VELOCITY     Accelerating Your Supply Chain Success
The leader in global supply chain solutions

Anti-Counterfeiting DNA Marking Gets a Boost

View comments: newest first | oldest first | threaded
Page 1 of 2   Next >   Last >>
obsbuyer
User Rank
Stock Keeper
DNA the future or not
obsbuyer   3/26/2013 3:04:42 PM
NO RATINGS

  

I believe DNA marking is the future. Not so much now verifying traceability from authorized distributors and manufactures is no big deal. Down the line  when those parts end up in the non-franchised market it will serve a great purpose. The last 6 or 7 years Manufactures and distributors have really step up in the fight against counterfeit . That has not always been the case when doing research and diligence on incoming inspection verify certs lot numbers,  7 or 8 years ago or beyond the first thing the mfg's asked was where did you buy ? If you gave them a name of non-franchised distributor they simply replied we do not help with any non-franchised and hung up. DNA marking seemed like a great solution, now all the mfg's are saying wait stop to expensive not proven. Well you should of gotten in the game sooner and help come up with better solutions. DNA does have its faults but many will and can be worked out and what is the solution if not DNA. Eventually all parts end up in the non-disty market or brokers. The statement was  40% of all counterfeit parts were available in the franchised market. Probably true but what was the lead-time  , simply making the statement don't buy from non-franchised is not realistic when it comes down to no shipments this quarter. " we are waiting for parts" The DNA will work itself out when more competitive sources come available and more techniques.   

Douglas Alexander
User Rank
Blogger
Re: not the whole story
Douglas Alexander   2/12/2013 7:17:38 PM
NO RATINGS

@ddeisz...I agree that there is no magic pill that will solve all issues. Procurement disciplines, supplier qualification partly based upon counterfeit detection capabilities, and logistics tracking from origin to destination are three more pills that must be taken as a "cocktail" solution. Enhancing any of these key areas will make some improvements. Enhancing two at a time will provide more security. All three together with a robust incoming inspection, will be about the best we can hope for until the DNA tech proves itself in multiple real world cases where the cost benefits outweigh the cost penalties...consistently. Then, and only then, will we see widespread adoption for the same reason as any other field-proven, well-seasoned, ubiquitous supply chain service......The bottom line. 

ddeisz
User Rank
Production Synthesizer
Re: not the whole story
ddeisz   2/12/2013 1:01:58 PM
NO RATINGS

Bolaji,

In reality, a vast majority (way over 90% of 5962 product) of DLA purchases come through distribution and not the OCM's. DLA is too small from a revenue perspective. This mandate is aimed at the OCM's but squarely on top of the distribution channel to implement because they sell to DLA, not the OCM's. The logistics of this is a mess. Fully Authorized distribution (Arrow, Avnet, Landsdale, Rochester, etc...) have never sold counterfeit into DLA yet are being mandated to implement something that does nothing for their products or the warfighter. In fact, the good guys are being penalized because bad actors have been enabled through purchasing practices in the past. It's a head-scratcher.

It scares me to think of all the DNA bandwagon-pumping going on when the logistics of implementation and lack of real purchasing change has happened first when it comes to semiconductor purchases. Expand the mandate to other products before any successful implementation in this industry? Why?

Legislation (NDAA) should have been immediately followed by purchasing changes that FAVORED FULLY AUTHORIZED before any wiz-bang DNA thing. Traceability is not the same as Authorized. Traceability plus any testing is not the same as Authorized. You can't make Authorized product from non-Authorized sources much less mark it with DNA and hope it doesn't have any handling/reliability issues.

We can work through all these issues, but the mandate happened before purchasing changes and has yet to be accepted with all the details worked out.

Dan

ddeisz
User Rank
Production Synthesizer
Re: not the whole story
ddeisz   2/12/2013 12:35:33 PM
NO RATINGS

Owen,

They could know that now if they would simply put DNA on non-authorized product. Instead, they are putting different kinds of DNA on differently sourced product. It is being made more complicated that it needs to be and it's not fully thought through. Then again, I have never seen a government program where this wasn't the case. All this can be worked out over time, but it is not right now.

Dan

Bolaji Ojo
User Rank
Blogger
Re: not the whole story
Bolaji Ojo   2/12/2013 12:32:33 PM
NO RATINGS

Dan, I think you put your finger on the shortcoming to DNA marking or any other type of markings for that matter. The real challenge and problem is in the purchasing and procurement. That's where supply chains get compromised. Those who purchase components in an environment that enhances counterfeiting are to blame and no amount of marking will solve that problem.

owen
User Rank
Stock Keeper
Re: not the whole story
owen   2/12/2013 11:56:08 AM
NO RATINGS

If, on the other hand, the industry were to accept it, the DLA would know the part is from a non-authorized/trusted supplier if it was unmarked.

ddeisz
User Rank
Production Synthesizer
not the whole story
ddeisz   2/12/2013 11:02:23 AM
NO RATINGS

Douglas,

While DLA has offered money toward the costs of Applied DNA, it does not cover all the costs. The mandated methodology is ink-based whereas most OCM's have gone laser marking and have no ink in their manufacturing flow. True, counterfeit components have found their way into the DLA supply chain. How exactly did that happen? Could it be that a fair percentage of those are from a wide-open purchasing strategy (lowest bidder) implemented more than a decade ago and only now being addressed? There are logistics yet to be worked out if Authorized sourced product is to be marked with DNA. Marking parts from fully Authorized sources does NOTHING to thwart counterfeit. It only adds cost and delay to the most reliable warrantied product available to our warfighter.

This is not a magic pill that will stop all counterfeiting. Marking parts only tells you who marked the parts and not the handling history or long-term reliability.

It's the details to this....the real logistics....the true implementation.....the purchasing practices.....that need to be brought in to fight counterfeit. At least 40% of the reported counterfeits for 2012 were available from Authorized sources based on GIDEP and ERAI data. That is a procurement problem and the single biggest problem enabling counterfeit.

As a society, we love the idea of an easy quick pill to swallow that cures our ails. Just take this! Quick fix to your problem here! The real work in changing our habits is much tougher and the only real long-term solution.

Dan

Ariella
User Rank
Supply Network Guru
Re: DNA Marking
Ariella   2/12/2013 10:42:55 AM
NO RATINGS

@douglas do you have the figures for the cost of adding the DNA marking to prevent counterfeiting? Is it economical enough for larger markets?

owen
User Rank
Stock Keeper
DNA Marking
owen   2/12/2013 6:37:05 AM
NO RATINGS

I couldn't agree more Douglas, and I can only hope that the 2013 NDAA (National Defense Authorization Act), section 807 and section 818 of the 2012 NDAA, which address part marking and anti-counterfeiting, will someday soon incorporate such technology. It would, in my opinion, be a giant leap forward.  

Semper Fi

_hm
User Rank
Supply Network Guru
Time for implementation
_hm   2/12/2013 5:14:45 AM
NO RATINGS

How much time is allowed for compliance of this technology? In meantime, counterfeit parts will proliferate. One more question - how much counterfeit is done by China and how much counterfeit is done by US vendors/persons?

 

Page 1 of 2   Next >   Last >>


More Blogs from Best-Practices
The robotics revolution has transformed industries from cars to electronics. Now it's optimizing a supply chain near you.
Conflict minerals research expedited by third-party services and tools will become as essential as the polluted air you breathe.
Companies fighting conflict mineral rules face an uphill battle. By embracing these rules, they can rebuild the public trust and please investors.
Radio frequency identification device technology is rapidly gaining interest by assuring the integrity of supply chains through rules-based management.
Increasing carrying capacity with giant oceangoing freighters can reduce shipping cost per 20-foot container by as much as 40 percent.
Latest Poll
The Velocity Report Archive
Click here to see our newsletter archive.
EBN Newswire
Twitter Feed
EBN Online Twitter Feed