TOBACCO DISTRIBUTION       SOLUTION Using RFID Technology    ~executive summary~                          13th Jan. 2012
Current Malaysia’sTobacco Situation?
Annual Tobacco Consumption Amount      23.3billion(Yr 2009)
Tobacco Consumption Shift (Billion) 25                            23.3 20                 20.8             18.7 15 10     ...
Public Health ConcernsEncourage Smokers to StopPrevent Youngsters fromSmoking
Tobacco Price Shift       (RM)        12        10          8          6          4                       2005            ...
Tobacco Price Increase,same time,Tobacco Consumptionhas Increased!?
One of the MAIN reasons:ILLICIT TRADE &SMUGGLING
The MAIN Illicit smuggling Countries    Thailand    China    Indonesia    Cambodia
Illegal Tobacco Ratio Shift 40% 30% 20% 10%       2004              2005                                                 2...
Annual Total Illicit Tobacco            About   9 billion(Yr 2009)
Smuggled & Illicit TobaccoMarket Price under
Estimated Profit fromIllicit Tobacco TradeRM 1Billion
Gov. Taxes Lost EstimatedRM2Bln.
From August, 2004
Special device:Authenticity Check
Control illicit trade
…however, with little           effect !?
Several factors
Production /           Distribution                   TobaccoManufacturing               Tobacco pricecontrol             ...
Can be improved!
15%  1~2%
1   Licensing all participants    in the tobacco business
2   Tracking and tracing    systems from the points    of manufacture to all    points of sale
3   Traceable methods of    payment
4   Strict scrutiny    procedures in the    selection of contractors    during the supply    process
5   Significant financial    penalties for    infringements
Key factor  “Supply Chain Control”
SUGGESTION
RFID Technology Application
Success in Supply Chain
“The U.K. government is sick of losing $7billion in tax dollars every year due to theillegal cigarette trade. In order to ...
System
Production             Distribution,                     Sales                      Import/Export    Record               ...
Registration
Stick tag (Manufacturer)Write production info. (Data lock)
Track & Trace
Update tobacco tag informationLocation managementRecord any abnormal status
Individual history tracking Unauthorized move  from factory. Illegal distribution
Point of Sales
Tobacco tag invalidation(Kill)D/B status update
Security
Unique ID number + TIDEncoded data lock function
Inspection
Visual inspectionContactless scanning
Benefit?
Prevent terrorist & crime funding
Help preventincrease insmokers
Increase legaltobacco salesrevenue bypreventing IllicitTrade
Enhance S C M        upply   hain   anagementefficiency
Final goal?
Prevent distribution ofthe illegal tobacco!!
Global Illicit Tobacco TradeSituation (For Reference)
Campaign for Tobacco-FreeKids in 2006 report
Illicit Tobacco     Gov.              Market Share      Loss(US$)Global                11.6%      40.5BillionHigh Income  ...
Globally           Annual Sales                        Turnover                  >Government LossUS$ 40.5              US$...
SERIOUS PROBLEM   WORLDWIDEIllicit TobaccoRatio (%)   No data    0-5    6 - 10   11 - 20   21 - 30   30+
Illicit Market Share (%)           30+                  21-30                   11-20                       6-10          ...
TOBACCO DISTRIBUTION SOLUTION Using RFID Technology
TOBACCO DISTRIBUTION SOLUTION Using RFID Technology
TOBACCO DISTRIBUTION SOLUTION Using RFID Technology
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TOBACCO DISTRIBUTION SOLUTION Using RFID Technology

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コンセプトプロポーザル:
これも、以前にコンセプトプロポーザルとして作成したスライドですが、使用しなかったので下記に公開します。
マレーシアの不正たばこ流通は年々増加を続けており、近年は全流通量の30%超にまで達しています。そして、たばこの税収、たばこメーカーの売上げも大きな影響を被っています。
政府はセキュリティーマークの印刷などの対策を行ってきましたが、不正たばこに対して効果は得られていません。
そこで、本スライドではUHF帯RFIDタグの適用により、たばこ流通の可視化を行い、不正たばこが流通しづらい環境の整備を提案しています。
ただ実際には、マレーシア国内の取締りが効果的に機能しておらず、RFID技術のみで事態の改善を図ることは困難と言えます。

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TOBACCO DISTRIBUTION SOLUTION Using RFID Technology

  1. 1. TOBACCO DISTRIBUTION SOLUTION Using RFID Technology ~executive summary~ 13th Jan. 2012
  2. 2. Current Malaysia’sTobacco Situation?
  3. 3. Annual Tobacco Consumption Amount 23.3billion(Yr 2009)
  4. 4. Tobacco Consumption Shift (Billion) 25 23.3 20 20.8 18.7 15 10 2000 2002 2009
  5. 5. Public Health ConcernsEncourage Smokers to StopPrevent Youngsters fromSmoking
  6. 6. Tobacco Price Shift (RM) 12 10 8 6 4 2005 2009 2004 2006 2007 2008 2010 2011(Dunhill 20s)
  7. 7. Tobacco Price Increase,same time,Tobacco Consumptionhas Increased!?
  8. 8. One of the MAIN reasons:ILLICIT TRADE &SMUGGLING
  9. 9. The MAIN Illicit smuggling Countries Thailand China Indonesia Cambodia
  10. 10. Illegal Tobacco Ratio Shift 40% 30% 20% 10% 2004 2005 2010 2011 2006 2007 2008 2009
  11. 11. Annual Total Illicit Tobacco About 9 billion(Yr 2009)
  12. 12. Smuggled & Illicit TobaccoMarket Price under
  13. 13. Estimated Profit fromIllicit Tobacco TradeRM 1Billion
  14. 14. Gov. Taxes Lost EstimatedRM2Bln.
  15. 15. From August, 2004
  16. 16. Special device:Authenticity Check
  17. 17. Control illicit trade
  18. 18. …however, with little effect !?
  19. 19. Several factors
  20. 20. Production / Distribution TobaccoManufacturing Tobacco pricecontrol Distribution Security system technology SCM control Tax rate Illegal tobacco Detection distribution Custom device inspection Consumer Syndicate attitude Investigation Penalty Retailer attitude Regulation / People Investigation
  21. 21. Can be improved!
  22. 22. 15%  1~2%
  23. 23. 1 Licensing all participants in the tobacco business
  24. 24. 2 Tracking and tracing systems from the points of manufacture to all points of sale
  25. 25. 3 Traceable methods of payment
  26. 26. 4 Strict scrutiny procedures in the selection of contractors during the supply process
  27. 27. 5 Significant financial penalties for infringements
  28. 28. Key factor “Supply Chain Control”
  29. 29. SUGGESTION
  30. 30. RFID Technology Application
  31. 31. Success in Supply Chain
  32. 32. “The U.K. government is sick of losing $7billion in tax dollars every year due to theillegal cigarette trade. In order to avoid thisproblem in the future they are testing out aplan that implements RFID technology.” – May 13th 2011 RFIDiva
  33. 33. System
  34. 34. Production Distribution, Sales Import/Export Record Record RecordUnique ID number Location / Status Info. Time stamped Tobacco tag information • Unique ID number • Manufacturer ID number • Tobacco name / type • Production date • Location information etc.
  35. 35. Registration
  36. 36. Stick tag (Manufacturer)Write production info. (Data lock)
  37. 37. Track & Trace
  38. 38. Update tobacco tag informationLocation managementRecord any abnormal status
  39. 39. Individual history tracking Unauthorized move from factory. Illegal distribution
  40. 40. Point of Sales
  41. 41. Tobacco tag invalidation(Kill)D/B status update
  42. 42. Security
  43. 43. Unique ID number + TIDEncoded data lock function
  44. 44. Inspection
  45. 45. Visual inspectionContactless scanning
  46. 46. Benefit?
  47. 47. Prevent terrorist & crime funding
  48. 48. Help preventincrease insmokers
  49. 49. Increase legaltobacco salesrevenue bypreventing IllicitTrade
  50. 50. Enhance S C M upply hain anagementefficiency
  51. 51. Final goal?
  52. 52. Prevent distribution ofthe illegal tobacco!!
  53. 53. Global Illicit Tobacco TradeSituation (For Reference)
  54. 54. Campaign for Tobacco-FreeKids in 2006 report
  55. 55. Illicit Tobacco Gov. Market Share Loss(US$)Global 11.6% 40.5BillionHigh Income 9.8% 17.6BillionNationsMid & LowIncome 12.1% 22.9BillionNations
  56. 56. Globally Annual Sales Turnover >Government LossUS$ 40.5 US$ 40.4Billion Billion (Yr 2010)
  57. 57. SERIOUS PROBLEM WORLDWIDEIllicit TobaccoRatio (%) No data 0-5 6 - 10 11 - 20 21 - 30 30+
  58. 58. Illicit Market Share (%) 30+ 21-30 11-20 6-10 0-5Albania Cameroon Algeria Pakistan Argentina ChileBolivia Croatia Armenia Philippines Australia IndonesiaBosnia & Herzegovina Estonia Canada Poland China IsraelBrazil Lebanon Columbia Singapore Costa Rica ItalyEthiopia Malaysia Côte dIvoire Taiwan El Salvador JapanGeorgia Morocco Ecuador Thailand Kazakhstan MexicoHong Kong Peru Ghana United Kingdom Nicaragua New ZealandIraq Russia Guatemala United States Panama Saudi ArabiaLaos Sudan India Uruguay South Africa SpainMacedonia Syria Iran Yemen TunisiaUzbekistan UAE Jordan Turkey Venezuela Nigeria Ukraine Zambia Pakistan Vietnam
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