Anti-Counterfeit Whitepaper


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First whitepaper on the application of GS1 global standards as foundational layers in the fight against counterfeiting. Document was published in February 2013 by GS1 Global Office.

Content coordinator/editor/technical writer/author: John G. Keogh

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Anti-Counterfeit Whitepaper

  3. 3. 3The quest to keep harmful productsout of the supply chain is a quest toprotect the health of people.Patients receiving such productsget, at best, bad treatment.At worst, they can, and do, die.Dr Margaret Chan: Director-General of the World HealthOrganization, 19 November 20121 OVERVIEWThe purpose of this whitepaper is to provide insightsinto the increasing threats posed by counterfeit and illicittrade and to outline how GS1’s global standards, servicesand solutions can play a vital role in counteracting theproblem.The whitepaper highlights key emerging trends anddeceptive practices and outlines how to secure globalsupply chains against the threats of counterfeit goodsthrough greater visibility, traceability and transparency.It will further explain how existing GS1 Standards canassist in reducing the threats, helping to answer thefollowing questions:• What is the business value that will result fromincluding GS1 standards, services and solutionsin my brand protection strategies?• What standards, services and solutions areavailable today?This whitepaper will help readers understand the answersto these questions by:• Describing the standards, processes and technologiesthat can uniquely identify objects and supply chainactivities to provide greater visibility and traceabilitythroughout organisations and their extended supplychains;• Describing how standards-based approaches enablemore productive, mutually beneficial relationshipsamong trading partners by enabling more rapiddetection and recall of unsafe or counterfeit products;• Describing an interoperable framework for objectidentification and authentication services.Overview
  4. 4. 4ExecutiveSummaryThe counterfeit problemInternational cooperation and a sustained and focusedapproach is needed to tackle the rapidly growing coun-terfeit trade which is estimated to reach USD $1.77 trillionby 20151. While the extent and reach of the problemis well understood, reducing the risks and impact willrequire a global collaborative effort between industryand governments as well as the effective deployment ofglobal supply chain standards.Counterfeiting jeopardises public safety, undermineslegitimate businesses and harms national interests:• In November 2012, the South Korean governmentshut down 2 nuclear reactors2after discovering morethan 7,600 parts from 8 suppliers had forged qualitycertificates. The two reactors account for about 5% ofSouth Koreas national power supply. Their suspensionwill significantly reduce the amount of energy supplythat South Korea holds in reserve each day duringpeak winter months in January and February.1 Estimating the global economic and social impacts of counterfeiting andpiracy. Business Alliance to Stop Counterfeit and Piracy, February 20112• The World Health Organization views the counterfeitof medical products as a tremendous risk to publichealth.• G20 member countries have an estimated 3,000deaths annually due to counterfeit consumer goods.1• Legitimate businesses must compete with counter-feiters while brand owners and Intellectual PropertyRights (IPR) holders face significant business andfinancial risks.1• G20 member countries lose USD $77.5 billion in taxrevenues while incurring an additional USD $25 billionincreased cost of crime. An estimated 2.5 million jobshave been lost, increasing the annual cost of welfare.12 EXECUTIVE SUMMARY
  5. 5. 5ExecutiveSummaryTo a great extent the public view of counterfeit productsis one of ambiguity, it is often seen as a victimless crime,which of course is far from the truth. This lack of apprecia-tion of the threat of counterfeits actually encourages andsupports its continued growth. The three major threatsfrom counterfeits are:1. Consumer safety is jeopardized through counterfeitfood, medicines, medical devices, toys, consumerelectronics, alcohol, tobacco, automotive parts etc.2. Economic threat impacts business and governments –reducing the market for legitimate business andreducing revenue for governments – vat, duties andother taxes while increased cost for enforcement.3. National Security is put at risk with counterfeit elec-tronic components in military and defence equip-ment poses a national security risk.33 products are penetratinginto legitimate and highly securesupply chains.The increased globalisation of trade coupled with thefact that in many countries the penalties for trading coun-terfeit goods are low or non-existent has encouragedthe growth of global counterfeit activities, in many casesoperated by criminal gangs and terrorists groups.For these reasons global solutions are needed to addressthe ever-growing threats presented by this flourishingcriminal activity. In essence, current supply chains arenot fit for purpose in terms of their ability to protect anddetect counterfeit penetration into legitimate and securesupply chains.
  6. 6. 6ExecutiveSummaryThe SolutionGS1 is ideally positioned to play a key role in the devel-opment and deployment of Global standards, servicesand solutions to combat counterfeiting. Solutions tocounteract the growing counterfeit problem need to beglobal in nature. This is where GS1 comes in and providesreal and immediate answers to this growing problem.GS1 is the only global not-for-profit organisation assignedthe trusted role of Issuing Agency for unique objectIdentifiers. This vital role is authorized by the InternationalStandards Organization (ISO) who has allocated a blockof Issuing Agency Codes (IAC’s) to GS1 ranging from 0 to9. In accordance to ISO standards, no other organisationshall be allocated this block of unique identifiers. GS1’srole as an Issuing Agency is to ensure allocation rules aredefined, identifiers are registered, controlled and main-tained to ensure global uniqueness.As an Issuing Agency, GS1 assigns Unique Identificationkeys that supports various industries with globally uniqueidentification of objects including physical goods, logis-tics units such as pallets and containers, returnable assets,physical locations, services etc. Upon registration withGS1, a company is assigned a globally unique CompanyPrefix (GCP), which allows them to create any of the GS1identification keys in support of their business and supplychain operations.Key ConceptsGTIN - Global Trade Item NumberGLN - Global Location NumberSSCC - Serial Shipping Container CodeGRAI - Global Returnable Asset IdentifierGIAI - Global Individual Asset IdentifierGSRN - Global Service Relation NumberGDTI - Global Document Type IdentifierGSIN - Global Shipment Identification NumberGINC - Global Identification Number for ConsignmentGCN - Global Coupon NumberEssentially the global solution to the counterfeit problemstarts with a foundational layer of globally acceptedsupply chain standards acting as building blocks to iden-tify objects and then to capture the information aboutthem at key points in the supply chain and then to sharethe information seamlessly among stakeholders.The GS1 Visibility Framework4pulls all of this togetherand provides the much-needed foundational layers andbuilding blocks that allows organisations to focus moreon how to use the information rather than how to get theinformation. It helps to improve collaboration, traceability,transparency, security, and visibility in the supply chain.A key component of the Visibility Framework enablingreal-time sharing of supply chain event information is theapplication interface standard called Electronic ProductCode Information Services5(EPCIS), which is both industryand technology neutral. Real-time event managementcan play a vital part in helping to secure supply chainsand reduce the risk of counterfeit penetration whilegoods are in transit.Immediate benefits can accrue from the usage of existingglobal standards, services and solutions. They can beused by brand owners to provide customs and othermarket surveillance authorities with access to informationwhich could help them to accurately identify objects andthen route their verification query to the authoritativesource for further authentication purposes.4
  7. 7. 3 THE COUNTERFEIT PROBLEM7TheCounterfeitProblemCounterfeiting has changed from being largely localisedoperations into highly profitable global businesses withmass production, global sales, and complex global distri-bution networks. Counterfeit physical objects can befound in almost every country and in virtually all sectorsof the global economy.Counterfeits are often substandard and can pose serioushealth and safety risks, with an estimated 3,000 deathsannually in the G20 member economies. In 2011, theParis-based Business Alliance to Stop Counterfeit andPiracy (BASCAP) estimated that the counterfeit and piracymarket is growing annually at 22%.According to BASCAP counterfeiting and piracy impactvirtually every product category. The days when only luxurygoods were counterfeited, or when unauthorized musicCDs and movie DVDs were sold only on street corners arelong past. Today, counterfeiters are producing fake foods,beverages, pharmaceuticals, medical devices, electronics,semi-conductors, electrical goods and supplies, auto andairplane parts as well as everyday household products.Millions of fake products are being produced and shippedaround the world to developing and developed marketsalike at increasing rates, penetrating legitimate and securesupply chains. Consumers and patients are at risk from
  8. 8. 8TheCounterfeitProblemunsafe and ineffective products, while governments,businesses and society are being robbed of billions in taxrevenues, income and jobs.The drain on the global economy is significant and thelonger-term implications of the continuing growth inthis illicit trade are enormous. In 2008 the OECD hasreported that “international trade in counterfeit andpirated products could be up to US$ 360 billion”. Takentogether with the value of domestically produced andconsumed counterfeits, the significant volume of digitaland fake products being distributed via the Internet, andthe loss of economic development, harm to health andsafety, reduced technology transfer, and innovation, thetotal magnitude of counterfeiting and piracy worldwideis estimated to be well over US$650 billion. The BASCAPreport has used the OECD 2008 analysis and estimatedthe 2015 impact of USD 1.77 trillion.A disorder of this magnitude undermines economicdevelopment, a sound market economy system and openinternational trade and investment. No legitimate businessand no country is immune6to the impact of counterfeitand piracy. No single business, business sector or countrycan fight this battle alone.6 order to ground this discussion we have chosen to lookbriefly at a sector which more than any other has beensucessfully targeted by counterfeiters with dangerousconsequence for patients and serious impact on the legit-imate manufacturers of branded and generic medicines.OECD CategoryOECD Estimate in$ billions (2008)BASCAP Estimate in$ billions (2015)Internationally traded counterfeit and pirated products $285 - $360 $770 - $960Domestically produced and consumed counterfeitand pirated products$140 - $215 $370 - $570Digitally pirated products $30 - $75 $80 - $240Sub total $455 - $650 $1,220 - $1,770Broader economy wide effects * $125 $125 +Employment losses** 2.5 million 2.5 million +* Effects on government tax revenues, welfare spending, costs of crime health services, FDI flows** Estimate limited to G20 economiesTable 1. The Complete PictureEstimate of the total value of counterfeit and pirated products in 2008 and 2015, and impacts on the broader economy and employment.Source: Frontier Economics
  9. 9. 9The link between phar-maceutical counterfeiting,crime and national securityThe World Health Organisation (WHO) views the counter-feiting of medical products as a tremendous risk to publichealth. Pharmaceuticals purchased over the Internet arefrom sites that conceal their physical address are coun-terfeit in over 50% of cases.7While the risk of counterfeitmedicines is low in developed countries, it remains amajor global issue costing the pharmaceutical industrybillion of dollars and the innocent people who take themtheir health or lives.8The deadly implications of counterfeit drugs are wellunderstood to be a central challenge to the integrityof public health systems around the globe, as well as adirect threat to our individual health and welfare. What isless understood is that the profits from this sinister crimeare increasingly being co-opted by an array of organizedcriminal groups9and terrorist entities as a means bywhich to fund their operations around the world. Assuch, counterfeit pharmaceuticals pose a direct threat tonational and international security.7 the sale ofillegal medicines onlineOperation Pangea10is an international week of actiontackling the online sale of counterfeit and illicit medicinesand highlighting the dangers of buying medicines online.Coordinated by INTERPOL, the annual operation bringstogether customs, health regulators, national police andthe private sector from countries around the world.Activities target the three principal components used byillegal websites to conduct their trade – the Internet ServiceProvider (ISP), payment systems and the delivery service.The operation has gained significant momentum sinceits launch in 2008. The first phase of the operation broughttogether 10 countries, with the number rising to 100 in 2012.Results from Pangea V from September 25thto October2nd2012:• 3.75 million illicit and counterfeit pills confiscated;• Estimated value: USD 10.5 million;• More than 18,000 websites shut down;9
  10. 10. 10Trends in Counterfeitingand Deceptive PracticesCounterfeiters will use every means possible to deceiveauthorities and their customers. The following are knowntrends and deceptive practices.12Trends and Deceptive practices• Unbranded physical objects are shipped separatelyfrom their labels, insignia and brand packaging.• Counterfeiters specialising in producing either coun-terfeit labels, insignia or consumer packaging exportthese products to assemblers who complete the finalassembly of the counterfeit objects.• Counterfeit components or sub-assemblies areshipped separately to Free Trade Zones (FTZ) to beassembled and distributed within the FTZ or to coun-tries outside the FTZ.• FTZs are used to mask the origin of counterfeits• Part of a genuine shipment or container/pallet ofgoods are replaced with counterfeits (i.e. genuine andcounterfeit co-mingled).• Sales on the Internet of counterfeit goods indicated asexcess, over-stock or returns.• Consumer-to-consumer (C2C) sales of counterfeitproducts take place both online and offline.• Differences and gaps in local laws, regulations andenforcement ability are taken advantage of to keep asmany stages of counterfeit activities from being shutdown for as long as possible, exposing lower-leveltraffickers to legal ramifications.• Increasing use of the Internet as a sales channel.• Increasing use of legitimate courier and regularpost for small packages, making it more difficult forenforcement to curtail such activity.1312• 133,000 packages inspected by regulators andcustoms authorities, of which around 6,700 wereconfiscated;• 80 individuals are currently under investigation orunder arrest for a range of offences, including oper-ating a clandestine laboratory producing counterfeitmedicines; membership of a criminal group sellingillicit medicine online; and operating websites sellingillicit medicines.The usage of GS1 Standards, Services and Solutions couldassist in building the very basic level of trust betweenbuyers and sellers online. Trust can be added with veri-fiable source information about the seller, the productsand methods to authenticate the products once receivedby the buyer.Continued growth in the online salesof pirated and counterfeit hard goodswill soon surpass the volume of suchgoods sold by street vendors and inother physical markets.1111 The AMR Research study, "Traceability in the Food and Beverage SupplyChain," conducted by Research Directors Lora Cecere and Lucie Draper,and Senior Research Analyst Simon Jacobson
  11. 11. Current Supply ChainOverviewThe existing supply chain in many sectors is not fit forpurpose in terms of its ability to cope with the challengeof the growing counterfeit problem. The shortcomingsare due to the fact that current supply chain processesare based on legacy systems, which in the past wereheavily dependent on paperflows. Although there hasbeen adoption of AIDC (ie. the barcode or RFID tag) andEDI technologies, the solutions deployed, with somenotable exceptions, have not included global standardsfor unique object identification, traceability and eventmanagement as core components and therefore visibilityacross the extended supply chain is often low.The evidence to support this is the poor recall capabilityof US and EU food manufacturing companies as reportedby AMR Research in 2007.13The research found that 67%of Food Companies with USD$5 billion or more in saleshad recalls that cost USD$20 million or more, that it tookon average of 42 days to complete the recall processand that at best they could only locate 43% of affectedproducts in the most serious category of recall. Counter-feit products can be the cause of a serious recall - giventhis reality it spells out the need for greater transparency11TheSupplyChainChallenge4 THE SUPPLY CHAIN CHALLENGE
  12. 12. and visibility of supply chains in order to enable effectiveobject identification and authentication processes tocounteract the increasing threat from counterfeiters.GS1 and industry worked on solving this problem and anew global messaging standard for product recall wasratified in June 2012.14The accompanying online recallnotification service operated by GS1 organizations onbehalf of industry in USA15, Canada16, Australia17, NewZealand18and South Africa19reduces the critical time tocommunicate the recall or safety alert to all supply chainstakeholders including government to less than 1 hour.The standard and the services taken together, reduce risksto business and to consumer safety.Proprietary solutionsare not the answerIn recent years numerous proprietary solutions for objectidentification, authentication and secure supply chainshave been developed mainly in isolation from each other.They lack the critical interoperability required to ensurethat all supply chain partners can readily deploy them.In particular, to be effective across the he multi-tiersupply chain it is vital that all parties have a commonglobally unique object identification and data sharingstandard which can be easily managed within theirinternal systems and with their trading partners.While there is no single method to guarantee the identityand authenticity of physical objects across industries,unique object identification coupled with added securitydeterrents is a requirement in certain industry sectors. Butthese are components of a much wider brand protectionstrategy.14 Soft launch December 2012 with formal launch in June 2013.What is needed then toaddress the challenge?The answer is enhanced supply chain visibility withimproved traceability and transparency along the entiresupply chain and, most importantly, solutions that arebased on open, interoperable global standards whichfacilitate widespread and cost effective deployment.Fortunately, GS1’s global identification systemincludes globally unique identification for products,assets (objects) and locations as well as its standardsfor capturing and sharing visibility and traceabilitydata between supply chain partners and other keystakeholders.This foundational level of identification standards isideally suited to supporting solutions which are neededto secure supply chains and provide effective means ofidentifying and authenticating an object in real-time inorder to ensure that counterfeits are detected before theycause harm to consumer, businesses or national interests.The GS1 Visibility Framework discussed in more detailin section 6, combined with other process standards,such as the GS1 Traceability Standard (GTS) and the busi-ness-messaging standard for Product Recall, become verypowerful tools to enable safe and secure supply chains.GS1 Barcode and GS1 object identifier or GTIN (Figure 1)12TheSupplyChainChallenge
  13. 13. Safe & Secure Supply ChainsDeveloping and deploying safe and secure supply chainsis critical not only to mitigate the risk of counterfeits, butto increase trust and transparency into trading partnerrelationships. The foundation layer for building safe andsecure supply chains can be effectively addressed bydeploying the GS1 Visibility Framework discussed later inthis document and also available as a whitepaper.20The GS1 Visibility Framework takes a comprehensiveapproach based on all key aspects highlighted in Figure2 below and includes real-time event management andtraceability.This whitepaper focus briefly on aspects of Authentica-tion, namely Object Identity and Object Authentication.Industry Use Case:The EU Falsified Medicines Directive which seeks tohave a more secure supply chain for the distribution ofprescribed medicines requires serialisation of patientpacks as well as tamper evident labelling to enableauthentication of medicines prior to their beingdispensed to patients. EFPIA (the European Federation ofPharmaceutical Industry Associations) has developed andsuccessfully piloted an authentication solution based onGS1 automatic identification and data capture standardsas well as the use of EPCIS for the operation of a feder-ated database which ensures that a retail pharmacy cancheck the authenticity of a medicine before dispensingto a patient. In January 2012, GS1 global office and theEFPIA issued a joint vision statement for achieving the EUregulatory requirements.21A practical example of real supply chain visibility, albeiton a small scale, is already working since 2005 and hasdemonstrated the ability to authenticate a productprior to use and ensure a total recall of products acrossmore than two hundred locations within 10 minutes.The NCHCD (National Centre for Hereditary CoagulationDisorders), which has responsibility for the safe treatmentof haemophilia patients in Ireland has achieved 100%compliance with National and EU regulations. Further-more the solution although originally implemented onlyfor patient safety and compliance reasons has resulted invery significant financial savings including an annual ROIof more than 100%, a reduction in stock levels of €5m,and other benefits.In October 2012, McKinsey published a comprehensivereport highlighting the value of global standards in thehealthcare supply chain. A copy of the report can befound at following section will explore Object Identity andObject Authentication briefly.20 and secure supply chain framework(Figure 2)Safe & SecureSupply ChainAuthenticationIs the chain of custody intact?Is the Object Genuine?Pedigree22Is the Objectidentifier valid?Does the Object have theexpected covert and/orovert security features?Where is the Object andwhere is it headed?Where was the Object?(Locations&Custodians)Object Identity Object Authentication Track Trace
  14. 14. Object Identity -which object and what is it?Object identity at the consumer and retail level:At the retail level, the process to verify an objects identitysuch as a consumer product should start with the physicaland visual inspection of the object itself. The integrity ofthe outer packaging and the presence of brand insignia,labels including a barcode with GTIN are vital clues toaid in the object verification process. A consumer shouldnormally direct queries to the retailer before purchasing aproduct. With online purchasing and gifts, this process isnot always possible and the consumer may need additionaltools to verify the identify and authenticity of the product.A consumer should always try to contact the brand ownerthrough a verified website or customer service phonenumber if any doubt exists about the object.Many standalone websites and smart phone applicationsexist today that claim to provide information about prod-ucts including product descriptions, features, nutritionalinformation, pricing etc. etc. However, many of thesesources may not be linked to the trusted product masterdata owner23by the product brand owner. Recent studieshave highlighted that the accuracy of mobile scans forproduct information is very low. GS1 is working withindustry to solve this problem with GS1 Source.GS1 Source is a framework for sharing product infor-mation in consumer-facing digital channels. It is stan-dards-based, scalable and interoperable. Companies canuse GS1 Source to share information about their productsin the cloud. Application developers can then integratethis product data in their web and mobile applications.In 2012, GS1 ratified it’s Trusted Source of Data (TSD) 1.0Standard.24Object Identify for Customs and Market Surveillance:If a customs officer or market surveillance agent has aconsumer product, box of products, a pallet of goodsor container with several pallets under review or inspec-tion, the agent may need to find “identity” informationabout the products and shipment. This can be achievedby using GS1’s Global Electronic Product InformationRegistry or GEPIR www.gepir.orgGEPIR is a unique, internet-based service that givesaccess to basic contact information for companies thatare members of GS1. These member companies useGS1’s globally unique numbering system to identifytheir products, physical locations, or shipments. By usingthe information on the product or its’ packaging, andtyping the numbers into GEPIR, anyone can find the23 24
  15. 15. legally registered owner of that barcode identifier andtheir contact information. Physical location numbers suchas GLN’s and Serialized Shipping Container Codes (SSCC’s)can also be used as search criteria.This is the first and arguably the most critical phase ofobject authentication.Reasons why the object identifier would not appear onGEPIR includes:• Incorrectly entered Object Identifier.• Illegal usage of the Object Identifier – company usingGS1 system but not registered.• Object Identifier on a secondary label on the object orpackaging and was assigned by the importer who isnot registered with GS1.• Counterfeit or fake Object Identifier – GEPIR may returna different company than that on the object. The brandowners website or customer service should be contactedASAP if doubt exists about the identity of the physicalobject under review or inspection. Brand owners willgenerally have multiple brands within their portfolios.• National security and privacy – manufacturers maybe subject to national security or privacy guidelinesand their product and/or company details may not beavailable online.GS1’s global standards also defined a Global ProductClassification Code25or GPC. GPC is a structured; rulesbased classification system that gives buyers and sellersa common language for grouping products in the sameway, everywhere in the world. The official (normative)GPC schema and GPC Browser information is published inOxford English. Both the schema and the browser infor-mation are translated to other languages.GPC is an invaluable tool for brand owners to categorize,register and share object master data with all tradingparties. It can also be utilized by market surveillance toverify object identity and by customs for pre-import riskassessment. One government agency assessment of anobjects GTIN plus it’s GPC highlighted a potential 80%reduction in import holds while freeing up officers formore targeted inspections of high risk goods.25
  16. 16. Object Authentication –is it genuine?Brand owners may provide various online, mobile, fieldor lab based applications and tools specifically for thepurposes of authenticating a product. After verifying theobject identity, the next step is to determine if the objectis genuine.Authentication of an object will depend on who is inthe role of the object inspector and their knowledge ofthe product (object) and its authentication process andprocedure. The inspector may have access to very limitedor very detailed brand protection information, which maybe simple or complex; depending on the objects value,complexity and intended usage.Methods commonly used for Object Authentication(Figure 3)Consumers: a consumer in the role of object inspectorwill generally rely on his or her own knowledge of aproduct (object) and a visual inspection to verify if it isgenuine before a purchase. Consumers generally trust theretailer where they purchase the product to ensure that itis safe and authentic.Customs or Market Surveillance Authorities:in these roles, customs or market surveillance may haveaccess to limited or very detailed confidential informationsources, typically a confidential portal which lists anddescribes the various brand protection strategies for aparticular object. The brand protection strategies canhave multiple verification tools that are required to verifythe authenticity of an object:Key questions for customs or market surveillance include:Does the physical object have the expected digital,covert and/or overt deterrents to prove authenticity?Who is the authoritative and trusted source to verify theobject’s authenticity?Extrinsic Authentication ToolsAdded for the primary purpose ofauthenticationSensory tools• Overt (obvious)• Covert (hidden)• Forensic (lab or field analysis)Digital tools• Object Serialization # (SGTIN)• Object Identification # (GTIN)Hybrid AuthenticationCombination of Digital & Sensory and/or Intrinsic & Extrinsic tools for enhancedbrand protection purposesCould include:• (s)GTIN + Forensic feature• (s)GTIN + Overt seal, label or hologram• (s)GTIN + Intrinsic feature + Covert mark• (s)GTIN + Covert featureIntrinsic Authentication ToolsFunctional or aesthetic elements ofthe product not primarily intended forauthenticationCould include:• Specific materials• Unique construction features• Stitching16TheSupplyChainChallenge
  17. 17. 17TheSupplyChainChallengeBuilding InteroperableAuthentication ServicesWith the massive growth in counterfeiting across allindustry sectors, there is an increase in the number ofsolution providers with proprietary solutions as well asin-house developed solutions by brand owners. The needfor interoperability is well known and GS1 is participatingin the ISO technical committee (PC247) and workingtowards a first draft in 2013.Key to solving interoperability is a global standard andglobal infrastructure to enable it.The recently ratified industry standard called ObjectNaming Service26(ONS) facilitates the need for interoper-ability of object identification and can enable interoper-able authentication services.ONS offers a pragmatic and feasible strategy to addressthis growing need. Existing and new solution providerscould openly compete and innovate with their serviceswith ONS providing interoperability and routing to theauthoritative source and service end point for the brandauthentication information.Brand owners or their solution providers retain full controlof their authentication services including access rightsand privileges, overall security, hosting, and user require-ments. The service located by ONS could also be usedto query blacklists, a record of cloned or compromisedauthentication codes, making it easier and faster todetect counterfeits.Generally, ONS is about the successful discovery of rele-vant and trusted data and services associated with a GS1Identification Key. At its simplest, a GS1 identification keysuch as a GTIN, SGTIN or EPC can be used to look up dataand services configured by the company that assignedit. This can be a very powerful tool for all stakeholders inthe supply chain, including the manufacturer, distributor,importer, customs, retailer, market surveillance, and eventhe consumer.ONS Discovery Topology, GS1 ©(Figure 4)26 PharmaceuticalSupply Inc.Wonder Drug10 x 1mg - Oraldose123InternetEPS anti-counterfeitingservice endpointONS server
  18. 18. 5 GS1 AND ITS ROLE IN SUPPORTINGPRODUCT AUTHENTICATION ANDTRACEABILITY SYSTEMS18GS1anditsroleinsupportingProductAuthenticationandTraceabilitySystemsThe GS1 System is an integrated suite of standards,services and solutions that provide organisations ofall sizes with a common language, enabling them tocommunicate and interoperate seamlessly as they dobusiness. They are the most recognised, utilised andtrusted supply chain standards in the world and includethe ubiquitous barcode, which generate over six billionbeeps at retail point-of-sale (POS) across the world on adaily basis.GS1 Standards play a vital role in providing the criticallinks that build trust and transparency for business part-ners worldwide, from the raw material supplier throughto the consumer.By adopting GS1 Standards as the foundation for businessprocesses and interoperability, companies of all sizes canspeak a common language and leverage the power ofinformation for the benefit of their businesses. Diverseindustries are able to adopt them easily and can deployGS1 Standards to transform the way they do business,following in the footsteps of industry leaders who havealready developed industry best practices.GS1’s global standards for identification of products,locations, and the communication of data associated witheach should form the basis for a company’s anti-counter-feit protocols and brand protection strategies. Specifically,the GS1 System will enable globally unique object identi-fication to be used in conjunction with multiple authenti-cation systems and tools.GS1’s Global Traceability Standard27defines how industriesshould maintain complete traceability (Track and Trace) ofall products from raw material to finished products andtheir movement along the supply chain.27
  19. 19. 19TheGS1VisibilityFramework6 THE GS1 VISIBILITY FRAMEWORKThe GS1 Visibility Framework allows organisations to focusmore on how to use the information rather than how toget the information. It helps to improve collaboration,transparency, efficiency, security, and visibility in thesupply chain. A key component of the Visibility Frame-work that enables real-time sharing of information is theapplication interface standard called Electronic ProductCode Information Services (EPCIS), which is both industryand technology-neutral. It was created and designed byindustry to fit within existing enterprise and security envi-ronments, supplementing existing enterprise informationsystems. It reduces complexities and the costs of systemsintegration while facilitating improved trading partnercollaboration and visibility.EPCIS enables supply chain partners to store and sharephysical event data including the what, when, where andwhy about physical observations (events), independentof the technology used to capture that information.This allows companies to associate and share additionalinformation, or events, relating to an object’s identity. Forexample, companies can associate information such asthe time and date that a barcode was scanned or an RFIDtag was read, the location of that scan/read, and whetherthe object was being shipped or received. Informationthat can also be related to the object includes tempera-ture, associated purchase orders, and the businessreasons for why the object moved. This additionalinformation can be associated in an EPCIS database orrepository. Having this granularity of information providesorganisations with real-time visibility of objects inside anenterprise or across the supply chain between tradingpartners. This, in turn, enables companies to realise thefull benefits of auto-identification, by making use of theinformation that has been captured.
  20. 20. 20TheGS1VisibilityFrameworkGS1 Visibility Framework: Identify, Capture, Share(Figure 5)GLN GTIN GTIN GTIN GTINGTINGIAI GIAI SSCC GLN GLN GSRNCONSUMERPATIENTCAREGIVERRETAILERHEALTHCAREPROVIDEROPERATORITEMCASECASE TRANSPORTPALLETITEMMANUFACTURER PALLET TRANSPORTTRANSPORT DISTRIBUTOR DISTRIBUTIONCENTREGIAIGLNGRAISSCC SSCC SSCCIDENTIFY: GS1 Standards for IdentificationCAPTURE: GS1 Standards for Barcodes & EPC/RFIDSHARE: GS1 Standards for Data ExchangeGLN Global Location Number GTIN Global Trade Item Number SSCC Serial Shipping Container Code GRAI Global Returnable Asset Identifier GIAI Global Individual Asset Identifier GSRN Global Service Relation NumberGS1 BARCODES GS1 EPC/RFIDMASTER DATA Global Data Synchronisation Network (GDSN) TRANSACTIONAL DATA eCom (EDI) EVENT DATA EPC Information Services (EPCIS)EAN/UPC GS1 DataBar GS1 DataMatrix GS1 QR Code EPC HF Gen2 EPC UHF Gen 2GS1CompositeBarcodeGS1-128 ITF-14I N T E R O PE R AB I LI T YITEM MASTERDATALOCATIONDATAITEM/SHIPMENTTRACKINGTRACEABILITY PRODUCTRECALL/WITHDRAWALPURCHASEORDER/DESPATCHADVICE/INVOICEPEDIGREEThe following is an example of the GS1 Visibility Frame-work using EPCIS in action in Hong Kong. This brandprotection service combines Identify + Capture + Shareas well as ePedigree and Authentication services. It wasdeployed by GS1 Hong Kong in 2007 with industry andgovernment support and funding. In this process model,serialized object identity codes are created (see EPC event 1).The serialized identifiers are then associated with theobject master data, which describes the product andentered into GS1 Hong Kong PA Solution. EPC event 2highlights where the 3rd party secure labelling companyprovides the secure label and authentication serialnumber to the manufacturer, who in turn applies thesecure label to the object.
  21. 21. 21Brand OwnerSecureLabelProviderEPC Event 1 EPC Event 2Serial label printing Labelling Ship outDistributor / RetailerSalesCostumerCostumerEPC Event 3SMSAuthentication QueryWebGS1 Hong Kong ProductAuthentication Solution?Manufacturer / PackerGS1 Visibility framework in action(Figure 6)TheGS1VisibilityFrameworkBelow is the query response using the GS1 Hong Kong Consumer Connect mobile application.
  22. 22. 22Conclusion7 CONCLUSIONThe increasing level of counterfeit activity in all sectorsposes a huge challenge to industry and governmentsaround the world. Counterfeiting is not a victimless crimebut one which as we have seen can have dire conse-quences for citizens and industry alike.One of the key underlying causes of the successfulgrowth of counterfeiting is the inability of current supplychain systems to effectively counteract this criminalactivity. The answer lies in greater visibility, traceabilityand transparency across supply chains from raw materialto point of sale/use. Fortunately GS1 and its interop-erable standards services and solutions are capable ofsupporting industry and government agencies to puteffective solutions in place to tackle the problem.The time to act is now. Deployment of GS1 Standards,Services and Solutions as a foundational layer andbuilding blocks is an effective starting point to reduce theserious and significant threats posed by counterfeiting.
  23. 23. 23ABOUT GS1GS1 is a neutral, not-for-profit organisation dedicated to the design and implementation of global standards and solu-tions to improve efficiency and visibility in supply chains. It engages a global community of trading partners, organ-isations and technology providers to understand their business needs and, based on those needs, develops globalstandards. It is driven by close to two million companies, which execute more than six billion transactions daily in 150countries with the GS1 System of Standards. GS1 has local member organisations in over 110 countries. Its global officeis in Brussels.Visit our website at www.gs1.orgFor more informationFor more information about how the GS1 System of Standards can improve your visibility-driven businessprocesses, contact your local GS1 organisation at detailled information about the GS1 System of Standards can be found in the GS1 System Architectureand the GS1 System Landscape papers at:
  24. 24. © Copyright 2013 GS1 AISBL - GS1 is a registered trademark of GS1 AISBLGS1 AISBLBlue TowerAvenue Louise 326, b10B-1050 Brussels, BelgiumT +32 (0)2 788 78 00F +32 (0)2 788 78 99E contactus@gs1.orgwww.gs1.orgThe global language of business