Compliance & risk
Counterfeit parts risk
Counterfeit parts risk is the exposure to receiving components that are misrepresented in origin, specification, or condition — relabelled, salvaged, or fraudulently marked. The risk rises sharply during shortages, when buyers are pushed toward unfamiliar sources to find stock.
Shortages create the conditions
Counterfeit parts enter supply chains through predictable openings: an allocated component, an urgent build, and a source offering stock that authorised distributors cannot supply.
The pressure is real rather than hypothetical. A buyer facing a stopped line and a broker with available stock is making a decision under duress, and the incentive to source first and verify later is strongest exactly when verification matters most.
Controls that actually hold
Effective controls are procedural rather than intuitive.
- Buy through franchised or authorised channels wherever supply allows.
- Require documented traceability to the original manufacturer for independent purchases.
- Route any AVL or AML deviation through engineering approval, not procurement discretion.
- Apply inspection and test proportionate to the source's provenance.
- Keep a record of what was bought from whom under which approval, so the decision is reviewable later.
Frequently asked questions
What is counterfeit parts risk?
Counterfeit parts risk is the exposure to components misrepresented in origin, specification, or condition — including relabelled, salvaged, or fraudulently marked parts. It is most acute during allocation, when buyers must look beyond authorised channels to find stock.
How do you reduce counterfeit parts risk during a shortage?
Prefer franchised channels where supply exists, require documented traceability to the original manufacturer for independent purchases, route AVL and AML deviations through engineering approval, and inspect in proportion to the source's provenance. Keeping a reviewable record of each decision is what makes the controls auditable.