Symposium Conference Proceedings


Authors: Jacklin Adams, John Quick, *Celine Chong, Teresa Yu, Anthony Spielberg, Stephen Chong
Company: World Wide IBM Integrated Supply Chain
Date Published: 5/19/2011   Conference: Symposium

Abstract: Counterfeit electronic components pose a significant and pervasive threat to the integrity of the global supply chain. The existence of counterfeit material at any level of product assembly, from silicon wafers through packaging substrates to finished components, can contaminate the manufacturing pipeline at all later stages of assembly. Complex global distribution systems can quickly spread such contamination across national and corporate boundaries. A single batch of counterfeit components can affect products from many companies, including those producing subassemblies and final assemblies – companies who may have neither visibility into, expertise in, nor the ability to manage, component-related issues. Component supply and demand volatility in the electronics industry fuels the susceptibility of its supply chain to contamination by counterfeit components. The cyclic economic nature of the industry makes component shortages a common and recurring problem. This problem is aggravated by other market constraints including environmental compliance requirements, natural disasters, and shortages of raw materials. Component shortages raise the market value of counterfeit material, increasing the likelihood of its introduction into the supply chain. Global concern over sustainability is causing companies to put additional emphasis on reducing consumption of resources and optimizing supply-chain logistics. This drives continuing change in supply-chain systems, and introduces additional opportunities for the introduction and distribution of counterfeit components. This paper describes systems for controlling parts and material to minimize exposure to counterfeit components. These systems integrate strategic corporate policies, operational management practices, and enabling tools. A vision for the future of this issue, and how to drive continuous improvement in its management, is discussed. Key words: Counterfeit Part, Integrated Supply Chain Management System

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