bisco industries Blog

Traceability and the Fight against Counterfeit Parts

Counterfeit parts affect the safety, reliability, and usability of end products. With the cost of counterfeit goods being so high, OEMs and distributors are making concerted efforts to stop the flow of counterfeit products. In addition, recent government regulations have also addressed the need to eliminate counterfeit components in the supply chain.

The most recent Defense Federal Acquisition Regulation Supplement (DFARS) took effect just about year ago which defined new measures suppliers must take to help keep counterfeit electronic parts out of the government’s supply channel. Awareness and implementation of DFARS is most prevalent in the military and aerospace industries although it impacts many other industries by extension.

Understanding DFAR Traceability REQUIREMENTS

Recently, there have been several meetings between prime contractors and the Department of Defense as to how to comply with the law’s reporting requirements. One area that has been clearly established is traceability. The laws clearly state that supply chain members must buy DFAR compliant products from authorized vendors and if unable to, must complete a variety of steps to prove that the product is genuine.

In a recent interview the COO of Electronic Components Industry Association (ECIA), Robin Gray, stated that, “There also is a widespread misconception that products from authorized sources are frequently not available, and that [buyers] have to go to the gray or black market to get them. The fact of the matter is, buyers have limited their sources to a small pool.” In many cases buyers view the risk of getting a counterfeit product and having a failure as low compared to the cost of shutting down production. Caught between these pressures buyers must learn to partner with suppliers who can locate hard-to-find products without compromising traceability. Buyers should consider the following factors when selecting a supplier:

Tips for Selecting Suppliers

  • Track supplier performance versus quality standards and audit regularly
  • Select suppliers who already have a quality management system in place
  • Select suppliers who are certified to quality standards like AS9100/ISO9001
  • Create a list of alternate suppliers that meet quality standards (these suppliers can be utilized when core suppliers do not have product available)
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