Authored By:
Daniel DiMase
Honeywell Technology Solutions Inc.
Columbia, MD, USA
Phillip Zulueta
Jet Propulsion Laboratory
Pasadena, CA, USA
Summary
Counterfeit electrical, electronic, and electromechanical (EEE) parts pose a significant threat in the global supply chain. Equipment failures or malfunctions can present situations that cause mission failures, health and safety concerns and could jeopardize national security. The counterfeit issue is magnified as an increasing number of companies outsource portions or all of their assemblies to reduce labor, overhead and capital expenditures. Companies often experience complications when trying to control or maintain quality as they outsource procurements or manufacturing and lose the associated visibility and control. As a result, companies are becoming increasingly co-dependent to continue production of quality product.
Material circulates among companies, across borders, and around the world. Once the supply chain has been tainted with bad product, no company is immune. Original component manufacturers (OCMs), franchised and independent distributors, brokers, original equipment manufacturers, and government agencies need to have processes and procedures in place to combat the problem. The problem will not get solved with only a few links of the supply chain combating the issue. If each link in the supply chain would create and implement a counterfeit parts control plan that would tighten controls, the risk of this growing dilemma could be mitigated.
This paper will segment the market and present a possible solution in an industry that unites to combat the counterfeit problem. It will address solutions to the counterfeit EEE parts problem and what each link in the supply chain could do to help eliminate the problem.
Conclusions
In summary, the industry needs to unite in order to combat the growing counterfeit dilemma. Counterfeiting is big business that creates health and safety concerns, threatens national security, eliminates jobs, damages the economies of the countries in which it occurs, and supports financial activity for terrorist organizations and crime syndicates. The first step to control the problem is to create a plan.
All sectors of the supply chain could create counterfeit parts control plans that will address the issue and the unique concerns of their individual sector and supply chain channels. The U.S. government has been a worldwide leader in protecting the rights of intellectual property holders. Some of their practices and laws could be instituted in other countries to combat the problem. Industry and government agencies worldwide need to cooperate and create radical programs to address this very serious issue. Together, an industry united with global cooperation and government assistance can make a difference and help mitigate the counterfeit parts problem.
Initially Published in the SMTA Proceedings
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