Counterfeit products can sink a company's bottom line. But even worse, they can pose safety risks, such as when fake bearings or electronics are passed off as genuine. Distributors and manufacturers should work together to make sure that excess and obsolete products have an authorized channel to meet the existing demand, says Orla Lathrop, director of strategic marketing for Components Direct, in The Counterfeit Challenge.

Whether the damage is to your brand or to the public's well-being ­– or both – counterfeiting takes a toll on the wholesale distribution industry.

Distributors and manufacturers should also establish a process to control returns, ensuring those products don’t re-enter the channel.

And distributors can take a lead role in educating the end-user on using only authorized distributors for the products they are buying.

According to Dennis Polinski, global product manager for brand protection solutions at Brady Corp., Milwaukee, WI, more transparency and traceability in the supply chain will lower the risk of counterfeits.

Read more about recognizing and fighting counterfeit products in The Counterfeit Challenge.