In the meantime I came across an essay by Henry Livingston who posits:
"...that one explanation is that many contractors have not established business practices for reporting outside of their organizations; I speculate the underlying reasons why many have not established these practices may well be fear unfavorable media attention and reputational risk".
Dan's point is well made, though: sending the stuff back just increases the risk it will re-circulate. Even franchised distributors have been caught unaware when a return contains counterfeits (thus, they inpect incoming as well as outgoing components). On the flip side, if the stuff is confiscated, does anyone compensate the customer? And who determines if the stuff is destroyed once confiscated? It continues to be a real big can o worms
Not convicted until proven guilty, government will need to intervene and find out how and who are guilty party. But prime question remains, what to do with the counterfeit parts. I think that supplier should pay for such parts and the parts should be destroyed by government agency. By imposing penalties on suppliers, government can block the first entry point to the supply chain and can make suppliers more cautious about the authenticity of the parts.
As I have worked in hi-rel industry, it is very easy to identify and know in advance that parts are counterfeit. Many people know it, but they do not have voice and many a times they are part of corrupt supply chain. To believe, supplier are ignorant of them giving duplicate, counterfeit parts is very hard to belive. They should make more severe punishment like black listing them for five years.
Daniel, I look forward to Part II. There is, however, one clear action regarding Government contracts everyone is aware of but very few do. To quote from the Opening statement of Senator Carl Levin, Chairman, of the Senate Armed Services Committee "...too few contractors and distributors consistently file reports with the GIDEP...that has got to change...Failing to report suspect counterfeits and suspect suppliers puts everybody at risk.
I would very much like to hear your opinion as to why the industry all too often decides not to participate in GIPEP?
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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