If you are a brand owner, counterfeits are your worst nightmares. They steal money from your businesses and cause safety hazards to your customers. However, global trade is in jeopardy today due to an alarming rise in supply chain tampering. Supply chains are giant puzzles that can easily be disrupted by anything from a natural disaster to a sneaky supplier. Without proper monitoring, you won’t know where the problem lies and will face severe consequences leading to the closure of your business.
So, how do we tackle these two challenges at once? Studies show that the anti-counterfeiting packaging industry has a growth rate of 12%. This means more and more brands are adopting brand protection services combined with supply chain traceability solutions to secure their footing in the market. Today, let’s discuss why you should join the ranks and secure yourself as soon as possible.
Anti-Counterfeiting and Supply Chain Traceability; Why it Matters!
It’s 2024, customers are presented with a plethora of options to choose from. The rising demand for sustainable products is re-inventing global trade. Customers want to know where the products come from. When products travel halfway across the globe before ending up on our shelves, it's tough to know if that fancy chocolate was ethically sourced or that trendy t-shirt was made in a sweatshop.
That's where product traceability comes in. It's like creating a digital passport for every item, following its journey from the raw materials to the store. This is not just about satisfying customer curiosity; it's essential for ensuring product safety, protecting the environment and supporting fair labour practices.
Technological Solution for Anti-Counterfeiting and Traceability.
Traditional methods of manual checking and verification are a complex process today, especially with e-commerce and worldwide selling. This raises the need for automated solutions rooted in tried and tested technologies.
- Holograms: These 3D stickers are the most commonly used anti-counterfeit solution. They're tough to replicate, allow customers to instantly identify and make the packaging tamper-evident.
- Serial Numbers and Barcodes: Every product gets a unique ID, a combination of numbers that acts like a fingerprint, that can be scanned and checked. Serialisation is highly common in the pharmaceutical industry due to the regulation for their mandatory implementation. Barcodes allow for tracking the inventory inside and outside the factory and warehouse facilities, facilitating better traceability.
- Advanced QR Labels: Traditional QR codes are a widely adopted anti-counterfeiting technology. It allows for easy verification and tracking of products. However, having multi-layered, anti-counterfeiting and authentication labels is necessary for the new age. Yellow label by Acviss provides a better alternative for the normal QR code which is susceptible to duplication. The advanced label is unique, non-cloneable and highly accurate. With AI integration, the verification process is faster, smoother and precise.
- RFID Tags: These tiny chips store information about a product and can be read from a distance. The fashion and electronic industry uses RFID tags to let customers verify the product and prevent duplication. However, RFID is considered an expensive measure compared to holograms and serial numbers due to the implementation of specialised technology.
- Innovative Packaging: Packaging distinguishes your product from another, having an innovative packaging design allows you to prevent counterfeiting and adds an extra layer of protection.
- Security Inks: The invisible inks change colour or glow under UV lights, making it tough for counterfeiters to copy. Pharmaceutical products use UV lights to ensure quality and safe products are sent out into the market. However, customers might not be able to verify as it requires special lights to view the invisible inks.
- Blockchain: This cutting-edge technology has seen a rising trend in supply chain traceability. The ability to create permanent records of a product's journey makes it nearly impossible to tamper with. Enabling traceability with higher accuracy and little to no room for error.
- Artificial Intelligence: From messaging apps to running global monitoring systems, AI is everywhere. Smart machines are learning to spot fake products by analyzing patterns and identifying suspicious activity. This allows your brand to completely automate the process of anti-counterfeiting and getting detailed reports on the trends, patterns and predictions.
The Benefits of Implementing Traceability Solutions
Investing in a traceability solution or anti-counterfeiting measures might seem like a big expense. But remember, over $500 billion in revenue is lost to counterfeiters every year. Implementing a preventive solution is not aimed at revenue generating but revenue protection.
- Consumer Confidence: People love learning what they're buying is the real deal and hasn't caused harm to people or the planet. Over 60% of consumers prefer purchasing products that follow sustainable and ethical practices. Aligning yourself with their values builds trust, loyalty and long-term relationships.
- Brand Protection: Fake products damage a company's reputation, erode revenue, diminish customer trust and eventually lead to closure of your business. So protecting your brand against counterfeiting and fraud is crucial for your existence and smooth operation.
- Supply Chain Smarts: Tracking your products helps to find the vulnerabilities, and inefficiencies in the operations. With detailed analytics and data patterns, traceability solutions provide your brand an opportunity to rectify and bring transparency into the supply chain.
- Regulatory Compliance: Many industries have strict rules about product traceability, so being compliant is essential. Recently, the European Union mandated the EUDR for seven product categories to uphold sustainability and environmental protection. Brands exporting to Europe must furnish their sourcing and traceability report, which is transforming the export business.
- Faster Recalls: If a product is unsafe, damaged or tampered with, traceability helps identify the problem quickly, minimize the damage and recall them faster. This immediate pin-pointing and easy identification and reverse tracking have helped to maintain a positive image in the market.
The Challenges of Implementing Anti-Counterfeiting and Traceability Solutions.
Of course, building a perfect system to fight fakes and track everything is easier said than done. There are hurdles to overcome.
- Cost: A major factor that pulls back most brands is the cost of implementing these solutions, especially for small businesses. However, it is important to understand the losses your brand may incur with the rising counterfeiting rates. Anti-counterfeiting is a great ally with a higher ROI in the long run.
- Complexity: The global supply chain is a giant puzzle and implementing a traceability solution into your system will seem complicated. However, solutions like Origin by Acviss can integrate with your ERP systems reducing your efforts of redefining a new supply chain. This also reduces the amount of training, expenditure and third-party support required.
- Privacy Concerns: Collecting lots of data about products can raise privacy questions. Exactly why you should adopt solutions that have proper data management regulations and policies in place. Acviss provides enterprise-grade data security which enables brands to secure their products without the worry of getting their data leaked.
- Lack of Standards: Different industries have different rules, making it confusing for businesses. Even different geographies have regulations that request specific information. It is important to choose the right solution that meets industry standards to avoid any mishaps.
- Resistance to Change: People don't always like change, so getting everyone on board can be tricky. Remember, being proactive is important in today’s competitive world. Backing away to wait for the counterfeiters to strike will be too late and with irrevocable damages.
The Future is Bright: A World Without Fakes
As technology keeps improving, we can expect even more exciting developments in the fight against counterfeits and product transparency. The battle against counterfeits is a team effort. Businesses, governments, and consumers all have a role to play. Get your brand and product secured, so your customers, stakeholders, family and country stay safe and healthy. Remember, every small step towards a more transparent and counterfeit-free world makes a difference.
If you are wondering where to begin, get in touch with us today. We, at Acviss, protect over 2 billion products and 80+ brands globally. Our advanced anti-counterfeiting and brand protection solutions are always at your disposal. Reach out to us here to meet our experts and take your first step towards counterfeit-free market growth.
