anti-counterfeiting and brand protection (abp) workshop @ arc's 2011 industry forum
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Anti-counterfeiting and Brand Protection (ABP) Workshop @ ARC's 2011 Industry Forum by Janice Abel and John Blanchard. Market for ABP technologies is increasing Important to protect brands and image Brand protection teams and organizations are important Secure the supply chain Range of ABP technologies to consider –depends on many factors Only a few companies have e-pedigree in placeTRANSCRIPT
Anti-counterfeiting and Brand
Protection (ABP) Workshop
John BlanchardResearch Director
ARC Advisory Group
Janice AbelPrincipal Analyst
ARC Advisory Group
Anti-counterfeiting and Brand
Protection (ABP) Workshop
Steve BankerService Director, SCM
ARC Advisory Group
Sal SpadaResearch Director
ARC Advisory Group
Anti-counterfeiting and Brand
Protection (ABP) Workshop
Clint ReiserService Director, SCM
ARC Advisory Group
4© ARC Advisory Group
Welcome and Introductions
Anti-Counterfeiting and Brand Protection Best Practices
National IPR Coordination Center
Evolving Anti-Counterfeiting Approaches
Developing Competencies and Organizing to Prevent Counterfeits: Strategies for Brand Protection
5© ARC Advisory Group
Break
Prioritize and Summarizing Topics
Organize Workshop Topics
Designee - Summarizes Results
Questions / Comments at the end of each short presentation are ok – for topics, keep it short, time
6© ARC Advisory Group
Request from the presenters
Due to the sensitive nature of Anti-Counterfeiting and Brand Protection, our presenters have requested that any public communication by the press or other session participants from this session that uses the presenters name, company, product or organization be submitted to the presenters for approvals or modifications.
Thank you for honoring this request.
Anti-counterfeiting and Brand
Protection (ABP) Best Practices
Janice AbelPrincipal Analyst
ARC Advisory Group
8© ARC Advisory Group
Nearly every product is counterfeited
Pharmaceuticals – anti-cancer drug, AIDS, Malaria, cough syrup
Medical Devices – surgical mesh
Food – infant formula, olive oil, crackers
Beverages – alcohol, soda
Auto parts – brake pads
Electronics & components – IC, semiconductors, computer boards
Consumer products –sunglasses, solar panels, cough syrups, ab rocker, NFL gear
Aerospace – parts (GM Europe)
Software – MS Office
Technology – Kindles, iPods
Chemicals – fertilizer
Oil & Gas - blends
Ab RocketJanuary 2011
$40K NFLJanuary 2011
Seizure of 244,648 Uggs in one raid in China in Dec. 2010
9© ARC Advisory Group
Product Counterfeiting is Big Business
Organized crime
Internet grows counterfeit market (all products)
As much as 10% of all goods/services sold worldwide are counterfeit
7 - 10% of global pharmaceuticals
1-2% of the prescriptions“Counterfeiters have become more sophisticated as they’ve come to realize that counterfeiting is a good business to get into: it has very low risk of getting caught, very low risk of getting punished severely if you do not get caught, and very high reward in terms of profit with low overhead.”
Darren Pogoda, International Anti-Counterfeiting Coalition
Secure the supply chain!
Increase in Small
Distributors
Use
caution about
Internet Products
No prescription
= do not buy
10© ARC Advisory Group
Economic Impact of Counterfeiting
Source: OECD (2008); US Government; US Chamber of Commerce
0
50
100
150
200
250
300
350
$ B
illio
ns
Year
$600 – 650 B global market
11© ARC Advisory Group
Top 10 Commodities Seized - 2008
Safety Health Liability
Pervasive
12© ARC Advisory Group
US Pharmaceutical Cargo Thefts 2009
Top 10 Pharma Thefts by Value in 2009
Eli Lilly Warehouse – $76 M
Eli Lilly Truck - $37 M
Teva Truck - $11.8 M
Novo Nordisk Truck - $11 M
Astellas Truck - $10 M
Unknown company - $8.8 M
GSK Warehouse - $5M
Exel Distribution Center - $3 M
Dev Pharma. Truck - $2M
Dev Pharma. Truck - $2M
“Very easy crime to commit and get away with.”
Keith Lewis, Task Force Agent
Georgia Bureau of Investigation
13© ARC Advisory Group
Importance of Brand Protection
“49% of respondents would be less likely to purchase a food product again if it was recalled due to contamination.”
Source: Yuri Kageyama, AP Business Writer
“Interbrand report released February 1, 2011 said Toyota Motor Corp brand dropped 16 percent to $25.7 B compared with its last report released a year ago.”
14© ARC Advisory Group
Counterfeit Pharmaceutical Incidents
Thefts include burglary, robbery, or an embezzlement of goods. The criminals may be insiders such as employees, or outsiders such as professional thieves. The theft may occur anywhere in the distribution chain such as at the site of manufacture, freight forwarder, distribution centers, warehouses,
pharmacies, or hospitals.
Source: Pharmaceutical Security institute
15© ARC Advisory Group
2010 2012 2014
Worldwi…
Source: ARC Anti-CounterfeitingSource: ARC Anti-CounterfeitingSource: ARC Anti-CounterfeitingSource: ARC Anti-Counterfeiting
ARC ABP Study, Best Practice, Strategy Report, Insights, Consulting
• Strategy, trends, best practices
• Information, analysis, and consulting on methodologies and technologies
16© ARC Advisory Group
ABP Best Practices
Leader
Competitor
Follower
People Processes Technology Information
17© ARC Advisory Group
ABP Best Practices
Leader
Competitor
Follower
People
Dedicated ABP teams
Small dedicated
ABP groups
No dedicated
ABP Teams
Processes
Proactive ABP
program
Proactive ABP
program
Random ABP
program by incident
Technology
Multi-layered
approach
Some multi-layers
Very little use of
multi-layers
Information
Collaboration across
supply chain
Some collaboration
Less likely to collaborate
18© ARC Advisory Group
All industries, all regions
Human readable (overt)
Machine readable (covert & forensic)
Printers & applicators
Readers & authenticators
Track and trace software• Serialization & e-pedigree
• Anti-fraud online software
• Business integration software
Anti-Counterfeiting & Brand ProtectionWorldwide Market Outlook
Track & trace software includes software for
supply chain
Key ABP Technologies Included
19© ARC Advisory Group
http://survey.constantcontact.com/survey/a07e31lwtw2gemvrn56/start
Overt Covert
Micro Text
Holograms
Taggants
RFID
Shrink Brands & Seals
Serialized Labels
Visible inks / markings
Bar Codes
Human Readable (overt)
Machine Readable (covert)
Printers & Applicators
Readers & Authenticators
Track and Trace
Software; Anti-fraud Software
Anti-Counterfeiting & Brand Protection
Survey (ABP) & Study
ABP Technologies
Best Practices Survey and Study
20© ARC Advisory Group
Rate the effectiveness of human readable technologies
Holograms, visible markers and labels are all nearly equally effective
Human Readable Technologies Effectiveness
Rank
0% 5% 10% 15% 20%
Other
Threads
Serialized Labels
Visible Markings (Color / Inks / Dyes)
Advanced Optical Imaging Holograms
Standard Holograms
21© ARC Advisory Group
Track and Trace, Serialization & Authentication
Serialization
Authentication
Track & Trace Solution
22© ARC Advisory Group
• Tracking involves knowing the physical location of a product throughout the supply chain
• Tracing is the ability to know the historical business event information about the product such as historical locations, time spent at each location, record of ownership, transaction history, packaging configurations, storage conditions, etc.
Track and Trace
• unique serial numbers for every unit or item producedSerialization
• electronic record containing genealogy information regarding each transaction resulting in a change of ownership or location of a drug through the supply chain
E-Pedigree
Solutions can be used alone or as part of a layered approach
Software Track and Trace Solutions
23© ARC Advisory Group
How ABP is being addressed
Leaders – more dedicated teams Followers – 40% don’t focus on counterfeiting
Teams or Persons Focused on ABP
Person or Teams Focused on ABP
0 20 40 60
Other
Packaging team or person
Security team or person
Do not focus on anti-counterfeiting
Supply chain team or person
Legal team or person
Dedicated brand protection or anti-counterfeiting team or person
Source: ARC Advisory Group, ABP Best Practice ©2010
24© ARC Advisory Group
Multi-Layered approach
Respondents Using Multiple Layers for
Protection
Overt Layer X
Overt Layer 2
Overt Layer 1
Covert Layer X
Covert Layer 2
Covert Layer
1
All leading companies are using multi-layered approach
25© ARC Advisory Group
Best Practice Approach
Expiration Date
Other Identificationinformation
Country ofdistribution
Targeted wholesaler or
retailerBatch / lotnumber
Weight /Strength
Genealogy Raw Mtls Origin
Manufacturinglocation
Country ofdistribution
DescriptionOf Product
26© ARC Advisory Group
Anti-Counterfeiting & Brand ProtectionTrends
Market for ABP technologies is increasing
Important to protect brands and image
Brand protection teams and organizations are important
Secure the supply chain
Range of ABP technologies to consider – depends on many factors
Only a few companies have e-pedigree in place
Implement pilots while standards and regulations develop
Continuously update & deploy the latest technologies Overt
Layer XOvert
Layer 2Overt
Layer 1Covert
Layer X
Covert
Layer 2
Covert Layer 1
27© ARC Advisory Group
Thank You!For more information, contact the Janice Abel at
[email protected] or visit our web pages atwww.arcweb.com
28© ARC Advisory Group
Welcome and Introductions
Anti-Counterfeiting and Brand Protection Best Practices
National IPR Coordination Center
Evolving Anti-Counterfeiting Approaches
Developing Competencies and Organizing to Prevent Counterfeits: Strategies for Brand Protection
29© ARC Advisory Group
Welcome and Introductions
Anti-Counterfeiting and Brand Protection Best Practices
National IPR Coordination Center
Evolving Anti-Counterfeiting Approaches
Developing Competencies and Organizing to Prevent Counterfeits: Strategies for Brand Protection
30© ARC Advisory Group
Welcome and Introductions
Anti-Counterfeiting and Brand Protection Best Practices
National IPR Coordination Center
Evolving Anti-Counterfeiting Approaches
Developing Competencies and Organizing to Prevent Counterfeits: Strategies for Brand Protection
31© ARC Advisory Group
Break
Prioritize and Summarizing Topics
Organize Workshop Topics
Designee - Summarizes Results
Questions / Comments at the end of each short presentation are ok – for topics, keep it short, time
32© ARC Advisory Group
Break
Prioritize and Summarizing Topics
Organize Workshop Topics
Designee - Summarizes Results
Questions / Comments at the end of each short presentation are ok – for topics, keep it short, time
33© ARC Advisory Group
Break
Prioritize and Summarizing Topics
Organize Workshop Topics
Designee - Summarizes Results
Questions / Comments at the end of each short presentation are ok – for topics, keep it short, time
34© ARC Advisory Group
Break
Prioritize and Summarizing Topics
Organize Workshop Topics
Designee - Summarizes Results
Questions / Comments at the end of each short presentation are ok – for topics, keep it short, time
35© ARC Advisory Group
Thank YouFor your participation!
For more information, contact the Janice Abel at [email protected] or visit our web pages at
www.arcweb.com