Impact of Counterfeit Automotive Spare Parts and Components on the Supply Chain System in Arusha City and Moshi Municipality

Abstract

'l'he objective of this study was to assess the impact of counterfeit spare parts and components to the supply chain system in Arusha City and Moshi Municipality. The specific objectives were focused on assessing the impact of counterfeit spare parts on supply chain system through the intention to trade or purchase counterfeits, effect on the customer and suppliers’ relationship as part of supply chain, affect on the quality control in automotive service industry and the major risks of counterfeit spare parts and components for in motor vehicles. The methodology adopted was a case study with the sample size of 60 respondents from whom data were collected using questionnaire, interviews and group discussions. The data was analyzed by using Statistical Package for Social Science (SPSS) version 17. The findings from the study revealed that counterfeit spare parts have great impact on the supply chain system in Tanzania because they affect the consumers and suppliers’intentions in the purchase of genuine spares. They affect the supplier and customer relationship. They also affect the quality of the supply chain and this result in risks such as accidents, damages and extra costs. Conclusion drawn from the study is that counterfeit spare parts and components have great impact to the supply chain system as it affects the supplier and customer relationship, quality control efforts and operational risks. The study recommends that there is a need of improving consumer awareness on the negative effect of using counterfeit products especially motor vehicle spare parts. Equally relevant authorities and genuine products manufactures should increase the efforts in combating the ever-growing market of counterfeit products in Tanzania and the rest of the world by instituting stringent legal measures toward the counterfeiters that include penalties.