Counterfeiting: The Rising Threat to Electronics Manufacturers

As a serious challenge to today's global electronics supply chain, counterfeiting and gray market diversion of electronics components threaten the integrity of products for manufacturers. Counterfeits and obsolete electronics components contribute to dangerous business exposure for manufacturer's customers, and compromise health and safety for consumers. Clearly, new solutions are needed to improve electronics supply chain integrity and stability.

Serialization technology provides a means by which products can be uniquely identified with a serial number at the unit item level, as opposed to lot or batch levels. The individual item, such as a circuit board, battery, etc., is assigned with a unique serial number that is embedded in a 1D or 2D barcode, or other type of tag, including radio-frequency identification (RFID) tags, human readable numbers, holograms, and other covert identifying methodologies. Although unit item serialization is one of the most powerful anti-counterfeiting and anti-diversion measures available today, many manufacturers lack standardized, automated, enterprise-wide labeling solutions as a foundation upon which serialization can be implemented efficiently and cost effectively.

This is because many large electronics organizations, their suppliers, and their distributors still rely on a mish mash of third party and homegrown barcode labeling systems. Serialization technology cannot be applied consistently or affordably throughout a non-standardized labeling environment.

However, enterprise-wide labeling strategies can provide the first line of defense in today's complex high technology electronics distribution environment. Enterprise labeling offers a dynamic and data-driven approach for the creation of complex 1 and 2D barcode labels. It provides a platform for standardization, automation, scalability, and efficient maintenance while allowing businesses to react quickly to evolving customer, regional and regulatory requirements, and ensures consistency across a global supply chain. Enterprise-wide labeling, or organizationally aligned labeling solutions that increase visibility and collaboration across the entire supply chain can better enable electronics manufacturers, suppliers, and vendors to meet performance and scalability requirements with power and flexibility.

Then when a company is ready to add unit item serialization technology as an additional powerful deterrent to counterfeiting and diversion, unique product identifier serial numbers can be integrated with minimal disruption and effort. Now is the time for all responsible electronics supply chain stakeholders to look to Enterprise Labeling Solutions as the best rapid response strategy to one of the most critical supply chain challenges today.

2 comments on “Counterfeiting: The Rising Threat to Electronics Manufacturers

  1. lauratrott
    October 26, 2015

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  2. lauratrott
    October 26, 2015

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