The Dangers of Using Counterfeit Parts in Your Production Process
What are the dangers associated with using counterfeit electronic components?
How well your supply chain runs depends on your ability to reduce risks and vulnerabilities in your production process. Counterfeit parts remain the major vulnerability in the electronics industry and costs manufacturers billions of dollars each year. The worst news is that the proliferation of counterfeit electronic components affects the government agencies as well as consumer and industrial businesses.
Dangers of Using Counterfeit Parts in Your Production Process
According to the International Anti-Counterfeiting Coalition, various leading industries are hit hard financially for using counterfeit parts from leading brands. To avoid being a culprit of counterfeit electronic parts, you need to ensure you’re dealing with a reliable and trustworthy electronic components supplier and distributor. Failure to comply might expose your production process to various dangers of fake parts.
Counterfeit Components Pose Threats to the Safety of Employees and the Working Environment
Counterfeit parts don’t meet the required electrical safety precautions or meet minimal specifications and, hence, pose serious threats to the workers and the working environment. By using such components in your production line, you risk experiencing product malfunction and failure. Some of the dangers related to these failures include:
Fires and explosions that could cost the lives of your employees and property damage
You can avoid the above risks in your production line by employing the right measures to detect counterfeit parts.
Poor Product Performance
Counterfeiters work hard to mimic not only the product packaging but the actual product as well. Distinguishing fakes from real parts become very hard for consumers when making a purchase. The problem, however, arises during the production process as the counterfeit parts don’t meet the performance expectations.
To make them look like genuine manufacturers of OEM products, the counterfeiters even go the extra mile of having very nice websites displaying photos of their warehouses. In most cases, the fake parts are used to refurbish old machines, which are later sold as new. Unfortunately, these machines don’t meet the expected performance standards and end up failing, causing damage and downtime. Dealing with a distributor that practices brand protection minimizes the risk of using fake components in your industry.
The most counterfeited electronic parts are those used in:
Using counterfeit parts in these industries is not only potentially damaging but also poses a financial risk in your business. Research indicates that the global electronics business realizes a potential annual risk of $169 billion from the use of fake parts.
Despite the huge risk, usage of counterfeit components continues to grow and pose a major challenge to electronic OEM’s in the military and aerospace industries. As the counterfeit technology continues to advance, so is the counterfeit detection mechanism, with various companies marking their chips with plant DNA during production.
Mitigate the Risk of Fake Electronic Components by Planning Obsolescence
Mitigating the risk of counterfeit parts is not always an easy task but you can achieve it by working closely with your distributor to plan for obsolescence. At Broadline Components, we can help you plan for this by providing tools that help you detect parts with obsolescence issues. We also help come up with an effective solution concerning components that could cause huge disruptions. More so, we are guided by a commitment to quality policy, giving you the assurance that your supply chain is protected.
We take pride in availing the hard to find electronic components at a competitive price through our cost down program. If you have extra stock that you don’t know what to do with, we have an excess inventory strategy in place that helps you turn that excess stock into working capital. Contact us today to request a quote and experience our Broadline difference!