Then, we’ll look at a framework that can help you develop a supply chain provenance strategy that addresses all of your risks. Let’s look at the eight common types of product fraud that affect many companies. Manufacturing companies and brand owners also need to prepare for the risk that criminals could be selling replicas of their products. As we come to terms with this enormous issue, we need to stop and ask how we can truly know whether the products we buy were made in the right facilities, using the correct materials and processes, and whether they were actually approved for use. It can expose companies to huge liabilities, and it’s also a well-known source of funding for organized crime and terrorist organizations.īut managing provenance is a new challenge for supply chain professionals. Supply chain fraud is not a victimless crime. To put that into perspective, the global trade in fake goods is equivalent to the entire GDP of Canada! If your company hasn’t felt the effects of counterfeit products, then you’ve either been very lucky, or else it’s happening and you just don’t realize it.
How big is this problem? Right now, the International Chamber of Commerce estimates global trade in counterfeit goods to be $2 trillion. In other words, we need to know what the products are, where they’ve been, and what’s happened to them along the way-because companies that don’t manage supply chain provenance are easy targets for criminals who commit product fraud.
#ITRACE FOR DUMMIES FULL#
Today, we’re starting to hold supply chain professionals accountable for knowing the full provenance of the products that our companies buy and sell. But while today’s global marketplaces have created many exciting opportunities, they have also allowed counterfeit products to reach epidemic proportions around the world. The Supply Chain Management Blog covers the latest in SCM strategy, technology, and innovation.ĥ Elements of a Successful Supply Chain Provenance StrategyĪdvances in digital commerce and international logistics have transformed our supply chains.
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