Product counterfeiting is a multi-billion-dollar underground economy that poses a serious threat to the legitimate global economy, including commerce and the public's safety.

Many North American manufacturers have exported the production and assembly of their products to different parts of the world to maximize profits. Consequently, they grapple with long, complex supply chains, which can often be difficult to audit. The products themselves are also becoming more complicated as manufacturers combine components and services from multiple suppliers. As a result, both products as a whole and their individual components are at risk of being counterfeit.

Protecting global supply chain integrity is of the utmost importance for manufacturers whose reputations are at stake. To effectively safeguard against counterfeiting, there are several steps that manufacturers can take at each point in their production process.

Establish a System for Tracking Product Components

To combat the insurgency of counterfeit products, members of the supply chain should collaborate to institute a better component tracking system. A rigorous internal quality standard, based on an inspection program of all incoming parts can help to keep the supply chain pure.

It is important to document dates and lot codes, and photograph all products to maximize traceability if a product is found to be counterfeit or sub-standard. Manufacturers should also perform due diligence when working with new component suppliers.

Implement Safety and Performance Standards

Establishing a system of checks and balances throughout the supply chain can help manufacturers detect counterfeit components easily and in a timely manner. Frequent and random testing and retesting of product samples will aid in exposing counterfeit components. In addition, internal quality assurance inspectors should be encouraged to act as whistle-blowers if they spot something suspicious.

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