About this Video

• Video Title: Counterfeiting in the Supply Chain, CAPS Research
• Channel: CAPS Research
• Speakers: Rob Hanfield, Anna
• Duration: 00:02:42

Introduction

This video discusses the growing problem of counterfeiting in supply chains. Two professors of supply chain management, Rob Hanfield and Anna, present research findings on identifying sources of counterfeiting, controlling these elements, and preventing future occurrences through technology and collaboration.

Key Takeaways

• The scale of the counterfeiting problem: The cost of counterfeiting has grown significantly, reaching $600 billion in 2018 and projected to reach $1.8 trillion in the following three years. This surpasses the GDP of many countries.
• Contributing factors: The rise of e-commerce, lack of awareness regarding product component origins within companies, and consumer behavior all contribute to the expanding problem.
• Impact across industries: Counterfeiting affects various industries, not just luxury goods; it impacts airplane components, pharmaceuticals, and numerous consumer goods.
• Research questions addressed: The research explored how to identify counterfeiting sources, control contributing elements, and implement short-term and long-term preventative measures through technology and supply chain collaboration.
• Proposed framework: The research resulted in a framework for supply chain managers to systematically address counterfeiting issues. This highlights the shared responsibility, with a key role for the supply chain function.

my name is Rob Han field and I'm gonna professor supply chain management in the pool college of management at NC State University I'm also executive director of the supply chain resource cooperative yeah my name is Anna and I'm a professor of operations and supply chain management at the proud College of Business at Michigan State University no procurement is specifically you know in the the interface that you have with suppliers you know not only when you're doing audits but I think when you're building contracts in relationship counterfeiting should be something that's explicitly addressed don't defeat problem has grown over time 2018 it was already six hundred billion and the next three years or so it's going to be 1.8 trillion dollars problem which is more than the GDPs of many countries why exactly has it become such a big problem there's obviously a lot of e-commerce movement and as you get into Internet the chances of having counter feeding activities within your processes actually increase many fold the other thing which we also observed was that many times companies don't even know we're very exactly their product components are coming from and the last thing which we also observed was that a consumer behavior has something to do with the scale at which counter feeding is expanding so most of the time they think that it's really it doesn't really matter if you buy a t-shirt we just come to feed so what but then obviously they don't realize the ramifications of that good transient as far as basically financing terrorism activities the three main research questions were how how are you going to identify sources of counterfeiting how can you sort of control those those elements what are the things you can do in the short term and and begin to attack the sources but then also in the longer term what are the things you can do to prevent counterfeiting both in terms of technology but more along the lines of collaboration with partners in the supply chain one of the interesting things that we found was you know every industry is impacted by this some people think it's only just luxury goods or t-shirts or shoes it impacts airplane components it impacts pharmaceuticals it impacts consumer goods in one executive even said to us he said if you think your industry isn't impacted by counterfeiting then look again it is and you just don't even know it they were able to actually come to a proposed framework that we present in our report of how supply chain managers can tackle this issue in a systematic way it's a joint responsibility and supply chain function has a very important role to play