Counterfeit products claim many victims. Besides risking the safety of buyers, fake products harm the brand's reputation. Remedying the damage caused by the sale of fake goods is a difficult and expensive task. Along with legal ramifications, brands lose the trust of their loyal customers.
Brand image is an invaluable intangible asset. It takes time to build a reputation in the market. Counterfeit products destroy the brand image in no time and cost the exchequer. Thus, tackling the issue of counterfeit products cannot be an afterthought. Companies must prevent fake products from entering the supply chain.
Best Practices in supply-chain management
Some of the best practices to safeguard their supply chain are:
- Audit vendors, suppliers, and delivery partners.
- Collate data to look at anomalies in the product journey throughout the supply chain.
- Set up dedicated call centers to enable authenticity verification.
- Integrate barcodes and identity markers with primary and tertiary packaging units.
Need for anti-counterfeit technology to protect the supply chain
Internet and mobile phone penetration have given a boost to e-commerce. With online shopping, it isn't easy to keep a tab on the authenticity of products and sellers. Easy transportation and an increase in accessibility have made supply chains complex. In the current market, fortifying the supply chain is a challenge for organizations. Companies need to get creative while securing their supply chain. Detecting a fake product from a genuine one has become difficult. Consumers cannot verify the authenticity of a product only through subtle physical differentiators.
Globalization and the e-commerce boom have increased the number of hands a product changes. As supply chains become complex, loopholes increase. These gaps can be easy entry points for counterfeit products. So brands are now relying on anti-counterfeit to track and trace their supply chain.
How anti-counterfeit technology can aid in supply-chain management:
Track and Trace strategy
Anti-counterfeit technology like bar codes, 2D and 3D codes can trace every movement of the product. Serialization on the packaging and products ensure that the supply chain remains uninterrupted. The brand can identify any anomalies at any point in the product journey.
Easy Authenticity Verification
Effective anti-counterfeit technology is easy to use. Codes that one can scan with smartphones ensure that one can verify products with ease. So any abnormalities in the supply chain can be detected by all the stakeholders.
Database for supply-chain management
Has someone sold your product in an unauthorized region? Are there specific areas reporting anomalies? Anti-counterfeit technology can help a brand understand the loopholes in the supply chain. The reports can help companies understand the reachability of the supply chain.
Securing the packaging
Using tamper-proof and tamper-evident packaging is crucial. Pharmacies have long depended on effective packaging to secure their products. Anti-counterfeit technology that integrates with the packaging protects every unit of the product.
Easy returns and recalls
Anti-counterfeit technology can reduce barriers for customers returning fake products. The technology can aid the loyalty management program. Brands can thus encourage customers to verify the authenticity of the products. Also, buyers get reward points for returning fakes. So, anti-counterfeit technology can keep the supply chain clean and boost customer engagement.
Counterfeit products are present everywhere. But by using anti-counterfeit technology, brands can take proactive steps to prevent counterfeit.