PECM Issue 41 2019 | Page 42

EDITOR’S CHOICE OEM ENGINEERING COMPANY SMARTWATER A MODERN-DAY HORROR STORY A gap has been identified in track and trace technology In January 2017, a Director of an international size OEM engineering company of specialist fasteners, became embroiled in a dispute with a major customer, who accused them of selling shoddy products. Apparently, one of their high specification bolts had been installed into a large turbine, which operated under extreme pressures. It was fitted by the customer’s highly skilled engineering team about six months earlier, who claimed that they had bought the bolt from an authorised Distributor of the OEM’s. Upon inspection at the Customer’s site, the OEM’s own engineers found that the bolt displayed their Company’s logo and, to all intent and purposes, it looked like a genuine bolt. However, as it had been fitted months previously, the Customer had thrown all the packaging away that contained the ‘track and trace’ production data. 42 PECM Issue 41 The Customer warned the Director to expect a claim for damages to the turbine and consequential loss, amounting to many tens of thousands of pounds. As a result, the Director alerted their Insurer of a potential claim and asked the Company’s Metallurgists to conduct tests on the bolt to confirm that it was a genuine bolt and, if it was, to try and identify what caused the problem, as there may be a potential recall of flawed products needed. The Insurer advised them that, whilst they were committed to pay out on the claim for damages up to the extent of the product liability cover, they would only do so if it was a genuine product. The Director realised that he was between ‘a rock and a hard place’. His Metallurgists could either determine that the bolt was a counterfeit, negating the Company’s insurance cover leaving it liable to pay damages or find that it was a genuine but flawed bolt, resulting in the horrors of a product recall. The Metallurgists reported that they believed that it was a counterfeit, based upon the poor quality of metal used. He advised the Customer of the result and suggested that they should take their claim up with the Supplier of the counterfeit bolt. The Customer responded that his engineering team had already investigated, with the Supplier claiming that they had bought it from an authorised Distributor of the OEM. As far as they were concerned, the OEM was still responsible and they would not only take the matter to Court but cease all future business with the OEM.