2. Counterfeit components –
a major safety concern
The extent of
the problem
Counterfeit components have long been a problem in the engineering and automotive
components industry.
According to a report by the Federal Trade Commission counterfeiting is estimated to
cost the global automotive parts industry $12 billion a year in lost sales; $3 billion of
that total is in the United States. (“Intellectual Property: Protecting Valuable Assets in
a Global Market,” MEMA Brand Protection Council, 3rd Edition, June 2009.)
While, genuine parts undergo
rigorous testing for reliability,
safety and environmental
compliance, fake parts do not
go through this approval
process. As a result, these
potentially dangerous
components could fail to operate
correctly in an emergency or
life-threatening situation.
In India alone, it is estimated
that more than 37 percent of
aftermarket parts are fake.
Between 5 to 10 percent of all
replacement auto parts in the
European Union are counterfeits.
(Source: Autoweb, “Intellectual
Property Theft in the Automobile
Industry,” July 2006.)
PROBLEM PROBLEM
3. PROBLEM NEED
Problems impacting
brand reputation,
revenues and safety
Need to enhance
supply chain security
Counterfeiting is a major concern in the automotive, aircraft and machinery spares
industry. A significant influx of counterfeit products causes manufacturers to lose
market share and affects their brand reputation, leading to loss of revenue. Furthermore,
poor quality counterfeit products compromise the safety of consumers.
• Counterfeiting
• Product overruns
• Inadequate supply
chain security
• Inadequate supply
chain visibility
• Inaccurate warranty
management
• Warranty returns
Over the years, counterfeiters
have exploited vulnerabilities in
the supply chain to introduce
fake parts in legitimate channels,
whilst authentic components
are being siphoned off for grey
market sales. As a result, Original
Equipment Manufacturers (OEMs)
and Tier 1 2 suppliers need to
maintain a high level of control
in the supply chain to prevent
counterfeit parts from entering
the system. This is particularly
the case in the aftermarket sales /
replacement parts market.
4. nonClonableID™ LABEL WITH BAR CODE
SOLUTIONS SOLUTIONS
The nonClonableID™
advantage
Foolproof security
Security solutions currently available for engineering components use serial numbers,
holograms or bar codes that can be effortlessly duplicated.
nonClonableID™ employs a
unique tamper-evident, materials-
based “fingerprint” for each
component. This fingerprint is
prohibitively difficult to copy (the
fingerprint cannot be duplicated
even by Bilcare).
The nonClonableID™ label is a
unique, materials-based
fingerprint consisting of randomly
distributed particles and cannot
be reproduced even by Bilcare.
Bilcare Technologies offers a
comprehensive solution to
combat counterfeiting through
the implementation of its unique
nonClonableID™ technology.
nonClonableID™ enables
identification, authentication and
brand protection with secure
track-and-trace capabilities.
It enables increased visibility
across the supply chain, providing
insight and agility to manage
risks and tackle issues of diversion
and theft.
nonClonableID™ Data Matrix Labels for Engineering Components
10 mm
Top view
Side view
400 micron
5. Authentication and verification of engineering components
Confirm
authenticity
Compare
nonClonableIDTM
fingerprint with
database content
Securely send
the nonClonableIDTM
fingerprint
Scan the
product label
Authenticate
label and product
1
2
3
4
SOLUTIONS SOLUTIONS
A comprehensive
approach
How it works
The solution enables real-time authentication across the supply chain through
proprietary hand-held portable readers.
Through a GPRS/Internet/3G
Network, the reader
communicates with the back-
end server which is pre-loaded
with the database of the material
patterns. At the back-end server
the material pattern read from
the field is compared with the
original record and a suitable
communication about the
authenticity and pedigree of the
item is sent back, which can be
viewed on a mobile phone or PC.
Post authentication, further
details such as the date of
manufacturing, the destination
of the products to be sold and
warranty information can be
retrieved. Product recall and
part-fitment issues can also be
managed through the real-time
flow of information.
Product with
nonClonableID™ label
Compare with
the original record
Database
server
6. BENEFITS BENEFITS
Integrated
anti-counterfeiting
solution
• Product verification at any
point in the distribution
system, including point-of-sale
and after sales repairs.
• Increased supply chain security
and secure track-and-trace
prevent product diversion and
entry of fake products.
• Each component has
information stored in a
powerful database, facilitating
tracking of stock supply.
• Stakeholders, including
distributors, vendors and
customers, authenticate the
product in real-time to confirm
the parts are genuine.
• Helps dealers handle warranty
claims more efficiently.
Secure product tracking
and brand protection
• Increase supply chain security
to combat counterfeiting
• Ensure brand protection
through the authentication of
products in real-time
• Ensure real-time visibility across
the supply chain
• Enhance consumer safety
• Improve operations and supply
chain efficiency
• Manage warranty returns and
customer services
• Manage servicing, parts
replacement and fleet
management more effectively
