enabling trusted trade trough
TRANSCRIPT
ENABLING TRUSTED
TRADE TROUGH
‘SECURE’ TRACK
AND TRACE
Tom Doyle
Chief Commercial Officer
May 2014
© 2014, SICPA Asia Development Pte. Ltd., Singapore
Confidential 2
AGENDA
I. What is the evolution of Track and Trace?
II. What are the drivers for ‘Secure’ Track and Trace?
III. How does ‘Secure’ Track and Trace enable ‘Trusted Trade’?
IV. What will the future hold for ‘Secure’ Track and Trace?
V. What technology options exist and what are the limitations?
VI. How should governments and regulatory agencies respond?
VII. SICPA as a Trusted Partner
© SICPA Government Security Solutions – May 2014 - Confidential - n° 3
Track and Trace Definition
Tracking
─ Concept of marking products so that can be monitored from the point of production up to the customer including each step of the process
Building a time and location history for every item
Tracing
─ Concept of being able to intercept and identify products and verify their route back to their origin
Retrieving specifc products’ time and location history
‘Secure’ Tracking and Tracing
─ Is based on 4 essential pillars (secure marking of legitimate production, distribution chain tracking functionalities, auditing and authentication tools and business intelligence)
© SICPA Government Security Solutions – May 2014 - Confidential - n° 4
PRODUCTS AUTHENTICATION / TRACEABILITY HISTORY (EXTRACT)
2014
LA
W /
DIR
EC
TIV
E
GO
VE
RN
ME
NT
PR
OG
RA
MM
E
EU Falsified
Medicine Directive
2011/62/EU
US Consumer
Products Safety
Improvement Act 2008
US FDA e-
Pedigree
2006
California e-
Pedigree
2008
US FDA Drug
Quality &
Security Act
2013
EU Toys Safety
Directive
2009/48/EC
EU General
Food Law
EC/178/2002
(art. 18)
EPCIS
2007
California
2005
Turkey
2007
Brazil
Tobacco
2008
Canada
2008
Brazil
Beverages
2009
Kenya
2013
IND
US
-T
RY
Tobacco
2010
2014
FedEx
1994 GS1
2005
Albania
2011
Georgia
2012
Morocco
2010
Malaysia
2004
© 2014, SICPA Asia Development Pte. Ltd., Singapore
Confidential 5
MAIN DRIVERS FOR ‘SECURE’ TRACK & TRACE
Counterfeit products damage consumer health
Tax fraud due to under-declaration of production
Smuggling avoids controls &
taxes, and fuels organised crime
Lack of data & evidence hinders law enforcement and prosecutions
© 2014, SICPA Asia Development Pte. Ltd., Singapore
Confidential 6
TRUSTED TRADE REQUIRES ‘SECURE’ TRACK & TRACE
© SICPA Government Security Solutions – May 2014 - Confidential - n° 7
2014
2020
THE FUTURE FOR ‘SECURE’ TRACK AND TRACE?
I. Provide a Standard
Platform for Tracking
and Tracing
II. Enhance Government’s
Compliance &
Enforcement Efforts
III. Enable Authentication
& Traceability
IV. Create a Foundation
for Trusted Trade
Collaboration
Manufacturer Distributor Retailer Customer Suppliers Producers
Farms, Crops,
Fertilizers,
Commodities
Preparations,
Mixes, Components
Items, Medicines,
Cigarettes, Bottles
Containers, Pallets,
Packs, Cartons
Stock Keeping
Unit (SKU)
Consumption,
Usage
Exa
mp
le
Ope
rato
r
© SICPA Government Security Solutions – May 2014 - Confidential - n° 8
A FUREPROOF MODEL FOR ‘SECURE’ TRACK & TRACE
Distribution Chain Monitoring
Independent Production Control
Unique Serial Coding
Material Based
Security
Compliance
Management
Business Intelligence & Reporting
EPCIS Compliant Repository
Global Focal Point
Material-based security remains core to product authentication that is
fundamental to any credible Track & Trace solution
© SICPA Government Security Solutions – May 2014 - Confidential - n° 9
TECHNOLOGY OPTIONS AND THE LIMITATIONS
ADVANTAGES DISADVANTAGES
INDUSTRY
• Acceptance by impacted industry
• Low setup cost
• Tailor made for industry process
existing processes
• Not Independent
• Insider knowledge on the system
• Limited security as design is limited to
industry
• May benefit directly from mis-
declaration
• Proven actor of illicit trade
INDEPENDENT
SOLUTION
PROVIDERS
• No conflict of interest - Trustworthy
• Proven credentials that work
• Proprietary components offer
additional security
• Resistance from certain industries
• Exclusive security features
• Additional costs
STANDARD
ORGANISATIONS
• No conflict of interest - Non-profit
organisations
• Promotes interoperability
• Traditionally promotes guidelines and
methods only
• Experts for part of solution only
• Have limited implementation capacity
SYSTEM
INTEGRATORS
• Implementation capacity
• Solution adaptability
• Not core business as specialisation
required is out of normal scope
• Limited product industrialisation
capacity
© SICPA Government Security Solutions – May 2014 - Confidential - n° 10
HOW SHOULD GOVERNMENTS AND REGULATORY
AGENCIES RESPOND
1. STRATEGY, VISION and LEADERSHIP
2. DIAGNOSTIC OF PROBLEM
STATEMENT and CAPABILITIES
REQUIRED TO ADRESS IT
3. BUSINESS CASE and
GOVERNANCE MODEL
4. PROCUREMENT and
IMPLEMENTATION
Co
lla
bo
rati
on
R
etu
rn o
n C
olla
bo
rati
on
Inve
stm
en
t
Enhanced
Citizen
Protection
Improved
Fiscal
Sustainability
Vision &
Trusted
Collaboration
RO
I
Engaging Partnership
© SICPA Government Security Solutions – May 2014 - Confidential - n° 11
SICPA AS A TRUSTED PARTNER
Founded in
1927
30 countries
77 billion unique marks
annually
3’000 employees
Enabling Trust