Article Detail

Information Week
A diversified power management company, Eaton was facing a growing problem in the form of counterfeit products. Common counterfeit electrical products such as circuit breakers can lead to costly repairs, property damage and even serious injury or death because they have not been properly manufactured or tested. To tackle this serious issue, Eaton established a global task force and is partnering with the electrical industry and governments worldwide to prevent the flow of counterfeit products at borders and halt production at its source. To support Eaton’s anti-counterfeiting campaign, the IT team at Eaton developed a Circuit Breaker Authentication (CBA) tool to enable customers to identify counterfeit molded case circuit breakers up to 400 amperes in an attempt to thwart potential danger and allow authorities to be informed of fraudulent distribution. By entering the bar code (QPC), part number (Style) and date code found on the circuit breaker, the tool could be used immediately to detect a counterfeit. The tool is accessible via any web or mobile browser. This was complemented by an internal reporting application for querying and reporting purposes of verified Electrical Circuit Breaker devices. The manufactured circuit breaker records are replicated from the plant to a centralized database on a nightly basis. The centralized database stores the genuine circuit breaker records for verification purposes and also the history of the verified breakers (both authentic and suspects) by means of the CBA application. The underlying reason for having a centralized database is to reduce network latency and make the solution scalable to accommodate additional plants in the future. Any stakeholder in the supply distribution chain has the ability to test the authenticity of the breakers using the CBA tool. The CBA tool calls the external IP Locator service to retrieve the client’s (stakeholder) IP address and geographical location and verifies the breaker parameters entered by the users against the genuine records in the centralized database. The breaker in consideration is confirmed as authentic if its parameters match. The sales personnel can retrieve the authentic and counterfeit breakers report with their respective geographical locations by means of the reporting tool that pulls that data from the centralized database. Similarly, customers can access the CBA tool from Eaton’s website. One of the aspects of the data analysis is to identify the counterfeit products and flag them as suspects in the pre-defined known-counterfeits database. The data collected in the process is then linked to commercial orders for breakers that are genuine. The information from the commercial order would also indicate what market the products are for. When genuine products are found in markets that they were not intended for, this is called as “diversion” or “gray market.” There is a high probability that if one product from an order has been diverted, the rest of the order would also have been diverted. For example, in one of the cases, one breaker from an order intended for the Dominican Republic was found in the U.S. The total retail value of the products on the order is USD 750K if all of the similar products were diverted. The reporting tool data compared against its intended location in the commercial orders would help in tracing who these products were sold to, how much of the product was sold, where it was originally shipped, and how it was diverted. It has been estimated that Eaton is losing about USD 40M annually to gray market and counterfeiting (margin losses and net losses). Today, due to this tool, Eaton can reduce or mitigate financial impact of counterfeit products.




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