This week, we are continuing to look at ways small companies can protect themselves against counterfeit goods.
One of the ways counterfeit goods get to market is through gaps in the supply chain. Many companies don’t have the time or manpower to inspect incoming goods. In some cases, random inspection or testing can spot problem products. But more often than not, manufacturers rely on their suppliers to deliver quality goods.
But how much do you know about the companies that your suppliers buy from? Anti-counterfeiting experts say all members of the supply chain should hold their partners accountable for the products they supply. This can be done by:
· Including provisions in purchasing contracts to hold sellers responsible for fraudulent goods
· Including financial penalty provisions for suppliers that fail to comply
· Considering legal remedies if suppliers provide inferior goods
· Developing options for rehabilitating suppliers that don’t currently use good practices
· Developing options for delisting supplier as trusted source of raw materials and components for repeated failures to comply