Combating Packaging Counterfeit, tampering and Optimising Supply Chain Efficiency through Track & Trace Systems

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1 Combating Packaging Counterfeit, tampering and Optimising Supply Chain Efficiency through Track & Trace Systems

2 GS1 India A standards organisation set up by the Ministry of Commerce and Industry, Govt. of India with founder members comprising: indicates India as country of origin Ministry of Commerce CII FICCI ASSOCHAM FIEO Spices Board BIS IMC IIP APEDA Joint Government Industry initiative Affiliated to GS1 Global Office, Belgium alongwith 110 GS1 organisations worldwide.

3 VINSAK For last two decades, consistently witnessed a remarkable growth. Headquartered in Gurgaon, India. More than 50 products and solutions. Turnover of approx. USD 40 million worldwide. Alliances with more than 15 partners across the world. A team of talented professionals in different streams Extensive reach across Middle East, African & Asian markets.

4 ANY GRAPHICS Any Graphics Pvt. Ltd. is located at Sec-65, Noida (India). Serving from last 36 Years with drastic growth in business. 1 Lac Square Feet production area with new state of art production facility. Dust controlled and Fully Air Conditioned working area. Working with more than 7000 products for more than 350 clients. Approx. USD 70 Millions turn over including exports. Grabbed 3 Global Awards & 27 National Awards for excellence. Proudly introduced and launched Packaging & Printing Labels with Fresnel Lens effect and Natural feel in India.

5 Supply Chain Challenges Lack of transparency making Supply Chain vulnerable to infiltration by counterfeiters Supply Chain processes based on legacy systems with low visibility inhibiting unique object identification, traceability and effective recall 5

6 Supply Chain Management - key building blocks

7 7 Global stds: building blocks for safe & secure Supply Chains

8 The Counterfeit Problem The World Health Organization views the counterfeit of medical products as a tremendous risk to public Health G20 member countries have an estimated 3,000 deaths, lose USD $77.5 billion in tax and an additional USD $25 billion increased cost of crime annually due to counterfeit consumer goods Legitimate businesses must compete with counterfeiters while brand owners and Intellectual Property Rights (IPR) holders face significant business and financial risks 8

9 The Solution Adoption of anti-counterfeit technologies to enable product authentication at packaging level Implementation of Track & Trace system to enhance visibility across supply chains Global engagement among regulators, standards body, industry and other supply chain stake-holders to ensure safe trade across borders 9

10 Anti-counterfeit Strategy A multi-layered approach Secure: - Product and packaging - Movement of products through the supply chain - Business transactions Maintaining universal and uniform electronic pedigree across all supply chain stakeholders Ensure appropriate regulations and enforcement. Increase penalties Heighten vigilance and awareness Increase int l collaboration The introduction of a unique identification for products will enable authentication and traceability systems which will make more difficult for counterfeiters to intrude into legitimate supply chain

11 Key Anti-Counterfeiting Technologies Application of Technologies at different packaging levels can bring an important contribution to build an efficient anticounterfeiting strategy Traceability technologies Unique pack Identification (serial number) + Online checking system (end-to-end / e-pedigree) Authentication technologies Overt & Covert features Increased Protection (Patient/Product) Tamper evident outer pack closure system (seals, glued flaps, perforated carton) Strategy & Technologies JM Bobée 1 September 2008

12 Traceability Trace back & Track forward Traceability across the supply chain 12

13 Traceability Implementation 13 Implementing a traceability system within a supply chain requires all parties involved to systematically link the physical flow of materials and products with the flow of information about them.

14 Traceability Process Participants Parties and Roles Who are the parties in the traceability process? Carrier/Third Party Logistics Provider (3PL) Responsible for the delivery or shipping of the traceable item. Processor/Manufacturer/Primary Producer Receives inputs and transforms those inputs. (Ex: farmer, an abattoir or a packer that consolidates product form a number of growers, and a food manufacturer that processes food ingredients into a finished product) Retailer/Point of Sale or Service Operator Final relationship with the consumer (Ex: retailer, healthcare provider, institution, hotel, restaurant) Warehouse/Distribution Centre Responsible for the handling (may transform) and storage of the traceable item. 14 Authorities The party legally mandated to protect the public interest.

15 How Does Traceability Works? Global Traceability Standards provides guidance on how to implement effective traceability solutions. Unique identification Global product identification number Lot/batch number or serial number (unique number at the unit level) Data capture Bar coding or radio frequency identification (RFID) Links management Managing identification from the point-of-manufacture to the pointof-sale/point-of-care Data communication Associate the physical flow of products with the information flow Different information sharing models

16 GS1 Traceability Standards 16 Defines a process independently from the choice of enabling technologies Defines minimum traceability system requirements for companies of all sizes across industry sectors Details the corresponding GS1 standards used within information management tools Meets the core legislative and business need to costefficiently trace back (one step down) and track forward (one step up) at any point along the entire length of the supply chain Describes the creation of accurate records of transactions Provides for fast data communication about the traceable item between trading partners

17 Traceability Components Data Generation Unique Codes Unique Serial Numbers Logical Data Product detail 17

18 Technological Requirements Data Apply Center Pre Printed labels High resolution VDP facility Printing on pre printed labels Or Direct printing on product Online Inspection Center 18

19 Information exchange within a Traceability system Retailer Distributor End User Sub Distributor Central Server Data Generation Center Distribution Of Product Data Printing & Apply Capturing Of Applied Data 19

20 Traceability : Steps for Information Exchange Data Capturing Applying Labels on Products Log report form Inspection System Data collection before dispatch Data matching from Data base 20

21 Traceability : Steps for Information Exchange Retailer End User. Data capture at time of selling to end user. End user must be able check authentication of product. Customer must receive message from data center via or SMS as customer scan given unique code on product. 21

22 GS1 B2C : Connecting Consumers to Trusted Source of Data 22

23 Global Engagements Anti-Counterfeit stds (ISO/TC 246) Product Recall stds (ISO/TC 240) Product Safety stds (ISO/TC 243) WCO IPM tools GS1 visibility framework and identification standards Product safety portal for consumers, Industry and regulators Supply Chain visibility For traceability and recall G2G recall portal and counterfeit detection

24 GS1 OECD Partnership

25 Fighting Counterfeits -GS1-WCO Collaboration

26 Compatibility with ISO standards

27

28

29

30 In Conclusion An interoperable framework for anti-counterfeit & authentication services needs: Globally unique identification of products, companies, transactions etc. Traceability across Supply Chain involving multiple trading partners. Global stds can assist in fight against counterfeit and illicit trade by: Describing the stds, processes and technologies that can uniquely identify objects and activities to enable interoperable traceability systems involving multiple organizations and supply chains. Documenting how std-based approaches facilitate more productive and mutually beneficial relationships among trading partners.

31 Thank You

32 TRACK & TRACE

33 Track and trace systems is a comprehensive solution for the pharmaceutical industries in protection against counterfeit, ensures high quality product and reliability in transportation of the pharmaceutical products from manufactures, suppliers and consumers. Strong brand identity is integral to great businesses, but they are threatened daily by the counterfeiting industry. Counterfeiting operations can be incredibly sophisticated and lucrative. They are having more of an impact than ever, as both globalization and E-commerce continue to grow. 2

34 The Three C Challenges of Pharmaceutical Co. s Competition from generic lower cost products from emerging markets is squeezing prices at a time when other factors are reducing prices. Compliance is a significant element of a pharmaceutical industry. To ensure the safety of drugs, different country s regulators have embarked on various legislations. Counterfeit drugs are major problem estimated to cost between 7-10% of global pharmaceutical market revenue. The challenge of counterfeit drugs must be addressed to ensure future revenue streams, but the solution is likely to need government support. June 14 3

35 Benefits of Track & Trace Solutions Competition a T&T solution can help in detecting areas for further sales generating or product development efforts by identifying such parameters as the best selling product lines. Compliance a T&T solution in conjunction with current requirements for serialisation can ensure regulatory compliance. Counterfeit conjunction with serialisation and an authentication function can help ensure that the drugs reach the destination in time, in its original shape and content. the solution can help governments ensure tax revenue and also ensure that consumers avoid getting hurt from counterfeit drugs. June 14 4

36 Revenue Protection Revenue protection and prevention counterfeiting on pharmaceutical tobacco, and alcohol products. 5

37 With the global value of counterfeit goods estimated to be worth around $1.8 trillion and the products representing more than 2% of the world s total current economic output. It should come as no surprise that one of the most challenging issues facing brand owners and retailers is the security, integrity and protection of their brands. It is estimated that the prevalence of counterfeit medicines ranges from less than 1% of sales in developed countries, to between 10-30% in developing countries, depending on the geographical area. (As per report by World Health Professions Alliance). Approximate loss to Indian government are several tens of millions USD annually of lost tax revenues 6

38 End User Distributor Retailer Sub Distributor Central Server Data Generation Center Distribution Of Product Data Printing & Apply Capturing Of Applied Data 7

39 Data Generation Unique Codes Unique Serial Numbers Logical Data Product detail 8

40 Data Apply Center Pre Printed labels High resolution VDP facility Printing on pre printed labels Or Direct printing on product Online Inspection Center 9

41 Data Capturing Applying Labels on Products Log report form Inspection System Data collection before dispatch Data matching from Data base 10

42 Distribution Of Product Product distribution detail Place and Mode of transport Distributor Sub distributor 11

43 Retailer End User. Data capture at time of selling to end user. End user must be able check authentication of product. Customer must receive message from data center via or SMS as customer scan given unique code on product. 12

44 INTAGLIO The term Intaglio, is derived from the Italian Intagliare means to carve, to cut out, to incise and covers a host of hand printing processes usually using metal plates (most often copper, zinc or steel). Areas below the surface hold the ink. Image to be printed is cut or scratched into a metal surface by steel or diamond-tip tools, or etched into the surface by acid.

45 Intaglio: To Make a Print First, printmaker daubs the plate with viscous printer s ink Then, wipe the surface clean, leaving ink only in the etched or grooved portions Next, damp paper is placed on the inked plate Which then, passes beneath the press roller A print is made when the dampened paper picks up the ink in the grooves The pressure of the roller creates a characteristic plate mark around the edges of the print

46 Intaglio Traditionally, intaglio printing was done from polished copper plates Now used - o Zinc o Steel o Aluminum o Plastic Two Principal Intaglio processes - o Engraving o Etching

47 Engraving An intaglio printmaking process in which grooves are cut into a metal or wood surface with a sharp cutting tool called a burin or graver. Also the resulting print.

48 Engraving Process Lines are made by pushing the burin through the metal to carve a groove. Thousand of fine lines define the shapes, masses, spaces values. Textures of the depicted objects.

49 The complex richness of engraved lines in Albrecht Durer s engraving THE KNIGHT, DEATH AND THE DEVIL.

50 Types of Engraving Claw Engraving Wood Engraving Copper Engraving

51 Etching A printmaking process To begin this process, you must first prepare a metal plate with a protective coating of acid-resistant material that covers the copper or zinc called a ground. Then, the printmaker uses a pointed tool to draw through the ground, exposing the metal, which will create more relaxed or irregular lines than those of engravings. The plate is then immersed into acid.

52 Rembrandt Harmensz van Rijn Christ Preaching. C Etching.

53 The acid then bites into the plate where the drawing has exposed the metal, making a groove that varies in depth according to the strength of the acid and the length of time the plate is in the acid bath.

54 Aquatint is an etching process used to obtain shaded areas in black-and-white or color prints. When the plate is put down into the acid, the areas that are exposed between the paint particles are eaten away to produce a rough surface that can hold ink. This in turn produces values that are light or dark.

55 In Francisco Goya s print entitled The Disaster of War, he achieves the lightly colored sky and some of the shading on the ground by using aquatint along with etched lines.

56 THANK YOU

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