What are the ways to tackle Counterfeit Products in Supply Chains?

Tackling counterfeits in supply chains is becoming an increasing concern for logistics firms with the boom in online purchases. Online purchasing and distribution of products have made the supply chains more susceptible to being infiltrated by counterfeits. For the same reason, ballooning infiltration of counterfeit products has led to €404 billion in transact in 2016, as per International Trademark Association. There are several reasons why it is becoming difficult for logistics companies to cope with these infiltrations.?

However, in this article, we will only focus on how logistics companies can tackle the problem of counterfeits in supply chains. We will take you through some processes and technologies that logistics firms can adapt to stop the infiltration, if not shut down the provenances.?

Ways to tackle Counterfeit Products in Supply Chains

The recent two years for logistics companies have dramatically changed the purchasing tropes. According to the International Chamber of Commerce (ICC) Intellectual Property Roadmap 2020, the pandemic substantially negatively affected the supply chain’s security.?

Therefore, logistics companies must take these stringent measures that do not let scale the already growing problem.?

1. Implementing Authentication Technologies

Authentication Technologies are the first thing that logistics companies should opt for. It is a robust way to prevent fake goods from entering the supply chains that relies on a track-and-trace system.

Some authentication methods include watermarks, unique identification numbers, or serial product identifiers which are only visible under verifying mechanisms such as UV light, unique paper stock coupled with microfibers, and micro text identifiers.?

Implementing and embedding such technologies in identifying products will help logistics companies verify the fakes and eradicate them from the supply chain.?

2. Providing User Verification Applications

A step further in the initiative to identify counterfeits will be giving the technology in the hands of a consumer.?

Sometimes, logistics officials cannot identify a product for its sheer resemblance with a genuine product. Therefore, a Mobile Verification Application will help consumers identify the product's authenticity if found to be suspicious.?

This technology can mainly help identify counterfeit medicines, as there are no significant warning signs to detect fake medicines.?

One such company is Pfizer, which implemented an authentication system where patients or recipients can pull off a sticker that reveals a unique code that they verify by online means or an SMS.

3. Distributed Ledger System?

Long past is the days when writing records in a centralised system was an effective method to maintain a record of the input and output in logistics firms.?

In a distributed ledger system, counterfeiters can't introduce counterfeits in transit of a product on the supply chain. It works on an un-erasable mark or an identifier assigned to a particular product that, once registered, cannot be altered throughout a product’s delivery journey.?

Any alteration will require the authorities to access the decentralised system to agree on making the change. Therefore, it leaves no room for counterfeiters to alter and infiltrate a product with an imitation.?

Ultimately, it provides an end-to-end physical and digital to move along the transit points, ensuring the product is genuine. Customers can also access this information for product assurance and quality information.?

4. Installing Counterfeit Detection Technologies

Logistics firms need a reliable offline technology far from the reach of counterfeiters, which can detect the parcels rolling through supply chains.

Particularly this technology will function on the data provided and gathered from brands and logistics companies, with the help of machine learning algorithms and image recognition mechanisms.?

This technology is easily scalable as it will have more data on counterfeit parcels. As a result, it will become more powerful in identifying counterfeits, thus allowing brands and logistics firms to eradicate counterfeits from the supply chain collectively.

5. Educating Staff to Identify Counterfeits

The logistics companies need a comprehensive solution to train the staff in anti-counterfeiting practices. This training will give the logistics firm additional strength in fighting counterfeits despite the technologies utilised.

The training should have the following structure -?

1. Spotting and Testing Counterfeit Products
2. Purchasing only from Trusted resources
3. Monitoring the flow of goods in the supply chain
4. Reporting any occurrence or infiltration of fake goods

Training the logistics staff is essential because the modern counterfeiters are capable enough of finding loopholes to fulfil their ultimate purpose — exploiting customers and generating money.

Therefore, the staff needs to verify, identify, and intercept fakes in tandem with the installed technologies to reduce any such incidents.

How tackling Counterfeits in supply chains is beneficial for Logistics firms?

Identifying and intercepting counterfeits in the supply chain is beneficial for logistics firms, as it will create sturdy and reliable relations with other stakeholders who are against counterfeiting.?

Other stakeholders like brands and customs who are already taking the hits of counterfeit products rolling inside the market will benefit from limiting the trade of counterfeits with the assistance of logistics companies.?

Finally, it will help build long-term relationships, helping in pushing the counterfeits and counterfeiters off the genuine shelves and market.?

Photo by Jake Nebov on Unsplash