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The Impact of Trading Counterfeited Vehicle Spare Parts across the Local Supply Chain: Case of Moshi Municipality

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Abstract

The influx of counterfeit vehicle spare parts in the local supply chains has reached an alarming rate, with vehicle owners often being victim to dubious traders who sell them contrabands under the guise that the spare parts are indeed genuine. In order to exhaust the magnitude of the problem, the study aimed at identifying the factors driving suppliers/dealers and consumers to trade counterfeited vehicle spare parts across the supply chain and examining the effects of trading counterfeited vehicle spare parts on the supply chain. A survey research design was employed to conduct the study which allowed the collection of adequate data from a sizeable population in a highly economical way. Multiple approaches including questionnaire, interviews and documentary review were used to gather both primary and secondary data which enabled researchers to do triangulation. Findings revealed that suppliers and customers trade counterfeited vehicle parts for a number of reasons including price affordability and inadequate awareness. This has resulted to a various effects to the participant in the local supply chain such as accidents, high replacement costs and damaged reputation.
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
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The Impact of Trading Counterfeited Vehicle Spare Parts across
the Local Supply Chain: Case of Moshi Municipality
Faustine Panga* Alban Mchopa
Department of Marketing, Procurement and Supply Management,Moshi University College of Co-operative and
Business Studies (MUCCoBS), P.O.Box 474,Moshi, Kilimanjaro-Tanzania
*E-mail of corresponding author: faustinpanga@yahoo.com
Abstract
The influx of counterfeit vehicle spare parts in the local supply chains has reached an alarming rate, with vehicle
owners often being victim to dubious traders who sell them contrabands under the guise that the spare parts are
indeed genuine. In order to exhaust the magnitude of the problem, the study aimed at identifying the factors
driving suppliers/dealers and consumers to trade counterfeited vehicle spare parts across the supply chain and
examining the effects of trading counterfeited vehicle spare parts on the supply chain. A survey research design
was employed to conduct the study which allowed the collection of adequate data from a sizeable population in a
highly economical way. Multiple approaches including questionnaire, interviews and documentary review were
used to gather both primary and secondary data which enabled researchers to do triangulation. Findings revealed
that suppliers and customers trade counterfeited vehicle parts for a number of reasons including price
affordability and inadequate awareness. This has resulted to a various effects to the participant in the local
supply chain such as accidents, high replacement costs and damaged reputation.
Keywords: Counterfeited products, Vehicle parts and Supply chain
1.0 INTRODUCTION
1.1 Background to the Problem
Counterfeiting of all types is big business these days. In fact, the Federal Bureau of Investigation in the United
States labels counterfeiting as the “Crime of the 21
st
century.” Since the counterfeiting is coupled with piracy,
the global counterfeit vehicle parts trade is now pegged at US$12 billion per year according to World Customs
Organization in Interpol (Menzies, 2010). The counterfeiting business has changed from being largely localized
operations into a highly profitable global business with mass production, global sales and complex global
distribution networks. Counterfeited physical objects can be seen in almost every country and in virtually all
sectors of the global economy (GS1, 2013).
Everyday millions of fake products are being produced and shipped around the world to developed and
developing markets alike at an increasing rate, penetrating legitimate and secure supply chains of automobile
parts. Worse enough the non suspecting buyers who rush for cheap prices cannot distinguish between genuine
and counterfeit goods (Mutalemwa, 2010). This drain on the global supply chains and economy is significant and
the long term implications of this illicit trade are enormous while at the same time consumers are at risk from
using unsafe products, governments and society are being robbed of billions in tax, income and jobs (GS1, 2013).
As the automobile industry has grown, a big share of the cake has been grabbed by counterfeit spare
part dealers. As the number of cars on roads balloons, spare parts business has increasingly become lucrative
ranging from authorized dealers to quacks and vehicle parts. Dealers have sprouted like milk and bread shops in
various countries. Today, the influx of counterfeit automobile spare parts in the automobile industry has reached
an all time high, with motorists often being victim to dubious traders who sell contrabands under the guise that
the spare parts are indeed genuine (Chepkwony, 2013).
Therefore, trading of counterfeited products across the supply chain is a serious and expanding
problem that harms consumers, industry, and governments. Its scope suggests the need to understand and
respond to it at the national and international levels. As pointed out by Heinonen and Wilson (2012) many of
its aspects are identified at the local level and state policymakers must also address product counterfeiting more
locally by understanding the specific nature of the problem and the risks involved.
1.2 Statement of the Problem
The impact of product counterfeiting is broad and far-reaching as it jeopradises public safety, undermines
legitimate business and harms national interests. It results in the public having less diversity in product choice by
decreasing incentives for industry innovation (Heinonen and Wilson, 2012). More important, it poses
considerable health and safety risks but also harms industry. Some obvious examples are lost revenue, market
share and profits. The Motor and Equipment Manufacturers Association (MEMA) cited estimates suggesting that
“counterfeiting costs the global motor vehicle parts industry $12 billion a year and $3 billion in the United States
alone (MEMA, 2009).
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Companies also incur intangible costs, such as damages to brand value or reputation resulting from
poor-quality counterfeits. The costs of product counterfeiting can also reduce incentives to innovate or develop
new products. Furthermore, counterfeiting strains government resources as it loses considerable tax revenue
from the sale of counterfeit products while at the same time, must allocate resources to combat product
counterfeiting (USGAO, 2010). The G20 member countries have an estimated 3,000 deaths annually due to
counterfeit consumer goods. Not only that but also legitimate businesses must compete with counterfeiters while
brand owners and Intellectual Property Rights (IPR) holders face significant business and financial risks (GS1,
2013). The motor vehicle parts industry (manufacturers who produce the parts and components used to repair
everything from passenger cars to over-the-road trucks) have been hit hard by counterfeiting in its global supply
chains.
It is estimated that counterfeiting costs the global motor vehicle parts industry at projected global
losses as high as US$45 billion by 2011. In addition to the other considerations listed above, counterfeit motor
vehicle parts pose serious safety risks to unsuspecting consumers. Counterfeit motor vehicle parts may not meet
safety standards and the criminals who produce these parts frequently use dangerous, inferior materials in
production. As a result, these counterfeit parts which may look identical to quality, brand name parts can
endanger the repair professional installing the part, the car or heavy duty truck driver operating the vehicle and
all motorists travelling the same roads with these vehicles (MEMA, 2009).
Surprisingly, to a great extent the public view of counterfeit products is one of the ambiguity, it is
often seen as victimless crime, which of course is far from the truth. This is lack of appreciation of the threat of
counterfeits actually encourages and supports its continued growth. As the business is growing, the major threats
from counterfeits ranges from jeopardising safety, reduced market for legitimate business to reduced government
revenue (GS1, 2013). For these reasons global solutions are needed to address the ever-growing threats presented
by this flourishing criminal activity. In essence, current supply chains are not fit for purpose in terms of their
ability to protect and detect counterfeit penetration into legitimate and secure supply chains.
Therefore, the study aimed at analysing the impact of trading counterfeited vehicle spare parts on the
performance of supply chain system with a focus in the domestic supply chain in the Moshi Municipality in the
Kilimanjaro Region. In order to exhaust the aforementioned objective effectively, the specific research
objectives oriented towards identifying the factors driving suppliers/dealers and consumers to trade counterfeited
vehicle spare parts across the supply chain and examining the effects of trading counterfeited vehicle spare parts
on the supply chain players.
2.0 LITERATURE REVIEW
2.1 Conceptual Definition
Counterfeit Products is an imitation, usually one that is made with the intent of fraudulently passing it
off as genuine. Product counterfeiting and trade in counterfeit products, labels and packaging involve imitation
of genuine products that are marketed under brand names. Counterfeit auto parts are imitations of the original
parts which replicated and marked in order to represent them as original parts thereby causing the weary buyer to
purchase the same believing to be originals (Chepkwony, 2013). Hence, counterfeited automotive parts mean
imitated goods which are to be installed in or upon a motor vehicle so as to replace components of that vehicle,
including goods such as lubricants which are necessary for the use with the exception of fuel.
According to Fujitsu (2010) the most common counterfeited automotive parts are brake shoes, brake
pads, steering linkages, air filters, spark plugs, wipers and car interior accessories. Safety is definitely
compromised with the low quality of such fakes. When substandard metals are used, for example, the parts are
most likely to succumb to shearing. Accidents have been reportedly caused by a fake wheel and even a fake
brake shoe made out of compressed grass.
Supply Chain is that network of organisations that are involved through upstream and downstream
linkages in the different processes and activities that produce value in the form of product and services in the
hands of the ultimate customer or consumer (Lysons, 2006). The linkages in the supply chain represent the
coordination of supply chain processes and relationships. The upstream linkage means “against the current” and
related to the relationship between an enterprise and its suppliers and suppliers’ suppliers. On the other side,
downstream is “with the current” and relates to the relationship between the enterprise and its customers. Hence,
the supply chain system of the auto parts constitutes both the upstream and downstream linkages.
2.2 Legitimate and Counterfeit Auto Parts Supply Chains
The legitimate supply chain deals with managing supply and demand, sourcing raw materials and parts,
manufacturing and assembly, warehousing and inventory tracking, order entry and order management,
distribution across all channels, and delivery to the customer. In order to understand how counterfeit parts end up
on cars, trucks and commercial vehicles, it is important to understand the legitimate supply chain of auto part
which includes both original equipment channel, which includes the original equipment vehicle manufacturer
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and the subsequent replacement parts sales and/or repair through original equipment dealerships, or the
aftermarket, which supplies parts and components which are added to or replaced on vehicles after they are
already on the road.
Figure 1: Legitimate auto parts supply chain
As depicted in figure 1 above, the legitimate supply chain, the raw material and component suppliers
are responsible for the supply of these to the manufacturer. The manufacturer in turn produces finished parts
from raw materials and/or components then finished parts are moved to the distribution centre where they are
packaged and shipped to either the original equipment channel or to a warehouse distributor for the aftermarket
supply chain. The warehouse distributor may sell parts to retain chains, which in turn sell the part to a repair
facility, which may be independent or part of a car dealership or the warehouse distributor may sell directly to
repair facilities. Also, parts may be sold directly to the vehicle owner for do-it-yourself repairs.
On the case of counterfeit auto parts, different players enter the distribution supply chain and the methods of
entering the marketplace are diverse – so diverse and convoluted at times that legitimate partners and the
supplier may unwittingly sell unsafe, counterfeit parts to the end user. Counterfeit products are produced by
unauthorized suppliers these parts may appear identical to legitimate products in terms of packaging, branding
and trademarks, but they have been produced without the original manufacturer’s authorization and may
disregard adherence to safety and quality standards (MEMA, 2009).
Figure 2: Counterfeited auto parts supply chain
Source: Customised from MEMA (2009)
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The identified unauthorised suppliers and manufacturers may have links to international suppliers as
subcontractors for production of legitimate parts. The journey of creating and supplying the counterfeited vehicle
spare part can begin from the unauthorised international suppler or domestic unauthorised manufacturer who
produces the products and supply them to the warehouse distributor or through a master distributor. Also, parts
from the master distributor may be sold to a warehouse distributor or directly to the parts store/retail chain, the
repair facility or the end user/vehicle owner. Hence, the supply chain has multiple players with legitimate
interest and financial resources to ensure that the products reach the domestic markets and consumers. This in
return affects the performance of the supply chain through penetrating sub standard products at cheaper prices
which affects customers well being, defeats fair trade practices and the government does not get revenue through
taxation.
2.3 Effects of trading counterfeited auto parts
The use of latest manufacturing and printing technologies, counterfeiters are able to match paints and print boxes,
labels and security codes that mimic those on the genuine products. Many fakes are undetectable to the average
technician or shop owner and the products penetrates the auto parts distribution channel without being notice
leading to major problems to the ultimate customer in the supply chain. Notable effects include the following:
Limited innovations and growth: innovation has long been recognised as a main driver of economic growth and
innovators protect their ideas through patents, copyrights and trademarks. Hence, counterfeiting undermine the
efforts of innovators, the incentive to develop new ideas and products is reduced and thereby weakening the
innovation process which is critical for the success of the auto parts business and the supply chain in general
(OECD, 2007).
Loss of market share: a survey carried out by Toyota Kenya in June 2011 indicated that 8 out of 10 vehicles in
the country have at least one fake spare part. The survey was carried out at the firms dealerships spread across
the country, on vehicles brought in for service within the company. Over 80 percent of Toyota parts in Kenya
were found to be counterfeit and this has eaten into its market share and putting motorists at risk in the country
(Chepkwony, 2013).
Tax revenues: tax collection is presumed to be far more effective from rights holders and their licensees than
from counterfeiters. Potential losses include corporate income taxes, sales or value added taxes, excise taxes,
import tariffs and social insurance charges (OECD, 2007).
Road accidents: many documented vehicle "accidents" have been caused by counterfeit parts, as well. While
bogus spark plugs and other engine parts have merely caused aggravating failures and breakdowns, poorly
constructed brake and suspension parts have resulted in many deaths (Fujitsu, 2010). A number of deaths in
Saudi Arabia were attributed to the use of counterfeit brake pads made of compressed wood chips. In Nigeria,
brake shoe linings made from compressed grass burst into flames when the brakes were applied.
Low consumer utility: the satisfaction that consumers derive from a product is based in large measure on the
quality of the products and/or its performance, taking the price paid for the product into account. When the
quality and/or performance of a counterfeit product is inferior to a genuine product, consumer utility is decidedly
lower for those individuals who pay full price, believing the product that they have purchased is genuine (OECD,
2007).
Damaged brand value and firm reputation: Counterfeit products may damage the brand image and reputation of
firms over time. For instance, those consumers who believed they were buying a genuine vehicle spare parts
when in fact it was a fake, will be likely to blame the manufacturer of the genuine product if the fake does not
work.
3.0 METHODOLOGY
A survey research design was employed to conduct the study which allowed the collection of adequate data from
a sizeable population in a highly economical way. The design was also flexible in data collection as multiple
methods were used to collect data from Suppliers, Drivers and Garage Owners located in Moshi Municipality.
Moshi Municipality is the Kilimanjaro Regional Headquarters located under the Southern slopes of Mt.
Kilimanjaro which lies approximately 3°18 south of Equator and 37°20 east of Greenwich. Purposive and simple
random sampling techniques were used to pick a sample of 60 respondents who were the stakeholders in the
automotive parts and components including dealers of auto parts/ auto shops, the mechanics from different local
garage, drivers and transport officers from different institutions. Multiple approaches including questionnaire,
interviews and documentary review were used to gather both primary and secondary data which enabled
researchers to do triangulation. Data were analysed through applying qualitative techniques that involved the use
of interpretive approach while quantitative techniques involved utilisation of descriptive statistics.
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4.0 RESULTS AND DISCUSSION
4.1 Factors driving suppliers/dealers and consumers to trade counterfeited auto parts
Counterfeiting of vehicle spare parts has earned a global reputation where both tiers of the supply chain are
highly involved knowingly or unknowingly. Through conducting a survey the study aimed at establishing the
factors driving suppliers to sell while customers to buy counterfeited auto parts. Results are presented in Table 1
below:
Table 1: Factors for trading counterfeited auto parts
Attributes Value Frequency (n=60) Percentage (%)
Customers cannot afford to
purchase genuine auto parts
Strongly Agree 13 21.7
Agree 40 66.7
Neutral 1 1.7
Disagree 5 8.3
Strongly Disagree 1 1.7
Counterfeited parts have
greater demand from
customers
Strongly Agree 25 41.7
Agree 30 50.0
Neutral 2 3.3
Disagree 2 3.3
Strongly Disagree 1 1.7
Genuine parts are not
available in the market
Strongly Agree 1 1.7
Agree 19 31.7
Neutral 5 8.3
Disagree 31 51.7
Strongly Disagree 4 6.7
Customers cannot afford to purchase genuine auto parts
Experience shows that most of the customers purchase counterfeits because of price grounds. During data
collection respondents were asked rank their opinion on the ability of the customers to purchase genuine vehicle
spare parts and responses indicate that 13 respondents representing 21.7% strongly agree that customers cannot
buy original or genuine products because of higher price of the products while 40 respondents representing 66.7%
also agreed.
Respondents pointed out that price affordability is the major factor driving them to buy such products
to suit their current needs regardless of the future implications. When interviewed some of them even went
further to argue that since the products are easily affordable they can buy new counterfeited vehicle spare parts
once the previous fails.
The findings coincide with those of Chepkwony (2013) who found out that customers bought
counterfeited vehicle spare parts because it's all they can afford as they are very cheap and come in different
colours, sizes and styles. On the other side 8.3% disagree and 1.7% strongly disagree that price is the major
factor driving customers to purchase counterfeited parts. These respondents pointed out that customers purchase
such items because they are easily available in market. However, researchers ruled out this reason because a
quick observation into the vehicle spare parts shops showed that genuine products are available too in the display
shelves. Hence, results reflect that higher prices of genuine products which customers cannot afford to pay is one
of the reasons that make business people to resort on the counterfeit business of automotive parts and
components.
Counterfeited auto parts have greater demand from customers
The rule of thumb is without demand for counterfeited vehicle spare parts there would have not been supply of
such product across the supply chain. Nonetheless, in order to determine if demand for counterfeits is one among
the driving factors, the study obtained respondents opinions and results indicate that 25 respondents (41.7%)
strongly agreed and 30 respondents (50%) agree that counterfeit vehicle spare parts have greater demand from
customers which highly influence its supply across the local supply chain in Moshi Municipality. The findings
supports those of Rottoh (2011) who found out that counterfeiters will always continue manufacturing and
importing counterfeited parts irrespective of the legal implications as long as there is demand in the market and
recommends that this menace and counterfeiting should be eliminated by all means. Presence of demand at the
end of the supply chain influences other participant into the chain to import counterfeits from unauthorised
foreign suppliers or manufacture the counterfeits domestically in order to suffice the local demand and earn
revenue for themselves. Therefore, availability of demand for counterfeited vehicle spare parts in the local
markets is a pull factor that influences manufacturers, suppliers, distributors and retailers to push the products
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across the local supply chain.
Genuine spare parts are not available in the market
As a result of customers low awareness of intellectual property rights (Cheng et al, 2011) most customers ask for
counterfeits from the retailers. Hence, retailers use this opportunity to orient customers with cheap and fake
products which in return makes the genuine auto parts no to be available in the local distribution channels.
Findings from Table 1 indicate that 19 respondents (31.7%) agreed that suppliers trade counterfeited vehicle
spare parts or fake spare parts because genuine products are not available in the market while 5 respondents
(8.3%) had neutral opinion. Those who agreed argued that absence of genuine vehicle parts in the market
influence customers to be oriented with counterfeits.
However, the majority of respondents (35) representing 51.7%disagreed that trading of counterfeited
spare parts is due to unavailability of genuine spare parts in the market. These respondents were of the opinion
that genuine vehicle spare parts are plenty available in the legitimate local supply chains but customers
themselves prefer counterfeits because they are cheap and easily available. Researchers also were shown local
retailing shops selling genuine parts and only few customers were there but on the other side the retailers selling
counterfeits had a good number of customers. Therefore, regarding this reason it was agreed that suppliers and
customers highly trade counterfeits because of other reasons but not unavailability of genuine auto parts in the
legitimate supply chain.
4.2 The effects of trading counterfeited auto parts on the supply chain players
While globalization has resulted in the lowering of international barriers, it has also created new opportunities
for illegal trade of trading counterfeited vehicle spare parts across the international and domestic supply chains.
This has resulted to various effects to the users of such products who were the customers at the end of the local
supply chain and the study found the following effects (presented in Figure 3) as highlighted by respondents:
Figure 3: Effects of trading counterfeited auto parts in the supply chain
Findings show that 45 respondents (75%) agreed and 12 respondents (20%) strongly agreed that
consumption of counterfeited vehicle parts results into higher rework and replacement costs. It was established
that vehicle owners who had used counterfeited spare parts (knowingly or unknowingly) complained a lot about
the performance of such products in terms of replacing them more often resulting into higher replacement costs.
Also, it was revealed that fixing counterfeited vehicle parts into vehicles resulted into breakdown of the major
parts of the vehicles such as engine, gear box and the braking system. All respondents had a positive response
whereby 21 respondents (35%) strongly agreed that the use of counterfeited spare parts in vehicles can results to
breakage of major critical parts of the vehicles 39 respondents (65%) agreed. Respondents pointed out that those
who have used counterfeited spark plugs, brake pads, brake shoes and filters had an experience of problems with
critical parts of the vehicles such as engine, gear box and braking systems. Hence, the use of such fake products
endangers the well being of the vehicle and the safety of the ones using the vehicle as well as other road users.
Furthermore, result show that 28 respondents (47%) strongly agreed and 30 respondents (50%) agreed
that counterfeited vehicle spares can cause accidents when fixed to motor vehicles. The findings are in line with
those of Fujitsu (2010) who found out that a number of accidents have occurred as a result of fixing counterfeits.
47%
35%
20%
50%
65%
75%
3%
0
5%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Counterfeits cause accidents when fixed to motor
vehicles
Counterfeits results to breakages of major vehicle
parts
Consumption of counterfeits result into higher
rework and replacements costs
Stongly Disagree Disagree Neutral Agree Stongly Agree
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A number of deaths in Saudi Arabia have attributed to the use of counterfeit brake pads made of compressed
wood chips. In Nigeria, brake shoe linings made from compressed grass burst into flames when the brakes were
applied. Some of the local experts pointed out that counterfeited products are substandard and not strong enough
for use in the long distance travel. For example, spares like brake pads and motor vehicle tires when get heated
in the long distance route tend to bust and cause serious damages and injuries. Also, they pointed out that the
counterfeits may not be compatible with the genuine major parts (such as engine) into which the spares are going
to be fixed, hence results into poor performance or damages to the major parts and possible grounds for accidents.
5.0 CONCLUSION
The increasing presence of counterfeited vehicle spare parts in the markets is costing governments and legitimate
traders billions of dollars annually in lost revenues. Counterfeit and gray market of automotive components are a
growing concern and an expensive problem. Through organised illegitimate global and local supply chains the
counterfeited vehicle parts have been able to penetrate every country causing great challenges to the legitimate
vehicle parts supply chain. Findings established that suppliers and customers trade counterfeited vehicle parts for
a number of reasons including price affordability and inadequate awareness. This has resulted to a various effects
to the participant in the local supply chain such as accidents, high replacement costs and damages reputation.
Therefore, it is concluded that trading of counterfeited vehicle spare parts has an impact on the local supply
chain as the key players (customers and retailers) are highly affected basing on quality and financial perspectives.
Nonetheless, in order to curb the supply of counterfeits in the country, other initiatives should be undertaken
along with those already done by International Agencies, Tanzania Bureau of Standards (TBS) and Fair Trade
Commission (FTC). The new initiatives should be focused on conducting awareness campaigns about the
situation of vehicle spare parts counterfeit business in the country and its effects in the supply chain and to the
country’s economy in general. Also, suppliers, retailers and consumers should be trained or sensitised about
intellectual property right, patents rights and other legal or policy issues regarding counterfeits. Lastly, a light
approach of dealing with the problem is to provide discounts or promotions campaigns from marketers of
retailers would help reach potential customers and once customers believe that the price is reasonable and
affordable they may become used to purchasing original vehicle spare parts and develop brand loyalty.
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Chepkwony, F., (2013). The Counterfeiting of auto parts in Kenya, Anti Counterfeit Agency
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Consequences of Counterfeit Products,’ Los Angeles, CA: Los Angeles County Economic
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Fujitsu (2010). Counterfeit Auto parts: Problem or Disaster, available online at
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GS1 (2013). White Paper: The need for global standard and solutions to combat counterfeiting
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Michigan, the Anti-Counterfeiting and Product Protection Program (A-CAPPP) at Michigan State
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... Counterfeiting in the automotive industry is even worse, because counterfeiters can take the advantage of large batch of vehicle parts, hard to be physically distinguished from the original parts [5]. The World Customs Organization in Interpol estimated the global counterfeit vehicle spare parts market value was $ 12 billion per year [6] and the U.S. automotive parts industry has lost $3 billion in sales due to counterfeit goods [7]. ...
... In this investigation, the detected X-ray intensities at the typical component region and the tagging region were converted from Eq. (5), as illustrated in Eqs. (6) and (7) ...
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The aerospace, automotive and medical industries are suffering from significant number of counterfeited metallic products that not only have caused financial losses but also endanger lives. The rapid development of additive manufacturing technologies makes such a situation even worse. In this investigation, we successfully applied a novel hybrid powder delivery selective laser melting (SLM) approach to embed dissimilar tagging material (Cu10Sn copper alloy) safety features (e.g. QR code) into metallic components made of 316 L stainless steel. X-ray imaging was found to be a suitable method for the identification of the embedded safety features up to 15 mm in depth. X-ray fluorescence was used for the chemical composition identification of the imbedded security tagging material. A criterion for the selection of tagging material, its dimensions and imbedding depth is proposed. The multiple material SLM technology was shown to offer the potential to be integrated into metallic component production for embedding anti-counterfeiting features.
... The impact of using counterfeit parts is very detrimental to consumers, from vehicle damage to loss of life because of the vehicle's lousy condition. Because the impact is very damaging, the government invites everyone to be aware of counterfeit spare parts sales and report it [1] [2]. The problem of counterfeit vehicle parts occurs in various countries so that many studies are looking for solutions with technology to combat counterfeit parts [3][4] [5][6] [7]. ...
... The use of blockchain technology in vehicle maintenance workshops is related to the widespread circulation of counterfeit vehicle components. The use of counterfeit vehicle components can result in vehicle damage and even loss of life due to malfunction components [2] [3][4] [5]. ...
... Besides the rapid development of the automotive industry, it also triggers question regarding the automotive component such as components forgeries (Adam Samudra, 2017) (Andika, 2018). The use of counterfeit automotive part potentially creates a bad image of the company, financial impact to customer safety threat (Panga and Mchopa, 2014). From these lessons, SCM becomes a central concern to develop and new regulation in the automotive area has been launched (Minister of Transportation Regulations No. 33/2018) by the ministry of transportation to increase the safety aspect. ...
Thesis
Full-text available
The automotive industry has rapidly developed and overrun the market for the last decade. In this context, automotive components or parts are essential factors to manufacture automotive products. Undoubtedly, the supplier that provides the automotive components or inbound logistics becomes a critical party of Supply Chain Management activity. In this frame, the failure of inbound logistics potentially creates a severe implication to the automotive industry in terms of the financial effects, company image to damage the customer. Arguably, the supplier activities encompass the continuity of automotive components delivery, on-time delivery schedule, supplier and customer relationship maintenance, and financial operation. In this point, the problem identifies the distribution of automotive components and stock maintenance. Therefore, this qualitative research is essential to explore a proposed Blockchain Technology model in Supply Chain Management (BlcSCM), especially in the automotive component industry. On that basis, design science research methodology facilitates to create a proposed model, Leavitt Diamond. In this model, the essential factors (people, process, technology, and organization) merges with supply chain management. Finally, it refers to the Blockchain Technology model in Supply Chain Management.
The CounterfeitingA False Bargain: The Los Angeles County Economic Consequences of Counterfeit Products
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Importation of counterfeit products, what should be done?
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A False Bargain: The Los Angeles County Economic Consequences of Counterfeit Products
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Product Counterfeiting: Evidence Based Lessons for the State of Michigan, the Anti-Counterfeiting and Product Protection Program (A-CAPPP) at Michigan State University Lysons
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Why Counterfeit Automotive are Scary
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Intellectual Property: Observations on Efforts to Quantify the Economic Effects of Counterfeit and Pirated Goods
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