into your network.
- Inspect, Inspect, Inspect! Strong Incoming Quality Control measures - testing random samples of parts to ensure they meet the manufacturers spec. Don’t expect what you don’t inspect.
- Purchasing from an authorized distribution network.
- Hold Sub-Suppliers to the same quality standards you expect. Random Factory and Distributor Audits are necessary.
- Seek Advice. Don’t Go It Alone. Make sure you work with a global contract manufacturer that understands manufacturing in the country, the culture, and the business environment you are in.
With over 20 years of manufacturing experience in Asia we have seen it all from copper that was painted aluminum to fake resins, to phony components. What’s the risk: What if your UL electronics aren’t really UL approved and fair or worse, catch fire? Who wants that liability? Not you!
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