AntiCounterfeiting: Industry and Customs Collaboration

1
Anti-Counterfeiting Industry and Customs
Collaboration

• Nick Small
• January 17, 2007

2
Agenda

• Introduction
• Supply Chain Visibility
• Strategic Drivers for Customs
• Benefits of Collaboration
• A Structured Approach
• QA

3
About Unisys

• 6B revenue, 36,000 employees, 100 plus
  countries, 80 percent services, 20 percent
  technology
• 500 plus top executives from the Big 5 and
  acquisitions of consulting firms have rounded out
  our world-class talent
• End-to-end solution enabled by 3D Blueprinting
  brings together our entire portfolio of
  competencies
• Dedicated practices in Life Sciences,
  Transportation, Retail and Customs Modernization
• World-class Supply Chain Management and Track and
  Trace experience
• Global Infrastructure Capability

4
About Unisys

• Supply Chain Security Solutions enable private
  and public sector organizations to
• Track, trace, and secure materials, finished
  goods, and people across the value chain
• Identify location and condition of assets, at all
  times and in what condition on land, at sea,
  and in the air
• Link investments in RFID, security, and mandate
  compliance to core business objectives
• Protect brands, products, customers, and
  shareholder value

5
Unisys Supply Chain Security Solutions
6
Anti-Counterfeiting Strategies

• Chain of Custody
• Follow the commercial and physical ownership of
  the product throughout its lifecycle to prevent
  unauthorized intrusions
• Electronic Pedigree
• Provide a history or genealogy of a product to
  allow fast and efficient research in the event of
  a consumer facing issue
• Mass Serialization
• Establish monitoring capabilities down to the
  individual unit level for very granular control
  and distribution visibility

A common focus of creating VISIBILITY in the
Pharmaceutical Supply Chain
7
What is Visibility? - The Six Senses of Visibility

• Location Where, exactly, is the product at all
  times?
• Specificity What is the product exactly? What
  is its color, size, expiration date, etc.?
• 3. State Has the product been in the proper
  environment? Is it in a safe/good condition?
• Compliance Have all relevant regulatory, trade,
  and documentation requirements been met?
• Integrity Has the product been breached or
  compromised in any way?
• 6. Authenticity Is this exactly the product it
  is supposed to be?

8
Traditional Supply Chain Visibility
Goods
9
Traditional Supply Chain Visibility
Goods
Customs
10
Enabled Supply Chain Visibility
1st Mile
Last Mile
Port of Departure
Port of Arrival
Supplier
Distribution Center
Distribution Center
Goods
Customs
Active RFID reading state sensing
Active RFID reading state sensing
Passive RFID tagging reading
Active RFID reading state sensing
de-associate Passive RFID reading
Active RFID tagging reading association
w/passive tags
11
Enabled Supply Chain Visibility
1st Mile
Last Mile
Port of Departure
Port of Arrival
Supplier
Distribution Center
Distribution Center
Goods
Customs
Active RFID reading state sensing
Active RFID reading state sensing
Passive RFID tagging reading
Active RFID reading state sensing
de-associate Passive RFID reading
Active RFID tagging reading association
w/passive tags
12
Enabled Supply Chain Visibility
1st Mile
Last Mile
Port of Departure
Port of Arrival
Supplier
Distribution Center
Distribution Center
Goods
Customs
Active RFID reading state sensing
Active RFID reading state sensing
Passive RFID tagging reading
Active RFID reading state sensing
de-associate Passive RFID reading
Active RFID tagging reading association
w/passive tags
13
Enabled Supply Chain Visibility
1st Mile
Last Mile
Port of Departure
Port of Arrival
Supplier
Distribution Center
Distribution Center
Goods
Customs
Active RFID reading state sensing
Active RFID reading state sensing
Passive RFID tagging reading
Active RFID reading state sensing
de-associate Passive RFID reading
Active RFID tagging reading association
w/passive tags
14
Enabled Supply Chain Visibility
1st Mile
Last Mile
Port of Departure
Port of Arrival
Supplier
Distribution Center
Distribution Center
Goods
Customs
Active RFID reading state sensing
Active RFID reading state sensing
Passive RFID tagging reading
Active RFID reading state sensing
de-associate Passive RFID reading
Active RFID tagging reading association
w/passive tags
15
Enabled Supply Chain Visibility
1st Mile
Last Mile
Port of Departure
Port of Arrival
Supplier
Distribution Center
Distribution Center
Goods
Customs
Active RFID reading state sensing
Passive RFID tagging reading
Active RFID reading state sensing
de-associate Passive RFID reading
Active RFID tagging reading association
w/passive tags

• Visibility Location
• State Security
• Reliability
• Productivity

• Authenticity
• Specificity
• Productivity

16
Alignment of Customs and Industry Strategic
Drivers
High
Authenticity
Compliance
Authenticity
Compliance
Strategic Importance of the Six Senses of
Visibility
Integrity
Integrity
Specificity
Specificity
Location
State
State
Location
Low
Pharmaceuticals
Customs
17
Opportunities for Customs and Industry Cooperation

• As robust Supply Chain Security solutions are
  implemented there are a number of reasons for
  Industry and Customs to collaborate
• Improved detection of counterfeits
• Accelerated clearance for organizations with
  enhanced Supply Chain Security procedures and
  solutions
• Advanced targeting capabilities

18
Adoption Curve and Timing of Collaboration
Now is the time for collaboration to ensure
strategic alignment
HLS Track Trace Volume
RFID Equilibrium
Tipping Point 2
Electronic Pedigree Widespread Requirements
Tipping Point 1
..
2010
2009
2007
2008
Inside the Planning Horizon
Outside the Planning Horizon
19
Collaboration A Structured Approach
Enabling collaboration requires the development
of procedures and solutions that deliver value to
all participants
Business Vision and Strategy Layer Models to
capture the strategic objectives for the solution
BUSINESS ARCHITECTURE
Business Process LayerModels to capture
high-level operational requirements to support
objectives
Application Layer Models to
capture key design and architecture requirements
SERVICES-BASED TECHNICAL ARCHITECTURE
Infrastructure LayerManaged services and
distributed network infrastructure required to
support applications and operations
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Structured Approach Aligned Business Process
Models
Process workflows, metrics and models based on
specific scenarios and covering intersect points
Counterfeiting Scenarios
Track and Trace Process Workflow
21
Structured Approach Integrated Applications
Architecture
22
Structured Approach Proven to Deliver

• 20 plus successful track-and-trace pilots and
  implementations completed
• 10 plus years as prime integrator and managed
  services provider for worlds largest
  RFID-enabled network (U.S. Department of Defense)
  handling 25,000 containers per day in 25 plus
  countries
• Dedicated teams of industry, process, and
  functional experts

• Extensive expertise and resources life sciences
  and Customs solutions
• Real-world experience in challenging environments
  
• Active member of EPC global and participants in
  establishing data and process standards

23
Summary

• Customs and Industry have shared goals with
  regard to anti-counterfeiting protect the
  patient, secure the supply chain
• Customs and Industry also share strategic drivers
  regarding supply chain visibility
• Emerging solutions provide the basis for enhanced
  collaboration between Customs and Industry
• A key success area for policy makers is to
  minimize unintended consequences that impact
  quality and/or cost of business operations

24
Thank You
25
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