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IHS: 'High Risk' Suppliers Threaten Defense Supply Chain

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GraniteIC
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In 6 months the problem is solved with 100% reporting.
GraniteIC   11/1/2012 10:16:36 AM
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Bolaji If IHS was reporting numbers provided by the government then that is public information. I would like to know the name of that government report. 

It doesn't change any of my previous comments. The GIDEP's are nearly non-existent while anonymous P/N reports continue to grow monthly. The current system enables the counterfeiter's and e-waste flippers. It does nothing to discourage this illegal activity. 

This reminds me of Lance Armstrong who never tested positive. These so called "Trusted Supplier" have no GIDEPs or reports against them. They are the high profile companies on all the approved vendor lists with perfectly pristine records. If that's true and their processes are so perfect then why is anyone upset about Counterfeit and Substandard Material? 

Companies are upset because they have been flooded with e-waste Counterfeit and Substandard Material for years and they protect their suppliers by not reporting. You say, "There's no conspiracy to not identify the sellers of fake parts." 

I agree with you that there is no conspiracy but to continue to use the same suppliers over and over again while protecting these suppliers to avoid embarrassment. Is the reason why Counterfeit and Substandard Material is so profitable. These Suppliers know that very few will get detected by the End User Manufacture because Counterfeit and Substandard Material works initially. Often its months or years after the transaction the issues are discovered if ever. Then there is no reporting. Why should these Suppliers stop? They are making millions, they will never be reported and never suffer any consequences. 

If they are ever called to account for the incident it usually a significant time after the transaction where proving liability becomes a challenge so the only corrective action is an anonymous report of the P/N. 

Reporting makes good companies better. It also stops bad companies in their tracks. 

When a Counterfeit or Substandard part is identified then all tractability and chain of custody documents need to be provided. If the part traces back to the OCM, Authorized Franchise or verifiable OEM excess then forgiveness and process improvement is fair and reasonable. This is a very small percentage less then 1% 

When the part leads back to a dead end of the e-waste junk piles then the entire chain of custody need to be reported they are engaging in e-waste flipping and that needs to be reported. This is the case in 99% of all the true Counterfeit and Substandard Material. 

It's time for NASA, Military, Medical and Commercial manufacture to bite the bullet once and for all and report everything. Suffer the 6 months of embarrassment and move on. Protecting the Suppliers is why we have had a decade of counterfeits. In 6 months the problem is solved with 100% reporting.

Jacob
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Re: Why are the GIDEP reports nearly non-existent?
Jacob   11/1/2012 5:49:44 AM
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Bolaji, why such counterfeit companies are involving in supplier source? Before accepting any component for space and defense applications, they used to do ‘n’ number of tests to eliminate counterfeit components. Moreover such applications need high grade (Space/Military) components, which may not be possible with most of the local companies. If such things are happening means obliviously there will be some involvement from the respective authorities too.

Bolaji Ojo
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Re: Anonymous posting of "suspect" parts
Bolaji Ojo   10/31/2012 6:05:42 PM
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Granite IC, In this case, IHS was reporting numbers provided by the government rather than what it received from ERAI or other industry organizations. It may be time for the industry and government to become even more proactive. I don't personally like the idea of the government just transferring the onus of proving the parts are genuine to companies alone. There also has to be tough consequences for the companies found to be selling or receiving fake parts that should have been discovered through the simplest of tests.

Bolaji Ojo
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Re: Why are the GIDEP reports nearly non-existent?
Bolaji Ojo   10/31/2012 6:02:06 PM
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You raised valid points. I don't think there's a conspiracy to not identify the sellers of fake parts. Often, there's a great deal of embarrassment because companies do not want anyone to know counterfeits were found in their inventory. However, as you rightly said, this is not solving the problem. We need to move beyond passive "seize and destroy" to actually locating the source of the problem and asking them to account for how the fake parts got into the channel.

GraniteIC
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Why are the GIDEP reports nearly non-existent?
GraniteIC   10/31/2012 11:11:39 AM
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 It's great to see NASA and Military Contractors get involved. I agree with the previous comments NASA and Military contractors have been receiving Counterfeit parts for years. 

Why haven't they been reporting the companies who sell the counterfeits? 

Why are the GIDEP reports nearly non-existent?

We see hundreds of parts reported anonymously every month and by all accounts the problem is growing.

Why anyone is surprised that the problem continues to get worst month after month year after year is beyond me. 

When NASA, Military and Commercial manufactures protect the companies selling counterfeits. These companies have no fear of selling counterfeits. They have no fear of the law. They know they can ship recycled e-waste that has been cleaned up and re-graded as new. They know the parts will go undetected for years. The small percentage that gets detected is polity referred to as an escape and a mistake. The supplier is never reported and continues to retain their "Trusted Supplier" status. 

The P/N gets anonymously reported so people can pretend that they are doing the right thing. The counterfeiting epidemic is only going to continue to grow year after year because the manufacturing community is protecting the suppliers of counterfeits and substandard material. 

The number of "High Risk" Suppliers continues to grow because there are no consequences. What is the down side to shipping counterfeits? Occasionally producing a corrective action? The Manufacturing community refuses to report Suppliers of Counterfeit and Substandard material. As long as this remains the status quo expect to see this epidemic continue to grow. For every 1 counterfeit detected 100 go undetected. This is why there are so many counterfeiters and e-waste flippers it's profitable and there are no consequences.  

Bolaji Ojo
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Re: NASA's involvement
Bolaji Ojo   10/31/2012 10:12:40 AM
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Taimoorz, Yes, they do but think of all the components that go into a space vehicle, for instance, and it's quite clear NASA cannot possibly have that type of agreement with the suppliers of all parts. Some will be bought from other sources.

TaimoorZ
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Re: NASA's involvement
TaimoorZ   10/31/2012 10:09:42 AM
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"In the case of the space agency, this is even more pressing because it needs components that the original maker may not produce anymore, meaning it must rely more on the broker market, the sector that's been the source of a major percentage of counterfeit parts."

@Bolaji: Don't companies normally enter into an agreement with the equipment manufacturers to also provide the spare parts for a long period of time (usually 10 to 20 years)? I've seen that happening in the military quite commonly.

Bolaji Ojo
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Re: NASA's involvement
Bolaji Ojo   10/31/2012 9:58:44 AM
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NASA is equally impacted by counterfeiting and must have seen evidence of fake parts in its supply chain before getting involved. In the case of the space agency, this is even more pressing because it needs components that the original maker may not produce anymore, meaning it must rely more on the broker market, the sector that's been the source of a major percentage of counterfeit parts.

TaimoorZ
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NASA's involvement
TaimoorZ   10/31/2012 9:53:35 AM
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It's interesting to see NASA getting involved in finding solution to counterfeiting. Normally NASA has a lot to worry about but getting involved in dealing with counterfeiting tells you a lot about the critical nature of the issue and how badly counterfeit parts may hurt it.

hash.era
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Re: Anonymous posting of "suspect" parts
hash.era   10/31/2012 4:33:39 AM
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I think this is something which we should dig deep into becasue SCM is something which we can use to do loads of work at one stretch. Its such a powerful tool if its being used correctly.

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