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Your supply chain is under assault and may already be infiltrated. Counterfeit or sub-standard parts – electronic or otherwise – are a serious and growing threat.
Up to 10% of all worldwide technology products are expected to be counterfeit, while the Bureau of Industry and Security of the US Department of Commerce has reported a rise in counterfeit incidents sequentially each year.
In 2011, US Senators Carl Levin and John McCain announced a Senate Armed Service Committee investigation into counterfeit electronic parts and the risks these parts pose to the Department of Defense supply chain. On November 8, 2011, the Committee held its first hearing in Washington, DC during which Senator Levin promised a swift response. Testimony during this hearing revealed the results from a congressional probe, which found at least 1,800 cases of counterfeit electronics in US weapons systems covering more than 1 million suspect parts. Approximately 70% were traced to Chinese firms. Panel members also testified that counterfeiting costs the semiconductor industry an estimated $7.5 billion a year in lost revenue and about 11,000 US jobs alone.
On December 31, 2011, US President Barrack Obama signed the fiscal year 2012 US National Defense Authorization Act (NDAA), which creates regulations for counterfeit part detection and avoidance. Members at all tiers of the defense supply chain must put counterfeit risk mitigation procedures in place and certain steps must be completed within 270 days of the President's signature. This includes:
Meanwhile, although the defense sector is clamping down on counterfeits, most of the components are commercial electronics and can impact any worldwide company using the same electronics within their products. With each incident possibly encompassing thousands of parts and millions of dollars in revenue, the use of potential counterfeits represents a major liability with grave financial downside for any product. Even more ominously, this phenomenon could pose a serious threat to human life or national security.
IHS provides content, software and expert analysis enabling critical global electronics decision-making within component selection, sourcing and logistics, as well as integrated obsolescence management, BOM management, environmental compliance and counterfeit risk mitigation. Through integration to the world's largest and broadest electronic and electro-mechanical component management solution, IHS counterfeit market intelligence grants access to the datasets, tools, experts and expert analysis needed to implement a risk-based approach to minimize the impact of counterfeits. Design and sourcing decisions can be kept within the trusted supply chain through IHS access to government qualified suppliers, the enforcement of approved supplier/vendor/manufacturer lists and the availability of parts and their alternates from original component manufacturers (OCM) and authorized distributors to aftermarket suppliers and – where necessary – lower-risk brokers or independent distributors.
Learn how to protect your supply chain, your products and your company's brand against the risks that counterfeits and inferior parts present.
Date Presented: May 15, 2012
Join IHS and Supply & Demand Chain Executives as they share insights into some of the top issues impacting technology, media, and telecommunications value chains. They will raise questions to key issues like the future of pay-TV and how this impacts set-top boxes, software platforms, mobile devices, network operators, and chip production. They will outline the importance of having supply chain intelligence from "subscriber to silicon".
Date Presented: April 19, 2012
In the National Defense Authorization Act (NDAA) for Fiscal 2012, the US now requires that members at all tiers of its global defense supply chain put in place systems and processes to address counterfeits.
Date Presented: March 15, 2012
How could your supply chain be impacted by a natural disaster, another recession, or limited inventories? Tune in to this Webinar as IHS experts share insights, tools and best practices in supply chain risk mitigation and supplier risk scoring.Register for this event.
Date: December 8, 2011
World Experts Discuss Issues and Implications of the SASC Hearings on Counterfeit Electronics.
Date Presented: November 15, 2011
Mark Northrup, director of advanced technical operations at IEC Electronics Corp., has led the charge against counterfeits and electronic components. Together, he and his teams have introduced effective obsolescence management programs into the company's "high intensity response culture", as well as spearheading efforts within IEC's Dynamic Research Testing Laboratories (DRTL), LLC to promote improved component risk mitigation proficiency testing in alignment with SAE AS6171 & ISO 17025 laboratory certification compliance.
Date Presented: November 1, 2011
Counterfeit electronic products pose a significant risk of death. They can ground aircraft, cause failure of safety-related components in nuclear plants and harm patients.
Date Presented: September 15, 2011
The fight is on to put a stop to counterfeit parts in the supply chain. Learn about the latest standards established for the supply chain and how business leaders are choosing an approach known as 'standards management' to reduce total cost of ownership and risk while maximizing use of standards designed to thwart counterfeits.
Date Presented: May 6, 2011
Join supply and demand chain executives, IHS and Tech-Clarity as they share recent research about medical device manufacturers and strategies to mitigate the growing risks of counterfeit parts, price volatility and global regulatory changes within the medical supply chain.
Date Presented: April 21, 2011
Join IHS iSuppli and supply and demand chain executives as they discuss the impacts of the Japan earthquake, outline renewed efforts happening in supply chain risk management and examine specific issues facing some of the suppliers in the country, as well as the multinational operators dependent upon suppliers from Japan. Learn about shortages, price and lead time issues and even counterfeit part risks that may be on the horizon. Gain knowledge about information-based strategies to help companies proactively mitigate risks and respond with agility in a calculated fashion.
Date Presented: April 7, 2011
Join supply and demand chain executives, ERAI and IHS as they share their expertise, tools and best practices to prepare for anti-counterfeit, supply chain risk mitigation and problem-resolution capabilities for the supply chain. Over the course of an hour, they will discuss industry-recognized standards management disciplines, predictive and reactive obsolescence forecasting, component management, counterfeit databases and reporting mechanisms and supplier risk management capabilities.
Date Presented: March 30, 2011
Newly enacted or expanded laws governing product design, the use of conflict minerals, chemical restrictions and end-of-life management of products are placing unprecedented product stewardship and supply chain obligations on companies across a variety of industries. Join regulatory expert representatives from IHS and the industry-recognized IHS EIATRACK® service for this one-hour briefing where speakers will share best practices in product stewardship, as well as provide an update on key legal developments expected in 2011.
Date Presented: February 23, 2011
Learn how leaders are addressing supply chain risks with this presentation from IHS and ERAI experts and L3 Communications that discusses the rapidly escalating problems associated with counterfeit parts and best practices for mitigating those risks. Discussions highlight the SAE International AS5553 standard, "Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition" and the global G-19 Counterfeit Electronic Parts Committee driving international participation.
Mitigating supplier risk is good business, helping to prevent shortages and take advantage of market fluctuations. Learn how you can take advantage of market trends instead of becoming a victim of them.
Counterfeits are on the rise, public scrutiny is intensifying, and known holes in the supply chain remain vulnerable to ambitious predators. It’s time to stay close to the pack. It may be time to run towards the leaders.
Supply & Demand Chain Executive recently hosted a discussion among a select group of electronics industry veterans with extensive professional experience on the frontlines of the battle against counterfeit and suspect electronic parts. The roundtable came together at the initiative of Mark Northrup, director of advanced technical operations with IEC Electronics Corp., a contract electronics manufacturer based in Newark, N.Y. Northrup has more than 25 years of experience in the industry, has been helping lead the charge against counterfeits within IEC, and has written and presented on the topic before industry audiences.
The issue of counterfeit and inferior parts has gained C-level visibility across industries as front page articles in the Wall Street Journal and cover stories in business magazines have raised public awareness of the dangers that counterfeits present.
Tools that enable a practice known as ‘standards management’ can reduce total cost of ownership, risk, and inefficiency when implementing a myriad of standards designed to thwart counterfen.
The fight is on to put a stop to counterfeit parts and SAE International has led a G-19 group of worldwide leaders to combat this growing concern. Are you aware of the new trio of anti-counterfeiting standards the G-19 has developed? Do you know what these standards, like DoD-adopted AS5553, mean to your role in the supply chain?
The electronics supply chain is still grappling with how to mitigate the dangers of counterfeits. However, many companies in the sector are already putting in place effective programs aimed at reducing, if not eliminating, the counterfeit risk. This whitepaper briefly describes the scope of the problem and the government and industry reaction, and then offers a look at how one company, L-3 Communications, is approaching this thorny issue.
The past three years have been a stark reminder of the impact of downside and upside volatility on the supply chain. A V-shaped economic recovery has companies scrambling and in need of strategies to manage everything from market demand and price volatility to material shortages and counterfeit parts. Download this report to gain strategies for responding to these market pressures.
Counterfeit and inferior components are a real and present threat to the supply chain. This threat is not new, of course, but recent studies suggest that the threat is growing. For example, a recent survey by the Bureau of Industry and Security of the US Department of Commerce showed the incidence of counterfeits increasing steadily over the past three years. Recent mainstream media coverage has highlighted the risks to product performance, operations and regulatory compliance from inferior components and fakes in high-reliability markets like the military and medical devices.
In the electronics supply chain, up to 10 percent of technology products worldwide are counterfeit, equating to roughly $100 billion in global product sales. Counterfeits continue to be a pervasive and growing threat to the supply chain. In this report, Mark Snider with ERAI, Inc., addresses the need for a proactive, comprehensive strategy for mitigating the counterfeit risk.
Today's marketplace is characterized by risk, uncertainty, and volatility. Capabilities for product engineering, obsolescence management, and counterfeit risk mitigation are more important than ever before. IHS offers the industry's largest electronic and electro-mechanical component management solution in every regard – the greatest part counts, manufacturer coverage, part parametric properties, historical part information, depth of BOM analysis, and breadth of commodity coverage. The company's industry-leading solutions are available in a wide array of top-tier, mid-tier, and low-tier product options that offer the flexibility of choice that our customers need to maximize their value. With access to information on more than 265 million physical devices, along with intuitive tools for integration into engineering design processes and applications, IHS provides the most advanced component selection and procurement decisions for military and commercial applications.
Through integration to the world's largest and broadest electronic and electro-mechanical component management solution, IHS counterfeit market intelligence grants access to the datasets, tools, experts, and expert analysis needed to implement a risk-based approach to minimize the impact of counterfeits. Design and sourcing decisions can be kept within the trusted supply chain through IHS access to government qualified suppliers, the enforcement of approved supplier/vendor/manufacturer lists, and the availability of parts and their alternates from original component manufacturers (OCM) and authorized distributors to aftermarket suppliers and – where necessary – lower-risk brokers or independent distributors.
Counterfeit, Substandard and High Risk Part and Supplier Intelligence capabilities:
IHS-ERAI Solution: Exclusive access to the most complete, authoritative and up-to-date reporting, investigation services, and risk assessment tools for thousands of parts and suppliers in order to profile potential counterfeit, substandard and high risk parts.
BOM, Obsolescence and Component Management capabilities:
Industry Standards & Regulations:
Government Qualified Products and Procurement Intelligence capabilities
IHS Haystack Gold: The Haystack Gold logistics management system contains more than 3,470 documents containing over 85 million parts qualified and tested against Military Specifications by the US Government. Haystack gold provides access to over 180 million part records, and includes procurement history for both government and industry sectors that provides easy access to information on the source from which the government purchased the item, what was paid and how often the item was purchased.
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