How Can Labeling Combat Electronics Counterfeiting?

by Joe Longo, on February 7, 2017

Some reports estimate that up to 8% of total market revenue for electronics components are diverted through the gray market. For the semiconductor industry alone, which earned almost $336 billion in 2014, the gray market could account for up to $26.8 billion! How can you leverage innovations in Enterprise Labeling to help fight this growing epidemic of electronics counterfeiting?

For starters, a standardized and centralized approach to electronics labeling—a key cornerstone of an enterprise labeling solution—provides tighter control of the creation and print distribution of labels. This gives the original manufacturer complete oversight of the issuance of serial numbers to be applied to the labels. This is the main foundation of the traceability solution that the electronics product will need as it traverses across the supply chain (e.g., distributors, 3PLs, transportation providers, customers) to the end user.

Now there are multiple providers of track and trace solutions, but the label serialization starts at the centralized location of the manufacturer. By providing tight security and control of the original serial numbers, electronics companies can easily verify the authenticity of the product during the verification process. One way to create a “first line of defense” in the process is to allow approved suppliers and distributors to have acces to a streamlined labeling solution. Standardization of barcode labeling solutions with approved suppliers and distributors can greatly diminish the likelihood of obsolete or counterfeit electronic components making their way into the supply chain.

Get more answers to your pressing labeling and supply chain questions, and download the new Q&A document, “Why Barcode Labeling Matters in Electronics.” This quick, easy-read paper addresses the top-of-mind challenges electronics manufacturers face, while providing insight into the significant gains that could be realized using the right labeling solution.