Anti-counterfeiting and Brand Protection (ABP) Workshop @ ARC's 2011 Industry Forum

Anti-counterfeiting and Brand

Protection (ABP) Workshop

John BlanchardResearch Director

ARC Advisory Group

[email protected]

Janice AbelPrincipal Analyst

ARC Advisory Group

[email protected]



Steve BankerService Director, SCM

ARC Advisory Group

[email protected]

Sal SpadaResearch Director

ARC Advisory Group

[email protected]



Clint ReiserService Director, SCM

ARC Advisory Group

[email protected]

http://central.arcweb.com/Employee Pictures Low Res/CReiser.jpg

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


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


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.


Protection (ABP) Best Practices

Janice AbelPrincipal Analyst

ARC Advisory Group

[email protected]


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

http://www.amazon.com/gp/product/images/B000SALE1Q/ref=dp_image_0?ie=UTF8&n=3375251&s=sporting-goods

http://www.businessweek.com/magazine/content/08_41/b4103034196235.htm


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


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


Top 10 Commodities Seized - 2008

Safety Health Liability

Pervasive


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


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.”


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


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


ABP Best Practices

Leader

Competitor

Follower

People Processes Technology Information


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


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


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




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


Track and Trace, Serialization & Authentication

Serialization

Authentication

Track & Trace Solution


• 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


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


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


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


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


Thank You!For more information, contact the Janice Abel at

[email protected] or visit our web pages atwww.arcweb.com


Break






Thank YouFor your participation!

For more information, contact the Janice Abel at [email protected] or visit our web pages at

www.arcweb.com

Anti-counterfeiting and Brand Protection (ABP) Workshop @ ARC's 2011 Industry Forum

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Transcript of Anti-counterfeiting and Brand Protection (ABP) Workshop @ ARC's 2011 Industry Forum