Counterfeiting is not a new phenomenon in the African market, but it is quickly making its way into supply chains across the continent and triggering crises for many organizations or businesses.
Almost every other product has been counterfeited from music CDs, movies, food, drugs, bags, and other items. There has been no shortage of counterfeit items over the years.
The data is similar across multiple industries, with Africa and Asia taking the lead. The problem is not new, but it is beginning to creep into various supply chains on the continent.
As businesses and organizations seek to reduce the cost of their supply chains, they are putting pressure on procurement to source cheaper items. The challenge with cheaper is that cheaper comes with a lot of problems. In the same way, being expensive doesn’t always mean quality.
Why is Counterfeiting a Big Challenge For African Supply Chains
There are two main reasons why counterfeited goods in the supply chain are problematic for many businesses and organizations. The first is customer health and safety, and a close second is brand reputation.
No business wants to be responsible for the health deterioration of any of its customers. Besides the moral issues, it is a PR nightmare for any business and supply chain.
Remember Samsung and the exploding batteries? Luckily, there were no lives affected. However, the company took a major hit, and they are still trying to recover in some international markets.
Considering the current economic crisis hitting the continent, such a bad PR could end many businesses. Although many more supply chains are beginning to source cheaper and not so better, the consequences are not worth it.
How to Battle Counterfeiting in African Supply Chains
There are three key ways businesses in Africa can battle counterfeiting in their supply chains. And we will explore them in this section of the article.
1. Know Who You Are Getting into Bed With
In an increasingly competitive market, supply chains must produce better and cheaper products. The best way they can do this is by collaborating with vendors who are experts in different facets of the supply chain.
However, not all suppliers are the right fit for a business or its supply chain, and it is important to flush them out. To not take this seriously is to expose the supply chain to a lot of bad-faith players, and it could eventually disrupt the entire system.
Some of the ways to do this are by conducting proper research on the suppliers and the market pedigree, evaluating their expertise, and assessing their capacity. You want these three in place before getting in bed with any supplier.
When you have thoroughly settled those three, you may start negotiating the prices of the raw materials. You may do this for multiple suppliers, but always get the basics out of the way when sourcing.
2. Quality Assurance
Everyone will blame your supply chain or business if things go wrong. They will seldom consider the role of the vendor in any of it. Why is this important? Taking responsibility for the type of goods or materials that make their way into the supply operations is paramount.
Quality assurance is one of the effective ways of guaranteeing the standard or quality of these goods. Irrespective of their cost to the supply chain. Counterfeiting can be intentional or not, but ensuring it has no place in your supply chain is your responsibility.
The process may differ depending on the type of industry, raw material, or supply chain. Many times, it could be as simple as checking the density of a petroleum product using a hydrometer. Other times, not as much.
It should also be conducted for direct and indirect products in the supply chain primarily because they each have their way of causing problems for the supply chain when their quality is not sorted out.
3. Training and Education
Training and educating staff on how to spot or identify counterfeits can prove very effective for supply chains. It allows the supply chain to decentralize the quality assurance process and gives each member of the supply chain team the ability to test the materials quickly and efficiently.
Educating the staff on why counterfeited materials in the supply chain are a terrible idea for the business, and everyone involved goes a long way. This way, suppliers also find it difficult to get past an entire team. Even if they can fool or bribe one or two team members.
Bribery is a common problem. But when the experts are more, it becomes infinitely more difficult and expensive for suppliers to take that option.
𝗖𝗼𝘂𝗻𝘁𝗲𝗿𝗳𝗲𝗶𝘁𝗶𝗻𝗴 𝗶𝘀 𝗮 𝗽𝗿𝗼𝗯𝗹𝗲𝗺 𝗳𝗼𝗿 𝗔𝗳𝗿𝗶𝗰𝗮𝗻 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻𝘀, 𝗯𝘂𝘁 𝗶𝘁 𝗶𝘀 𝗮𝗻 𝗮𝘃𝗼𝗶𝗱𝗮𝗯𝗹𝗲 𝗽𝗿𝗼𝗯𝗹𝗲𝗺. 𝗜𝘁 𝗿𝗲𝗾𝘂𝗶𝗿𝗲𝘀 𝗺𝗼𝗿𝗲 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻𝘀 𝘁𝗼 𝘁𝗮𝗸𝗲 𝗺𝗼𝗿𝗲 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝘄𝗵𝗶𝗹𝗲 𝗮𝘃𝗼𝗶𝗱𝗶𝗻𝗴 𝗰𝗵𝗲𝗮𝗽𝗲𝗿, 𝘀𝗶𝗺𝗽𝗹𝗲𝗿 𝗿𝗼𝘂𝘁𝗲𝘀 𝘁𝗼 𝘀𝗮𝘃𝗲 𝗺𝗼𝗻𝗲𝘆. 𝗔𝗹𝘁𝗵𝗼𝘂𝗴𝗵 𝘀𝗮𝘃𝗶𝗻𝗴𝘀 𝗮𝗿𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁, 𝘁𝗵𝗲 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿’𝘀 𝘀𝗮𝘁𝗶𝘀𝗳𝗮𝗰𝘁𝗶𝗼𝗻 𝘀𝗵𝗼𝘂𝗹𝗱 𝘀𝘁𝗶𝗹𝗹 𝗰𝗼𝗺𝗲 𝗳𝗶𝗿𝘀𝘁.
Obinabo Tochukwu Tabansi is a supply chain mastro and writer with a decade of experience working in different facets of the supply chain. Today he is living his passion for writing on all things supply chain. His blog, Supply Chain Nuggets, is Africa’s fastest-rising supply chain blog, helping professionals, business owners, and curious minds navigate the supply chain complexities on the continent.
