ENABLING TRUSTED TRADE TROUGH SECURE TRACK AND TRACE
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1 ENABLING TRUSTED TRADE TROUGH SECURE TRACK AND TRACE Tom Doyle Chief Commercial Officer May 2014
2 AGENDA I. What is the evolution of Track and Trace? II. What are the drivers for Secure Track and Trace? III. How does Secure Track and Trace enable Trusted Trade? IV. What will the future hold for Secure Track and Trace? V. What technology options exist and what are the limitations? VI. How should governments and regulatory agencies respond? VII. SICPA as a Trusted Partner 2014, SICPA Asia Development Pte. Ltd., Singapore Confidential 2
3 Track and Trace Definition Tracking Concept of marking products so that can be monitored from the point of production up to the customer including each step of the process Building a time and location history for every item Tracing Concept of being able to intercept and identify products and verify their route back to their origin Retrieving specifc products time and location history Secure Tracking and Tracing Is based on 4 essential pillars (secure marking of legitimate production, distribution chain tracking functionalities, auditing and authentication tools and business intelligence) SICPA Government Security Solutions May Confidential - n 3
4 LAW / DIRECTIVE GOVERNMENT PROGRAMME INDUS- TRY PRODUCTS AUTHENTICATION / TRACEABILITY HISTORY (EXTRACT) FedEx 1994 GS EPCIS 2007 Tobacco Malaysia 2004 California 2005 Turkey 2007 Brazil Tobacco 2008 Canada 2008 Brazil Beverages 2009 Morocco 2010 Albania 2011 Georgia 2012 Kenya 2013 EU General Food Law EC/178/2002 (art. 18) US FDA e- Pedigree 2006 California e- Pedigree 2008 US Consumer Products Safety Improvement Act 2008 EU Toys Safety Directive 2009/48/EC EU Falsified Medicine Directive 2011/62/EU 2014 US FDA Drug Quality & Security Act 2013 SICPA Government Security Solutions May Confidential - n 4
5 MAIN DRIVERS FOR SECURE TRACK & TRACE Counterfeit products damage consumer health Tax fraud due to under-declaration of production Smuggling avoids controls & taxes, and fuels organised crime Lack of data & evidence hinders law enforcement and prosecutions 2014, SICPA Asia Development Pte. Ltd., Singapore Confidential 5
6 TRUSTED TRADE REQUIRES SECURE TRACK & TRACE 2014, SICPA Asia Development Pte. Ltd., Singapore Confidential 6
7 THE FUTURE FOR SECURE TRACK AND TRACE? Example Operator Producers Farms, Crops, Fertilizers, Commodities Suppliers Preparations, Mixes, Components Manufacturer Distributor Retailer Customer Items, Medicines, Cigarettes, Bottles Containers, Pallets, Packs, Cartons Stock Keeping Unit (SKU) Consumption, Usage 2020 IV. Create a Foundation for Trusted Trade Collaboration 2014 I. Provide a Standard Platform for Tracking and Tracing II. Enhance Government s Compliance & Enforcement Efforts III. Enable Authentication & Traceability SICPA Government Security Solutions May Confidential - n 7
8 A FUREPROOF MODEL FOR SECURE TRACK & TRACE Material-based security remains core to product authentication that is fundamental to any credible Track & Trace solution Business Intelligence & Reporting Distribution Chain Monitoring Independent Production Control Unique Serial Coding Material Based Security Compliance Management EPCIS Compliant Repository Global Focal Point SICPA Government Security Solutions May Confidential - n 8
9 TECHNOLOGY OPTIONS AND THE LIMITATIONS INDUSTRY INDEPENDENT SOLUTION PROVIDERS ADVANTAGES Acceptance by impacted industry Low setup cost Tailor made for industry process existing processes No conflict of interest - Trustworthy Proven credentials that work Proprietary components offer additional security DISADVANTAGES Not Independent Insider knowledge on the system Limited security as design is limited to industry May benefit directly from misdeclaration Proven actor of illicit trade Resistance from certain industries Exclusive security features Additional costs STANDARD ORGANISATIONS No conflict of interest - Non-profit organisations Promotes interoperability Traditionally promotes guidelines and methods only Experts for part of solution only Have limited implementation capacity SYSTEM INTEGRATORS Implementation capacity Solution adaptability Not core business as specialisation required is out of normal scope Limited product industrialisation capacity SICPA Government Security Solutions May Confidential - n 9
10 Collaboration Return on Collaboration Investment ROI HOW SHOULD GOVERNMENTS AND REGULATORY AGENCIES RESPOND Engaging Partnership 4. PROCUREMENT and IMPLEMENTATION Enhanced Citizen Protection 3. BUSINESS CASE and GOVERNANCE MODEL 2. DIAGNOSTIC OF PROBLEM STATEMENT and CAPABILITIES REQUIRED TO ADRESS IT Improved Fiscal Sustainability 1. STRATEGY, VISION and LEADERSHIP Vision & Trusted Collaboration SICPA Government Security Solutions May Confidential - n 10
11 SICPA AS A TRUSTED PARTNER Founded in countries 77 billion unique marks annually employees SICPA Government Security Solutions May Confidential - n 11
12 Enabling Trust
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