Anti-counterfeiting and Brand Protection (ABP) Workshop @ ARC's 2011 Industry Forum
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The document covers the Anti-Counterfeiting and Brand Protection (ABP) Workshop, emphasizing the pervasive issue of product counterfeiting across various industries and its economic impact. It discusses best practices, evolving strategies, and the importance of securing supply chains through advanced technologies like serialization and track-and-trace solutions. The workshop features insights from experts on how organizations can develop competencies to prevent counterfeiting and enhance brand protection.
Anti-counterfeiting and Brand Protection (ABP) Workshop @ ARC's 2011 Industry Forum
- 1. Anti-counterfeiting and Brand Protection (ABP) Workshop John Blanchard Research Director ARC Advisory Group jblanchard@arcweb.com Janice Abel Principal Analyst ARC Advisory Group jabel@arcweb.com
- 2. Anti-counterfeiting and Brand Protection (ABP) Workshop Steve Banker Service Director, SCM ARC Advisory Group sbanker@arcweb.com Sal Spada Research Director ARC Advisory Group sspada@arcweb.com
- 3. Anti-counterfeiting and Brand Protection (ABP) Workshop Clint Reiser Service Director, SCM ARC Advisory Group cresiser@arcweb.com
- 4. 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. 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. 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.
- 7. Anti-counterfeiting and Brand Protection (ABP) Best Practices Janice Abel Principal Analyst ARC Advisory Group jabel@arcweb.com
- 8. 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 Rocket January 2011 $40K NFL January 2011 Seizure of 244,648 Uggs in one raid in China in Dec. 2010
- 9. 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. 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 $Billions Year $600 – 650 B global market
- 11. 11 © ARC Advisory Group Top 10 Commodities Seized - 2008 Safety Health Liability Pervasive
- 12. 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. 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. 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. 15 © ARC Advisory Group 2010 2012 2014 Worldwi… Source: ARC Anti-CountSource: ARC Anti-CountSource: ARC Anti-CountSource: ARC Anti-Count ARC ABP Study, Best Practice, Strategy Report, Insights, Consulting • Strategy, trends, best practices • Information, analysis, and consulting on methodologies and technologies
- 16. 16 © ARC Advisory Group ABP Best Practices Leader Competitor Follower People Processes Technology Information
- 17. 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. 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 Protection Worldwide Market Outlook Track & trace software includes software for supply chain Key ABP Technologies Included
- 19. 19 © ARC Advisory Group http://survey.constantcontact.com/survey/a07e31lwtw2gem vrn56/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. 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. 21 © ARC Advisory Group Track and Trace, Serialization & Authentication Serialization Authentication Track & Trace Solution
- 22. 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. 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. 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. 25 © ARC Advisory Group Best Practice Approach Expiration Date Other Identification information Country of distribution Targeted wholesaler or retailerBatch / lot number Weight /Strength Genealogy Raw Mtls Origin Manufacturing location Country of distribution Description Of Product
- 26. 26 © ARC Advisory Group Anti-Counterfeiting & Brand Protection Trends 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 1Cove rt Layer X Cove rt Layer 2 Co ve rt La ye r 1
- 27. 27 © ARC Advisory Group Thank You! For more information, contact the Janice Abel at jabel@arcweb.com or visit our web pages at www.arcweb.com
- 28. 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. 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. 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. 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. 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. 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. 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. 35 © ARC Advisory Group Thank You For your participation! For more information, contact the Janice Abel at jabel@arcweb.com or visit our web pages at www.arcweb.com