You Should Know

May 22, 2012 BY David Beaudet

News of up to a million of fake electronic parts being used in military aircrafts has the US government worried about national security and the safety of its servicemen.   Besides criticizing China for its inability to eliminate, or at least reduce the number of counterfeit manufacturers, the Senate committee blames weaknesses in the US supply chain for creating vulnerabilities that are putting lives at risk.

Not surprisingly, the risk of losing some degree of control over your supply chains increases when outsourcing globally, and this applies even in areas where an operation’s failure to function properly could have catastrophic consequences.

For most of people with a less dramatic perspective on their operations, traceability and the ability to know what is finding its way into their products still remain paramount to an organization’s success (let’s not neglect the implications that exist in food / pharmaceuticals distribution).  Whether you are a manufacturer or a distributor, you should be informed on the origin of what is coming through your doors.  Obviously, this is easier said than done but nevertheless, any company should have processes in place to ascertain a supplier’s background when he is added to the list.

In times where logistics performance and costs reduction are the priority, it is crucial to the integrity of a supply chain that these goals are not achieved at the expense of quality and safety.  Or else, the blame is on you... or China.

Read more here.