Combating Packaging Counterfeit, tampering and Optimising

Supply Chain Efficiency through Track & Trace Systems

GS1 India

A standards organisation set up by the Ministry of Commerce and Industry,

Govt. of India with founder members comprising:

– Ministry of Commerce

– CII

– FICCI

– ASSOCHAM

– FIEO

– Spices Board

– BIS

– IMC

– IIP

– APEDA

Affiliated to GS1 Global Office, Belgium alongwith 110 GS1 organisations

worldwide.

890 indicates India as

country of origin

8 9 0 1 0 1 6 0 0 0 5 0 8

Joint Government – Industry

initiative

VINSAK

• For last two decades, consistently witnessed a remarkable

growth.

• Headquartered in Gurgaon, India.

• More than 50 products and solutions.

• Turnover of approx. USD 40 million worldwide.

• Alliances with more than 15 partners across the world.

• A team of talented professionals in different streams

• Extensive reach across Middle East, African & Asian markets.

ANY GRAPHICS

• Any Graphics Pvt. Ltd. is located at Sec-65, Noida (India).

• Serving from last 36 Years with drastic growth in business.

• 1 Lac Square Feet production area with new state of art production facility.

• Dust controlled and Fully Air Conditioned working area.

• Working with more than 7000 products for more than 350 clients.

• Approx. USD 70 Millions turn over including exports.

• Grabbed 3 Global Awards & 27 National Awards for excellence.

• Proudly introduced and launched Packaging & Printing Labels with Fresnel Lens effect and Natural feel in India.

Supply Chain Challenges

5

• Lack of transparency making

Supply Chain vulnerable to

infiltration by counterfeiters

• Supply Chain processes based on

legacy systems with low visibility

inhibiting unique object

identification, traceability and

effective recall

Supply Chain Management - key building blocks

Global stds: building blocks for safe & secure Supply Chains

7

The Counterfeit Problem

8

• The World Health Organization views the

counterfeit of medical products as a tremendous risk to public Health

• G20 member countries have an estimated 3,000 deaths , lose USD $77.5 billion in tax and an additional USD $25 billion

increased cost of crime annually due to counterfeit consumer goods

• Legitimate businesses must compete with counterfeiters while brand owners and Intellectual Property Rights (IPR) holders

face significant business and financial risks

The Solution

9

• Adoption of anti-counterfeit

technologies to enable product

authentication at packaging level

• Implementation of Track & Trace

system to enhance visibility across

supply chains

• Global engagement among regulators,

standards body, industry and other

supply chain stake-holders to ensure

safe trade across borders

Anti-counterfeit Strategy

The introduction of a unique identification for products will enable authentication and traceability systems which will make more difficult for counterfeiters to intrude into legitimate supply chain

• A multi-layered approach

• Secure:

- Product and packaging

- Movement of products through the supply chain

- Business transactions

Maintaining universal and uniform electronic pedigree across all supply chain stakeholders

• Ensure appropriate regulations and enforcement.

• Increase penalties

• Heighten vigilance and awareness

• Increase int’l collaboration

Strategy & Technologies – JM Bobée – 1 September 2008

Key Anti-Counterfeiting Technologies

Tamper evident outer pack closure system

(seals, glued flaps, perforated carton)

Authentication technologies

Overt & Covert features

Traceability

technologies

Unique pack

Identification

(serial number)

+

Online checking system

(end-to-end / e-pedigree)

Application of Technologies at

different packaging levels can

bring an important contribution to

build an efficient anti-

counterfeiting strategy

Increased

Protection (Patient/Product)

12

Traceability across the supply chain

Traceability – Trace back & Track forward

13

Traceability Implementation

Implementing a traceability system within a supply chain requires

all parties involved to systematically link the physical flow of materials

and products with the flow of information about them.

14

Carrier/Third Party Logistics Provider (3PL) Responsible for the delivery or shipping of the traceable item. Processor/Manufacturer/Primary Producer Receives inputs and transforms those inputs. (Ex: farmer, an abattoir or a packer that consolidates product form a number of growers, and a food manufacturer that processes food ingredients into a finished product) Retailer/Point of Sale or Service Operator Final relationship with the consumer (Ex: retailer, healthcare provider, institution, hotel, restaurant) Warehouse/Distribution Centre Responsible for the handling (may transform) and storage of the traceable item. Authorities The party legally mandated to protect the public interest.

Who are the parties in the traceability process?

Traceability Process Participants Parties and Roles

How Does Traceability Works?

Global Traceability Standards provides guidance on how to implement

effective traceability solutions.

– Unique identification

• Global product identification number

• Lot/batch number or serial number (unique number at the unit level)

– Data capture

• Bar coding or radio frequency identification (RFID)

– Links management

• Managing identification from the point-of-manufacture to the point-

of-sale/point-of-care

– Data communication

• Associate the physical flow of products with the information flow

• Different information sharing models

16

• Defines a process independently from the choice of

enabling technologies

• Defines minimum traceability system requirements for

companies of all sizes across industry sectors

• Details the corresponding GS1 standards used within

information management tools

• Meets the core legislative and business need to cost-

efficiently trace back (one step down) and track forward

(one step up) at any point along the entire length of the

supply chain

• Describes the creation of accurate records of transactions

• Provides for fast data communication about the traceable

item between trading partners

GS1 Traceability Standards

17

• Data Generation

• Unique Codes

• Unique Serial Numbers

• Logical Data

• Product detail

Traceability Components

18

• Data Apply Center

• Pre Printed labels

• High resolution VDP facility

• Printing on pre printed labels

Or Direct printing on product

• Online Inspection Center

Technological Requirements

19

Data Generation Center

Data Printing & Apply

Distribution Of Product

Capturing Of Applied Data

Central Server

Sub Distributor

Distributor

Retailer

End User

Information exchange within a Traceability system

20

• Data Capturing

• Applying Labels on Products

• Log report form Inspection System

• Data collection before dispatch

• Data matching from Data base

Traceability : Steps for Information Exchange

21

• Retailer – End User.

• Data capture at time of selling to

end user.

• End user must be able check

authentication of product.

• Customer must receive message

from data center via email or SMS

as customer scan given unique code

on product.

Traceability : Steps for Information Exchange

GS1 B2C : Connecting Consumers to Trusted Source of Data

22

Global Engagements

• Anti-Counterfeit stds (ISO/TC 246) • Product Recall stds (ISO/TC 240) • Product Safety stds (ISO/TC 243)

• WCO IPM tools • GS1 visibility framework and identification standards

• Product safety portal for consumers, Industry and regulators • Supply Chain visibility

• For traceability and recall

• G2G recall portal and counterfeit detection

GS1 –OECD Partnership

Fighting Counterfeits -GS1-WCO Collaboration

Compatibility with ISO standards

In Conclusion

An interoperable framework for anti-counterfeit & authentication services

needs:

• Globally unique identification of products, companies, transactions etc.

• Traceability across Supply Chain involving multiple trading partners.

Global stds can assist in fight against counterfeit and illicit trade by:

• Describing the stds, processes and technologies that can uniquely identify objects and activities to enable interoperable traceability systems involving multiple organizations and supply chains.

• Documenting how std-based approaches facilitate more productive and

mutually beneficial relationships among trading partners.

Thank You

TRACK & TRACE

2

• Track and trace systems is a comprehensive solution for the pharmaceutical industries in protection against counterfeit, ensures high quality product and reliability in transportation of the pharmaceutical products from manufactures , suppliers and consumers.

• Strong brand identity is integral to great businesses, but they are threatened daily by the counterfeiting industry.

• Counterfeiting operations can be incredibly sophisticated and lucrative.

• They are having more of an impact than ever, as both globalization and E-commerce continue to grow.

The Three C Challenges of

Pharmaceutical Co.’s

June 14 3

Competition from generic lower cost products from emerging markets is squeezing prices at a time when other factors are reducing prices.

Compliance is a significant element of a pharmaceutical industry. To ensure the safety of drugs, different country’s regulators have embarked on various legislations.

Counterfeit drugs are major problem estimated to cost between 7-10% of global pharmaceutical market revenue. The challenge of counterfeit drugs must be addressed to ensure future revenue streams, but the solution is likely to need government support.

Benefits of Track & Trace Solutions

June 14 4

Competition a T&T solution can help in detecting areas for further sales generating or product development efforts by identifying such parameters as the best selling product lines.

Compliance a T&T solution in conjunction with current requirements for serialisation can ensure regulatory compliance.

Counterfeit conjunction with serialisation and an authentication function can help ensure that the drugs reach the destination in time, in its original shape and content. the solution can help governments ensure tax revenue and also ensure that consumers avoid getting hurt from counterfeit drugs.

5

Revenue Protection

• Revenue protection and prevention counterfeiting on pharmaceutical tobacco, and alcohol products.

6

• With the global value of counterfeit goods estimated to be worth around $1.8 trillion and the products representing more than 2% of the world’s total current economic output.

• It should come as no surprise that one of the most challenging issues facing brand owners and retailers is the security, integrity and protection of their brands.

• It is estimated that the prevalence of counterfeit medicines ranges from less than 1% of sales in developed countries, to between 10-30% in developing countries, depending on the geographical area. (As per report by World Health Professions Alliance).

• Approximate loss to Indian government are several tens of millions USD annually of lost tax revenues

7

Data Generation Center

Data Printing & Apply

Distribution Of Product

Capturing Of Applied Data

Central Server

Sub Distributor

Distributor

Retailer

End User

8

• Data Generation

• Unique Codes

• Unique Serial Numbers

• Logical Data

• Product detail

9

• Data Apply Center

• Pre Printed labels

• High resolution VDP facility

• Printing on pre printed labels

Or Direct printing on product

• Online Inspection Center

10

• Data Capturing

• Applying Labels on Products

• Log report form Inspection System

• Data collection before dispatch

• Data matching from Data base

11

• Distribution Of Product

• Product distribution detail

• Place and Mode of transport

• Distributor – Sub distributor

12

• Retailer – End User.

• Data capture at time of selling to

end user.

• End user must be able check

authentication of product.

• Customer must receive message

from data center via email or SMS

as customer scan given unique code

on product.

INTAGLIO

• The term Intaglio, is derived from the Italian “Intagliare” means “to carve, to cut out, to incise” and covers a host of hand printing processes usually using metal plates (most often copper, zinc or steel).

• Areas below the surface hold the ink.

• Image to be printed is cut or

scratched into a metal surface by steel or diamond-tip tools, or etched into the surface by acid.

Intaglio: To Make a Print…

• First, printmaker daubs the plate with viscous printer’s ink

• Then, wipe the surface clean, leaving ink only in the etched or grooved portions

• Next, damp paper is placed on the inked plate

• Which then, passes beneath the press roller

• A print is made when the dampened paper picks up the ink in the grooves

• The pressure of the roller creates a characteristic plate mark around the edges of the print

Intaglio

• Traditionally, intaglio printing was done from polished copper plates

• Now used - o Zinc

o Steel

o Aluminum

o Plastic

• Two Principal Intaglio processes - o Engraving

o Etching

Engraving

• An intaglio printmaking process in which grooves are cut into a metal or wood surface with a sharp cutting tool called a burin or graver. Also the resulting print.

Engraving

Process

• Lines are made by pushing the burin through the metal to carve a groove.

• Thousand of fine lines define the shapes, masses, spaces values.

• Textures of the depicted objects.

The complex richness of engraved lines in Albrecht Durer’s engraving

THE KNIGHT, DEATH AND THE DEVIL.

Types of Engraving

Claw Engraving

Wood Engraving

Copper Engraving

Etching

• A printmaking process

• To begin this process, you must first prepare a metal plate

with a protective coating of acid-resistant material that

covers the copper or zinc called a ground.

• Then, the printmaker uses a pointed tool to draw through

the ground, exposing the metal, which will create more

relaxed or irregular lines than those of engravings.

• The plate is then immersed into acid.

Rembrandt Harmensz van Rijn Christ Preaching. C. 1652 - Etching.

• The acid then “bites” into the plate where the drawing has exposed the metal, making a groove that varies in depth according to the strength of the acid and the length of time the plate is in the acid bath.

• Aquatint is an etching process used to obtain shaded areas

in black-and-white or color prints.

• When the plate is put down into the acid, the areas that are

exposed between the paint particles are eaten away to

produce a rough surface that can hold ink.

• This in turn produces values that are light or dark.

• In Francisco Goya’s print entitled “The Disaster of War,” he achieves the lightly colored sky and some of the shading on the ground by using aquatint along with etched lines.

THANK YOU