Detecting counterfeit and illicit goods in the supply chain. Marking methods and security features where it matters most In the hands of the consumer

Transcription

1 Detecting counterfeit and illicit goods in the supply chain Marking methods and security features where it matters most In the hands of the consumer

2 Fastest growing industry in the world Fakes and Counterfeits NO STATS! We all know fakes, counterfeits and illicit trade are BIG problems in many industries and growing fast. Most Counterfeits are from pharma, luxury accessories, electronics, arts, etc., however growing rapidly is FMCG and FOOD/ALCOHOL! No silver bullet or fool proof system it s a layered approach around practicality and cost. Africa has highest growth of fakes globally Why? Unsuspecting and trusting (changing) consumer Cheapest option for consumer Higher margin for retailer Poor regulation / corruption / porous borders / poor law enforcement Africa has largest global informal trading segment, so a good supply chain is only as good as the security at last legitimate POS. Most counterfeits enter the supply chain in the last mile Organised crime funded well and little overheads

3 Fastest growing industry in the world Fakes and Counterfeits Less than 5% of goods at ports of entry are inspected. Stolen goods sold to consumers genuine goods but not legal. As more fakes enter market there is a growing distrust from consumers. Touch point for end users is at pack/item level. Items almost indistinguishable. Hard to impossible at times to differentiate a fake from a genuine. Without some secret or hard to replicate features that can be checked by consumers, law enforcement, customs officials and others in the supply chain, fighting the fakes will be very hard. Consumers hold the key to fighting counterfeits through use of data and technology. Brand protection / Authentication HAS to tie into marking, identification and traceability to be effective.

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5 Traceability & Authentication - Where to start? Start at Item / Unit Level Primary Packaging. NOT Batch ID. Comply to international & industry traceability standards GS1. Design solution to go from ULT to Bulk Supply chain integration. Evaluate supply chain and see if and where counterfeits instances are happening. Layer or integrate levels of overt requirements with authentication / security options. Catch before you promote. Change tack if need be, as and when. Involve the supply chain & through to consumer if you can.

6 Marking & Identification OVERT - Direct Item level man & machine readable markings DIRECT on primary packaging (ULT) and event pack items. Direct Marking is MOST cost effective. 700m/min, 3,500 chrs/sec, 2000 items a minute. TIJ & CIJ inkjet, Lasers (YAG, Fiber, CO2, Green, etc.)

7 Marking & Identification OVERT - Label Tax Stamps Holograms Tamper evident labels Filtered Images Moire Effect 3D imaging Hidden Text Etc.

8 Marking & Identification COVERT/FORENSIC Either part of OVERT marking and/or additional markings: DNA Inks/Taggants Fluorescent (UV visible) inks Spectral inks Food Grade RFID/NFC Microdots MicroTracers Hidden Text Braille Secured QR codes Fibers Micro Glitters

9 Example Solution Pelta TM Code Standard Data Matrix Code Pelta Code Overt Message Overt Message Covert Message The data in the 2 nd layer (covert) of a Pelta code was designed for authentication purposes The covert information is encrypted via a 128-bit key and is impossible for counterfeiters to create or read. Its GS1 s SGTIN but on steroids!

10 2D codes Consumer engaging Secure 2D code for authentication Read security code Security stamp ID Trust Certifies that this security code was generated for ABC Related information Associated document ID Trust Informs that this code is NOT a security code.

11 Solution Benefits Utilize existing GS1 Standard 2D barcodes on products & packaging - Is non-intrusive on branding. Use existing coding and verification equipment - Is nonintrusive on the production lines. Item Level ID marked directly on product or document - increasing the security of the item most durable mark high security Lowest cost. Integration to Production and supply chain platforms. Almost impossible for Fraudsters to replicate. Overt for serialization, traceability and Marketing Covert for authentication and alerts

12 Solutions Components 1. Code Creation Software: Pelta codes append to most popular 2D barcoding systems Fast and easy implementation 2. Cloud-Based System: Inclusive of database (db) with a browser-based user interface The architecture is flexible and scalable Globally accessible via any internet browser 3. Pelta 2D Barcode Readers: Applications for production and postproduction Production - Pelta 2D codes are readable by most popular production scanners Post Production - Smart phones running iverifyit mobile applications

13 Solutions Components Post Production Alerts: counterfeiting/diversion Geo-Tracking Alert: Product with an identical Pelta code is scanned in different country it will create an alert X (time and distance is programmable) Time-Based Alert: Same Pelta code is scanned after released from production over Y times in 24 hours (actual no. can be customized) Production Based Notifications: Milestone date missed Incorrect facility entry/exit scan Production release date or time missed

14 Solution Benefits - Consumers Leverage smartphones Response Pages Demographics Consumer engagement Brand owner App Every consumer is part of law enforcement Loyalty and reward schemes AV challenged, Dosage and Contra warnings Regulations POPI Compliant Complies to international & Industry standards

15 Example There are elements in a bottle of liquor that can be marked with laser technology allowing for unique identification. Top Label Bottle

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17 Thank you Kyle Parker