Last week, a supply chain subsidiary of Toyota Motor Corporation filed a claim in the U.S. District Court for the Central District of California against Sino Scrap, Inc., also known as Autocats, for concocting a scheme to sell fake catalytic converters. It is alleged the fake converters were mixed with real ones then sold to Toyota and other buyers. A “cookbook” was prepared that apparently described how to create fake parts to fool inspectors.
This situation proves why manufacturers and distributors must formulate internal policies to improve inventory management, procurement procedures, and inspection protocols to significantly mitigate the risks associated with this problem. Moreover, when parts cannot be purchased from the original manufacturers or their authorized dealers, distributors and manufacturers should look to trusted suppliers with an accredited certification.