Product Integrity Concerns in Low-cost Sourcing Countries: Counterfeiting within the Construction In

Publication No

RS264-1

Type

Research & Development Product

Publication Date

Aug 01, 2010

Pages

Research Team

RT-264

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DOCUMENT DETAILS

Abstract

Key Findings

Filters & Tags

Abstract

Recent incidents on a project being constructed by a prominent CII member involving the use of counterfeit products has generated an increasing interest in counterfeiting among CII member organizations. To support this industry interest, CII formed Re

Key Findings

According to the data, China is the primary originator of counterfeit goods. The U.S. is the most common destination, followed by China and Canada. (RS264-1, Table 3, p. 26)

The most commonly counterfeited items are steel, fasteners, valves, pipe, and, finally, electrical components. (RS264-1, Table 5, p. 27)

This research focus was on “Class B” counterfeit products, goods and materials clearly produced with the intent to deceive end customers. (RS264-1, p. 3)

Class A – Goods produced by means of patent piracy; high-end goods that are as close as possible to real merchandise.
Class B – Goods that look nearly identical to genuine product, but that possess sub-standard internal components and may cause catastrophic failures; products that consumers would normally least suspect; deficiencies would not normally be detected by typical quality assurance systems.
Class C – Obvious junk; poor quality goods that are easy to spot.

Maintaining the integrity of the supply chain is the most effective way to combat the problem of counterfeit products. This research recommends that organizations adhere to the following guidelines:

Training and education of supply chain personnel on the hazards of counterfeit goods and how to prevent and mitigate the damage from counterfeit items in the supply chain
Organizations need to develop and adhere to a qualified supplier program
Create a testing and inspection program for receipt of products and goods
Adopt a zero tolerance policy regarding counterfeiting

Filters & Tags

Knowledge Area

Procurement & Contracts, Quality Management

Project Phase

Procurement

Project Function

Procurement & Contracts, Operations & Maintenance, Health, Safety & Environmental, Risk Management, Quality Management

Industry Group

Light Industrial, Heavy Industrial, Buildings, Infrastructure

Research Topic

Product Integrity Concerns in Low-Cost Sourcing Countries

Keywords

Third-party Verification, Counterfeiting, Quality, Fraudulent Products, Supply Chain, Product Integrity, Low Cost Sourcing, Traceability, rt264

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