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Supply chain integrity combats counterfeit electronics

Supply chain integrity combats counterfeit electronics

The electronics industry is everchanging and the product lifecycle has shortened immensely. What hasn’t changed is the challenge of counterfeit electronics. Our partners at Loftware share how supply chain integrity combats counterfeit electronics.

Counterfeit electronics affect manufacturers, customers, and the health and safety of consumers.  “The Electronics Reseller Association International (ERAI) Inc. reported that up to 768 counterfeit electronic components circulated the market in 2022, a year-on-year increase of 35%.” Counterfeit components cost the industry billions of dollars annually, eliminating these resources from more innovative and beneficial business areas.

One of the first lines of defense against counterfeiting is serialization. “Unique serial numbers are designated to each product through complex algorithms that originate from a separate database integrated with the manufacturer’s production line.” These numbers follow the product through the supply chain so it can be reliably tracked back to the source. Traceability like this has become paramount in the supply chain and serialization helps ensure authenticity.

An additional defense is labeling automation. Cloud-based labeling enables you to standardize the process with suppliers and distributors so there is little room for error or the ability for counterfeit components to find their way into the supply chain. Cloud-based labeling provides labeling consistency and reliability in a secure environment and paired with serialization, delivers a steadfast amount of security and tracking of electronic components to “save billions of dollars and prevent other safety concerns and environmental disasters.”

As the momentum behind cloud-based labeling solutions grows, the Pragmatyxs team remains dedicated to enhancing their clients’ supply chain security and improving their labeling solutions.