Haircare brand deploys Systech’s anti-diversion technology

Securing supply chain from product diversion risk

For representation purpose only. Pic courtesy - Amanda Harrington, justdial via internet

A global, fashion-forward manufacturer of haircare, cosmetics, and personal care products had a new prestige line scheduled to rollout in Spring 2018—all at a significant risk of diversion. The brand recognized the need for an anti-diversion strategy in its launch plan to secure the supply chain.

According to Systech, these high-value products were prime targets for diversion. Without a brand protection solution in place, the brand would be exposed to financial risks and diminished reputation if products leaked out to unauthorized distributors—ending up at brick-and-mortar and e-commerce retailers at reduced prices. It was time to implement a cost-effective solution before the rollout to authenticate individual products, prevent revenue loss, secure the supply chain, and maintain the integrity of validated results. These needs drove the brand’s decision to partner with Systech, the global leader in supply chain security and product authentication.

The US-headquartered Systech offers digital product authentication and traceability solutions to combat counterfeiting, prevent diversion, and meet regulatory compliance. Built on decades of experience as the leader in pharmaceutical serialization, our comprehensive brand protection suite claims to deliver real-time insight, actionable product data, digital connectivity, and consumer engagement functionality needed to fight supply chain threats. Global brands across industries rely on the company to keep their products authentic, safe, and connected—from manufacturing to the consumer’s hands.

Solution – Systech brand protection suite

The manufacturer deployed a combination of product authentication and track-and-trace solutions from the Systech brand protection suite. Systech provided the technology, tools and expertise to close vulnerability gaps in the supply chain and reduce product diversion.

Systech’s non-additive, real-time mobile authentication solution works with existing package barcodes and a simple smartphone app. Its patented technology analyzes the random micro-variances in native barcode printing to derive a unique digital signature—or eFingerprint— that enables product authentication and tracking from the individual item level to the case and pallet levels. The snapshot of the authentication workflow included the following:

  • Pallets of product manufactured by five CMOs were delivered to a distribution hub
  • Individual product bottles were set up in two quality-controlled, automated eFingerprint production lines integrated with Systech hardware
  • Existing barcodes were eFingerprinted
  • Authenticated bottles were re-packed, and carton labels generated
  • Orders were fulfilled and shipped globally

The case study claimed that the Systech solution reduces diversion incidents by enabling the brand to identify and document the potential source quickly. It’s covert, easy for supply-chain partners to validate, and affordable to implement and scale.

Results – Secure supply chain from product diversion risk

Systech delivered the ability to authenticate and track products at the individual item level and leverage aggregation to move a case or an entire pallet of items with one scan. This enabled the brand to secure its supply chain, mitigate product diversion risk, and protect its revenue. Systech’s support team worked closely with the manufacturer to ensure a successful implementation. Since the rollout began, they have — increased product throughput over 500,000 unique eFingerprints, and improved risk management and control through centralized authentication.

The brand’s successful deployment of this anti-diversion solution translates to a competitive advantage built on resilient brand protection and a secured supply chain.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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– Naresh Khanna

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