Saturday, 16 November 2013

How big is the problem of fake parts or counterfeits are used in military equipment, systems, or vehicles?

Rory King, Global Director, Strategic Product Marketing, Design and Supply Chain products and services at IH... (more)
40% of the U.S. Defense Supply Chain is Impacted by Fake and / or Damaged Parts, many or most of which are said to come from China.
40% of the US defense supply chain is reported (by the government) to be
 compromised by damaged or fake parts, said to originate primarily from
China. This figure has been cited in numerous industry articles and news
 headlines since tracing back to a popular DailyTech LLC article, “U.S. GOA: 40 Percent of Defense Supply Chain Damaged by Chinese Parts” (http://www.dailytech.com/article...). 

According to this article:  “the U.S. Government Accountability Office (GAO), the audit, evaluation, and investigative arm of the U.S. Congress has been busy investigating reports of fake and/or damaged parts in the U.S. supply chain.” “[t]he GAO claims that 40 percent of the U.S. Department of Defense's supply chain is adversely impacted by fake or defective parts. From missiles, to rifles, to vehicles, problems abound.  The common thread, says the GAO, is that virtually all the suspect parts originated from contractors in China.”

When considering the complexity of global supply chains, it’s worth note that 40% is a quantification of the current state of the problem, not a reflection of the potentially larger issue of how many vulnerabilities (points of failure or entry points in the supply chain) which are being exploited by counterfeiters and subsequently remain difficult to shut down and defend.  Therefore, “staggering”
and “shocking” almost don’t do the numbers justice when 40% of the DoD supply chain is believed to be compromised
  
 
 
 
Rory King, Global Director, Strategic Product Marketing, Design and Supply Chain products and services at IH... (more)
40% of the U.S. Defense Supply Chain is Impacted by Fake and / or Damaged Parts, many or most of which are said to come from China.
40% of the US defense supply chain is reported (by the government) to be
 compromised by damaged or fake parts, said to originate primarily from
China. This figure has been cited in numerous industry articles and news
 headlines since tracing back to a popular DailyTech LLC article, “U.S. GOA: 40 Percent of Defense Supply Chain Damaged by Chinese Parts” (http://www.dailytech.com/article...). 

According to this article:  “the U.S. Government Accountability Office (GAO), the audit, evaluation, and investigative arm of the U.S. Congress has been busy investigating reports of fake and/or damaged parts in the U.S. supply chain.” “[t]he GAO claims that 40 percent of the U.S. Department of Defense's supply chain is adversely impacted by fake or defective parts. From missiles, to rifles, to vehicles, problems abound.  The common thread, says the GAO, is that virtually all the suspect parts originated from contractors in China.”

When considering the complexity of global supply chains, it’s worth note that 40% is a quantification of the current state of the problem, not a reflection of the potentially larger issue of how many vulnerabilities (points of failure or entry points in the supply chain) which are being exploited by counterfeiters and subsequently remain difficult to shut down and defend.  Therefore, “staggering”
and “shocking” almost don’t do the numbers justice when 40% of the DoD supply chain is believed to be compromised