Author: Lara Trail

Part 6 of the ABC’s of Brand Protection series by Authentix focusing on the global scope of the counterfeiting epidemic and how to take action against it to protect your brand, your customers and your revenue.

The ubiquity of publicly available digital, manufacturing, and printing technology has enabled criminal enterprises to produce convincing but dangerously inferior counterfeit products.  Not only do these nefarious organizations damage the brand value of your legitimate products, they can create consumer mistrust, physically injure or even cause death. Those behind many counterfeit operations make millions in profit without regard to the investment you have made or the adverse effects on consumers.

To protect your company and your investment in high value products, brand owners must create a culture of risk assessment and leverage a security solution partner to monitor supply chains to detect, measure, act, and constantly refine the brand protection policy. This means not only developing the program and assigning responsibility to certain stakeholders in your organization but also selecting and working with a trusted security solution partner for risk assessment and deploying innovative technologies and overall program management.  An experienced solution provider will not push a single technology platform, but instead offer a suite of technologies that include a digital cloud platform for data collection and insights to help build trend analysis, track ongoing targeting, and leverage resources for a more effective outcome.  Creating this umbrella of protection that feeds digital insights that initiate action and remediation must be a part of the future for effective brand protection.

Artificial Intelligence and Machine Learning

While still in the early days of adoption, artificial intelligence (AI) is already being applied in some areas of brand protection. Using machine learning, for instance, computers can analyze and learn from large, complex datasets, recognizing patterns that reveal potential fraud or diversion. Packaging can be analyzed along with data compiled from sensors. Anomalies the human eye cannot see can be detected and exceptions can be flagged.

Data and Digital Platforms

It has been said that data is the oil in the engine of many business enterprises today. Despite this, only a few organizations effectively apply this to brand security. Over the next few years, this will change as many experienced security solution providers like Authentix, change the way data is collected and managed for the purpose of product and supply chain security.

Many companies have invested in supply chain and inventory management systems to collect data and optimize inventory management and manufacturing. However, the integration of brand security into this process is often overlooked.  Thus, many brand owners use bespoke physical security mechanisms such as holograms, license keys, and UV inks to manually detect problems in the post manufactured distribution channels. Moreover, as data collection technology improves and is more available to consumers via the ever-present smartphone, more brands may be able to actually integrate the reciprocal interaction with consumers via smartphones and products to begin the awesome scope of data collection towards the point of sale.  These days, more smartphones are capable of image and code collection at high resolution with native and downloaded applications for digital interaction with products and manufacturers.

Engaging with consumers via product interaction is not new. Certainly, many consumers have been scanning QR codes for years to gain more detailed product information, see other products in the lineup, and to take advantage of rewards and discounts. However, with many manufacturers, using this consumer interaction to authenticate legitimate from counterfeit or diverted products is tricky to say the least.  Therefore, using multiple layers of digital collection capabilities and correlating the data over time is the best approach. This may include a digital collection increment by inside inspectors who are querying for a graphic security feature using a proprietary mobile application.  This will immediately attest to UID level authentication and traceability or provenance. Alternatively, consumers may inquire directly via a QR or NFC basis. This would require no special mobile application but provide important geography, distribution, duplicate code, and transactional data that can help regarding distribution and transactional point of sale feedback, thereby securing the supply chain.

 

Right Data, Right Time

Having the right data at the right time will speed reaction times, enable faster diagnosis of issues, and deliver a more complete understanding of what specific corrective actions are needed and when. For instance, the DigiTrax™ digital platform is a cohesive data repository and dashboard interface that enables the collection, storage, and analysis of secure transactions to help companies make informed decisions on brand protection issues. DigiTrax™ is a secure, comprehensive, cloud-based, end-to-end platform designed to deliver a complete picture of your authentication and consumer interactive transactions and correlated results. It also is configurable to be customized to each client’s needs for detection, measurement, and targeting for unauthorized product placement and helps to form policy on corrective actions and investigations.

If the past is a prologue to the future, a tsunami of counterfeit goods continues to make its way into the global marketplace – from products such as luxury items, medicines, food, spirits, auto parts, and many more. The damage from illicit and fake products can cause nearly incalculable damages, including loss of human life, lack of consumer trust and the overall devaluation of your large brand investment.

So whether you choose to invest in the latest emerging single technology as a “one off” approach or you choose to select a fully integrated solution provider with a full technology suite – it is important to remember that ultimately, it is how you take action on the information retrieved from the security solution that ultimately determines how effective your product protection effort is. Risk will continue to grow as the arsenal of tools that criminals gain access to continues to expand. Stay ahead of the game and consult with a security solution provider who has the experience handling rapid deployment to help you migrate your organization to a digital platform as an ultimate component for brand enforcement strategy.

For more brand protection basics – why it is necessary, how it works, who is vulnerable, how to implement an effective program, what to look for in a technology partner, and which emerging technologies will make a difference in the future – download the eBook, The ABC’s of Brand Protection.

READ PART 1     |      READ PART 2    |    READ PART 3    |    READ PART 4     |     READ PART 5

Part 5 of the ABC’s of Brand Protection series by Authentix focusing on the global scope of the counterfeiting epidemic and how to take action against it to protect your brand, your customers and your revenue.

The current counterfeit landscape is a “not if, but when” environment. At some point, brand owners will experience an unauthorized product in their supply chain.  Given this inevitability, your product security strategy should be thorough, with a strong emphasis on implementation planning to enable detection of problems and action to mitigate and manage accordingly. One of the most effective deterrents to risk is teaming with a partner with the requisite skills, experience and talent to assist you in all facets of brand protection.

Qualified brand protection partners understand what you’re up against and can work with you to develop, implement, and manage a proactive strategy to help insulate your company against illicit trading of diverted or fake products. What should you look for in a partner? The following are key considerations when you are vetting an authentication solution provider:

1. Your business is their business

Choose a company that understands your business and offers consultative services—not just a technology.  It’s critical that they have experience relating to your industry and are quick to understand the challenges you face.  Experienced solution partners ask the right questions to help you articulate your exact concerns, assess risk, and work with you to set realistic goals for your program.

2. Thorough risk assessment plan

Determining the appropriate level of security required for a given product requires a thorough risk assessment strategy. The strategy provides insight into the risks in the market, the nature of product distribution, complexity of the supply chain and the goals for the brand. The appropriate security level depends on the exposure to counterfeiting and the value of the product to the brand owner. Determining the appropriate scope of protection, budget, and level of security necessary to mitigate the perceived risk is not a “one size fits all” approach and may differ from product lines and geographies.

3. Customized solutions

Qualifying a security solution provider also means finding one with the ability to customize tools and implementation plans to fit the unique challenges of your industry and company. For instance, your partner should have expertise in the types of product packaging, printing, manufacturing, and existing supply chain attributes to know what existing substrates, inks, adhesives, varnishes, and enclosures used already would be the best vehicle to roll out a covert security feature quickly.  Ask them if they offer:

• State-of-the-art covert and overt inks or marking systems
• Multilayered security features
• Monitoring and enforcement plans
• Ability to financial support the inventory and other requirements
• Implementation services, trial printing programs, evaluation of existing processes
• Data capabilities – dashboards, cloud platforms

4. Multilayered approach

Decades of experience have proven that there is not a simple “silver bullet” technology that can be applied in all situations for a perfect brand protection strategy. A multilayered approach in which overt, covert and forensic features are applied in various ways is often the most effective long-term solution against counterfeiting. How much experience does the security solution provider have in this area?

5. Supply chain integration

More than likely, your current supply chain is complicated and lacks visibility at various points. An effective security solution provider should be able to integrate within that chain without causing disruption to the existing processes. In addition, the partner should be agnostic without any prejudice towards a given technology and be willing to use a suite of options to consider. The best partner will be able to objectively analyze the situation, identify and help you determine risk, and recommend multiple scenarios for your consideration.  Each situation is different – beware of single technology solutions offering only one type of choice to solve.

6. Print trials and authentication support

An experienced security solution partner should be able to certify and ensure security mandates for your vendors. All manufacturing and handling of security materials should be completed in a secure facility under full chain-of-custody and auditing.  A security audit is often the best way to determine this. The brand owner should understand that appropriate physical security and auditing procedures are maintained for the benefit of all parties. It is important to only work with a partner with quality accreditation appropriate for the subject matter and technologies involved.

7. Talent and reach

Your security solution partner should have technical and commercial teams to provide the appropriate level of expertise required to authoritatively advise on the features of their technology and implementation. In the case of a global brand, your partner should have a global footprint and reach. This includes delivery, logistics, servicing, technical support, customs handling, and regulatory knowledge to properly handle regional and country-based compliance issues.

8. Proven implementation strategy

Some companies might be great at strategy and planning but drop the ball when it comes to implementing those plans. It’s important that a partner provides extensive documentation of their experience implementing programs, including a resume consisting of several multi-year customer relationships. In addition, any qualified provider should agree to become an integrated part of your team and extend that support to your third-party vendors.

9. Committed partner

The right security solution partner for you should see you through the good times and the challenging ones, too. You deserve an ongoing relationship with a select team of people committed to help stay steps ahead of potential risks and actionable plans when those risks become realized.

For more brand protection basics – why it is necessary, how it works, who is vulnerable, how to implement an effective program, what to look for in a security solution partner, and which emerging technologies will make a difference in the future – download the eBook, The ABC’s of Brand Protection.

Download the eBook

READ PART 1     |      READ PART 2    |    READ PART 3    |    READ PART 4

From Risk Identification to Full Implementation

Part 4 of The ABC’s of Brand Protection series by Authentix focusing on the global scope of the counterfeiting epidemic and how to act against it to protect your brand, your customers and your revenue.

In articles 1, 2 and 3 of this series, we’ve discussed the vast scope of the global counterfeiting problem, the tactics used by counterfeiters, and security features used on many products today to detect and mitigate these compromises. You are aware that this is a massive problem but how do you determine if your products are at risk? Understanding and assessing these risks is the first vital step to start mapping out your company’s action plan, resulting in an effective brand protection program.

Five Steps to Determine if Your Products are at Risk

1. Identify the risk areas

First, develop a risk inventory for your product line. The level of risk might differ depending upon supply chain complexity, geography, price point, margins, and anticipated demand. Consider these questions to identify vulnerabilities:

• Is my product line high volume with a low variable cost to produce?
• Are these products sold at higher price points and gross margins?
• Does my product line have an existing or potentially large market share?
• Does my product line and/or packaging currently have covert or overt security features that are economic deterrents to prevent counterfeiting?
• Do we sell through a complex supply chain and lose visibility to the point of sale?
• Are any of these products sold online or manufactured in countries without stringent counterfeit enforcement laws?

2. Assess risk

Determine the likelihood, impact, and overall threat of each risk factor. How susceptible is each product in your portfolio for attempted compromise? Use this information to create a portfolio of the higher risk products which includes:

• Aggregated risks – score each product with weighted indicators to prioritize by risk potential
• Map of the supply chain environment – what are the highest points of exposure and where do we have access?
• Potential short- and long-term damage – Consider:
  • How could adverse events of illicit supply affect consumer trust in your brand?
  • What about liability from health issues caused by compromised product?
  • How much market share and revenue dilution could be happening?

3. Develop a risk management strategy

Examine the results of your risk assessment to create an integrated strategy for each high-risk product that includes potential solutions to address all the foreseen threats:

• Adopt a defined set of policies and procedures where your stakeholders are aligned
• Look at available solutions to address specific product risks by threat area; for example – consumer safety vs. losses from diversion activity
• Address what actionable steps can be taken at the physical points in the supply chain where threats are the greatest
• Play out each risk scenario and escalation possibilities for contingent action upon the event including communication strategies
• Prepare a budget to implement solutions based on your assessment

4. Create an action plan

Responses to the most pressing threats can now be put into action by organizing management, information, and technology solution partner(s). Your action plan should include the following three categories:

• Detection and Deterrence – solutions that provide detection of a non-authorized product in the supply chain, proactive awareness campaigns, investigatory procedures upon detection, vendor agreements that include security policies for handling or manufacturing higher risk products, and unannounced audits of downstream distribution partners.
• Enforcement – the pre-determined action you plan to take upon the detection of an adverse event. This might depend on the event’s geography, supply chain level, and the resources you have allocated for enforcement.
• Prosecution – plan the specific steps that will be taken to support investigative and forensic efforts upon the discovery and confirmation of responsible parties. In some countries, enforcing your supply agreements against offending distribution partners might be a better course of action than criminal prosecution.

5. Monitor risk and continually re-evaluate your strategy

The last step in your strategy is a closed loop. Constant review of your data analytics offers an opportunity to better understand changing risks, increased or decreased vulnerabilities, and allows you to refine your actionable policy proactively. Today, data visualization coupled with a strong physical security element is even more critical in the fight against illicit product placement activity.  Analyze and act on these insights revealed in the reporting information– from new counterfeit hot spots to changing risk as time evolves.

The fact is no one solution or security measure will be the panacea to address all instances of product compromise across the global marketplace. However, as a brand owner you can assess these risks and select the right security solution partner(s) to help minimize the damage and keep you in charge rather than being in a reactionary stance. Also, it is important to select solution partners with lengthy experience in multiple industries who can offer a full suite of technology and service solutions that can both be rapidly implemented and scale to your business needs.

For more brand protection basics – why it is necessary, how it works, who is vulnerable, how to implement an effective program, what to look for in a technology partner, and which emerging technologies will make a difference in the future – download the eBook, The ABC’s of Brand Protection.

Download the eBook

READ PART 1     |      READ PART 2    |    READ PART 3