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Secure Marking, Authentication, and Tracking & Tracing to Combat Illicit Trade

This article discusses the importance of secure marking, authentication, and tracking & tracing in combating illicit trade. It explores the solutions to problems such as smuggling, counterfeit products, and tax evasion through authentication and volume/tax verification. The regulatory response and requirements are also addressed, along with the need for interoperability and the lessons learned in implementing track and trace solutions.

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Secure Marking, Authentication, and Tracking & Tracing to Combat Illicit Trade

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  1. Secure marking, authentication and tracking & tracing to combat illicit trade • J Prodger • BAT Track and Trace Data Manager • 6th October 2014

  2. Who we are • Formal Association, registered in Zurich • Produce 75% of the world’s tobacco products (ex China) • Raise over US$150 billion in taxes annually Digital Tax Verification Drive for the adoption of standards (and approved solutions) to fight illicit trade in excisable products. Track & Trace Product Authentication

  3. Separate problems & Solutions PROBLEM Smuggling Counterfeit Tax Evasion SOLUTIONS Authentication Volume/Tax Verification Track & Trace • Regulatory Response: • EU Tobacco Products Directive • FCTC Illicit Trade Protocol

  4. Regulatory Requirements Stick Pack TPD Security Feature (Overt/Covert Authentication) FCTC Protocol Carton EU Cooperation Agreement TPD (Beyond 1st Customer) Master Case Pallet Manufacture On site warehouse Distribution Centre External Distributors/ Wholesalers Retail Outlet Consumer

  5. Tracking & Tracing 1st Customer . Production Internal Distribution Warehouse 2,etc. Warehouse1 Pack Outer Mastercase Pallet External Distribution T&T AIT Portal & Database 2nd Customer T&T regulatory Queries .

  6. Track & Trace Global Database Repository (SAP OER) Solution Integration Platform (SAP PI) The Need for Interoperabilty Data Centre Tracking ID Tracking ID Access Gateway ERP Tracing Information Tracing Information Customer Info MovilizerCloud Access Gateway SKU & EAN Events Events SAP Documnet Events XML Gateway Events SKU & EAN Events Factory BAT Warehouses 3rd Party Logistics Warehouses Factory Site System Events MES Events 3PL WMS Events Events Printers Case PackerLine System PalletisingLine System Manual Scanners Manual Scanners Manual Scanners Case Scanners Carton Scanners Pallet Scanners

  7. EPCIS Data capture CoveringManufacturing & Supply chain Events DCTA has implemented GS1 Identification Standards GLN SGTIN SSCC DCTA has implemented GS1 Data Carriers for Carton, Mastercase and Pallet DataMatrix GS1 128

  8. EPCIS Data capture for All Manufacturing & Supply chain Events DCTA has implemented EPCIS for interoperabilty across various partners, platforms and technology event data exchange. EPCIS 1.0 with Extensions for Master Data

  9. BAT Track and trace Deployment 7 Factories 170 Manufacturing Lines 83 Warehouses/Distribution Centres 5,000 Stock Keeping Units

  10. BAT Track and trace DeploymentSuccess based around GS1 standards To Date 60 Million EPCIS Event Messages 1.7 Billion Unique Tracking ID’s (SGTIN) Per Annum 32 Million EPCIS Event Messages 750 Million Unique Tracking ID’s Daily 110,000 EPCIS Event Messages 2.5 Million Unique Tracking ID’s

  11. Projected Volumes – Supported by Interoperabilty via EPCIS & StandarDs Per Annum 320 Million EPCIS Event Messages 7.6 Billion Unique Tracking ID’s (SGTIN) Daily 1.1 Million EPCIS Event Messages 25 Million Unique Tracking ID’s ALL information is sent to single Track and Trace repository by Factories and Warehouse by BAT, partners and Third Party Logistics as EPCIS messages

  12. Lessons Learned Implementing Track and Trace Solutions Requires • Time, resources, commitment and persistance • Significant investment • Business process change • Adoption of standards across your business and the industry as a whole ….. • A lot of data

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