The Center for Responsible Enterprise and Trade (CREATe) has released a new whitepaper that outlines the pervasiveness of counterfeit products within global supply chains, according to an article from Circuits Assembly.

The report – Health and Safety Risks from Counterfeits in the Supply Chain – highlights examples where counterfeits have infiltrated supply chains in industries such as defense, foot, transportation and pharmaceuticals:

  • ·         A recent U.S. Senate committee report described 1,800 known cases of suspect counterfeit electronic parks in the defense supply chain, supplied by more than 650 companies.
  • ·         Up to 40 million prescriptions are filled with counterfeits every year in the U.S.
  • ·         The FAA has estimated that more than 520,000 counterfeit parts are installed on planes every year.
  • ·         Mattel recalled approximately 2 million toys and paid a $2.3 million civil penalty for importing Barbie accessories, die-cast toy cars and other toys coated in toxic lead paint, exposure to which can stunt children’s mental and physical development. The company traced the problem back to the Chinese companies that had supplied the tainted paint to Mattel’s contract manufacturers in China, Circuits Assembly reports.

The whitepaper provides leading practices for organizations to implement in order to strengthen the integrity and security of their supply chains as a vital part of establishing flexible, efficient and cost-effective solutions, including, according to Circuits Assembly:

  • ·         Foster greater cooperation, coordination and accountability among all participants;
  • ·         Increase information-sharing to strengthen supply chain integrity;
  • ·         Include provisions in supplier contracts that facilitate and improve oversight;
  • ·         Calibrate supplier assessments according to the risk level; and
  • ·         Ensure that supplier requirements flow down to subcontractors.