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© 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.
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