Automating Authentic Delivery’s Authentication
‘Prabhu mudrika meli mukh mahi, jaladhi laangh gaye achraj nahi’
In the epic story of Ramayana, Hanuman jumps across the Palk Strait waters in search of Goddess Sita, who was abducted by the wicked King Ravana.
After hours of search, Hanuman found her sitting under a tree at Ashoka Vatika. He transformed into a tiny ape and went near her to inform about Lord Rama’s mission. To prove his identity, he handed over Lord Rama’s ring to her. He also offered to take her back to Lord Ram, but Sita wanted to be freed respectfully and chose to wait for Rama’s arrival. Hanuman respectfully accepted Sita’s decision while taking her chooda mani (decorative hair-clip) as a token of identification for Lord Rama.
It was most prudent on part of Lord Ram to send his ring certifying that the bearer was indeed his true messenger, and no counterfeit like behrupia (impressionist) Ravana who had dressed as a sage, tricking Sita to step out of her safe haven.
In return, Sita wanted her beloved husband to be assured of her safety and sent along with Hanuman an authentication (POD) in the form of her hair-clip.
Here we are, many thousand years later, still perfecting & strengthening our processes to manage the menace of counterfeits and establishing POD shaped & forms that may be trusted by all stakeholders.
Digitization and automation have helped businesses make a leap jump (like Lord Hanuman) in this space. Let’s see what is in store for the uninitiated practitioners.
Managing the menace of counterfeits
The challenge on this front has grown manifold, especially after the advent of online retailing platforms. Third party suppliers could be any small-time players selling out of their garage as well. Online platforms provide the small retailers/ traders a market they otherwise had no access to.
Some of these suppliers manage to list and sell unlicensed & counterfeit products. Gullible customers would assume this product to be legitimate at the time of purchase, and upon a disappointing experience would give poor ratings and remarks on the platform. This affects the legitimate brand’s image poorly.
Counterfeit drugs and CPG items can cause serious damage to the health of consumers and legit company’s balance sheet too.
Companies could spend from their limited media budgets educating loyal and prospective customers on ways to identify a fake product. Some of the check-points for customers could be:
Further, legit companies are making special markings on the shopper packs and cartons. Such visible markings allow authentication of products at every stage along the supply chain (depots, distributors, wholesalers, retailers). Popular security features being used are holograms, colour shifting inks and guilloches.
Many hardened counterfeiters would perfect the duplicate and make counterfeit products, which most regular customers and even own company employees cannot tell apart.
The menace is such that you tether one unscrupulous vendor/ copier and another one pops up.
To strengthen the existing controls, a different approach needs to be adopted. Use of technology that is not easy to beat (read cheat). AI-led technology allows for the spotting of infringers through internet and image scanning.
Significant success (promise) is seen in the real-time interactive solutions. Shopper has to simply click a picture of the product using an app or mail picture to a given id. Company would revert within couple of minutes confirming if the product is indeed genuine. That is shopper delight and peace of mind.
The minute variations in artwork, hologram and on-line printed matter, which may be missed by a human-eye, are speedily verified by the AI engines.
Further, there are more benefits for the legit company:
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Progressing Onwards to Digital - POD
POD is the common thread between the shipper, consignee and carrier tying them unequivocally in a shared truth of right, complete and timely delivery certification.
As we say change is the only constant. The business landscape is fast-changing too:
a.?With e-com and B2B transactions increasing, there is a manifold increase in the number of deliveries
b.?The volume of PODs will only increase. This amounts to ever higher physical handling, storing, processing effort.
c.?Most customers are ahead on the digital journey and have initiated automation & digitization of their purchase related processes/documents
d.?There has been a pressing need to iron-out the issues in sharing (delivery) information across departments (Sales, SCM, Finance, Quality).
e.?Covid related safe-behaviour protocols also call for minimum touch, read “go paperless”
What does a Digital POD mean?
Essentially, the customer signs on carrier’s handheld device instead of a paper sheet (typically a LR or triplicate copy of invoice).
The digital POD, signed by customer thus captures:
The Digital POD further helps in internal processes.
~ Automated ASN (Advance shipment notice) can be sent (mail/sms) to customers. Digital POD can be auto-mailed/whatsapp to shipper, consignee and carrier immediately after delivery.
This reduces internal communication time and builds trust.
Do share your feedback below, and let me know which Supply Chain topic/issue you would like me to cover in future articles.
…?Let’s Unravel our Tessellations!
All views expressed in this article are my own and do not represent the opinions of any entity whatsoever with which I have been, am now, or will be affiliated.
Director, Finance and Procurement Transformation | Product Management | Agile Practitioner | Digital Strategy|
3 年Indeed very good read.... few additional points here which may be relevant (or may not be). while digital POD solves the problem of confirmation of delivery to the right person at a right time and location, but it may not entirely solve the problem of counterfeit. if a 3rd party supplier mimics the packaging and sells on platform, then the buyer can confirm they got the delivery but it can still be a counterfeit. If the barcode itself is copied (assuming packaging is exact replica of an original) then even if the customer sends the photo back to the real company; it may find it in their database to be authentic (based on image/serial number etc.). This can only be caught when other customers too receive the fake product and sends the same scanned image with same barcode. At that time too, the company may know there is a counterfeit but which one (1st or 2nd or both) will still be a challenge. With the advent of technology, I see a probably solution with blockchain where the authentic product is tracked at every stage of process and end customer can verify the authenticity. (every stage is the key, which tracks the movement of product from company to consumer, a counterfeit will not have previous record of source). I am not sure if you have thought of it but found unviable or planning to write on it. waiting for your future articles ... :)
Professor Marketing at International Management Institute
3 年Excellent read Very structured and relevant read for supply chain enthusiasts
Corporate Manager-Integrated Business at V-Trans (India) Ltd
3 年We do at V-Trans since long time
Global Supply Chain/ Insights and Analytics/ Project Management/ S&OP/ Demand Management/ Spend Management
3 年Nice storyboarding..