Counterfeit consumables threaten supply chain

In the tough economic climate, the temptation to buy cheap print consumables is strong with a large and ready source of counterfeit products ready to meet demand, according to OKI Printing Solutions.

As a result, latest estimates show that around eight per cent of imaging consumables across EMEA are accounted for by the illegal - though difficult to detect - counterfeit market.

And this loss, currently running at EUR1.6bn (GBP 1.4bn) annually within the UK alone, is expected to increase in light of the current downturn.

That is according to Graham Lowes, marketing director of OKI Printing Solutions, who said that in the imaging supplies industry, counterfeiting is most commonly linked to the supply of ribbons and toner cartridges.

Counterfeiters threaten the whole supply chain, with a strong impact on the revenues and the reputation of manufacturers and distributors.

Lowes said: 'The ultimate victim of course is the end user, who may be fooled into getting what they think is a bargain.

'Counterfeit consumables can have a severe impact on printing performance and quality of output.

'In addition, counterfeit imaging supplies - most typically ribbons and toner cartridges - are inherently less reliable than original products and may well damage the printers into which they are placed.

'If a printer is bought, the user is entitled to think it's going to perform according to the manufacturer's specification.

'It is believed that the machine will last for a certain number of years and print to a high standard,' he added.

However, he said that as printing is a complex process, there are many factors that can cause a fake cartridge to under perform or cause damage.

User will contact the dealer or manufacturer to complain, only to be told that the cartridge is counterfeit, possibly rendering the printer warranty invalid.

It is simply not worth the risk.

Lowes commented that while it is clear that counterfeiting consumables has a direct financial impact on the distribution chain and those employed in it, manufacturers also have a broader social responsibility to help to minimise the damage that results from counterfeiting activity.

He said: 'Currently, this damage can often be severe.

'On the one hand, the manufacture of such counterfeit products as printer ribbons and toner cartridges typically takes place in sweat shops providing extremely poor working conditions, with the health and safety of employees put at serious risk.

'At the same time, the use of inherently dangerous raw materials, uncontrolled production facilities and lack of recycling at any stage of the process can have a potentially devastating impact on the local environment.

'As a result, manufacturers with finite resources have increasingly concentrated the major part of their investigation effort in areas where they are likely to achieve the greatest return, by targeting as far up the distribution chain as possible and seeking to stop this illegal and dangerous activity at source.

'The bottom line is that, however superficially attractive the offer of cheaper print consumables may appear, the consequences can be far reaching,' he added.

Source: http://www.printingtalk.com/news/oki/oki119.html