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Product Labeling … a Tool for Managing Supply Chain Visibility Paul Chamandy Prepared For: AAFA Knock It Off! Brands & the Counterfeiting Quandary November.

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Presentation on theme: "Product Labeling … a Tool for Managing Supply Chain Visibility Paul Chamandy Prepared For: AAFA Knock It Off! Brands & the Counterfeiting Quandary November."— Presentation transcript:

1 Product Labeling … a Tool for Managing Supply Chain Visibility Paul Chamandy Prepared For: AAFA Knock It Off! Brands & the Counterfeiting Quandary November 11, 2008

2 Information and Brand Management Division Why Brand Owners Should Contemplate a Brand Protection Strategy Manufacturing has moved from domestic owned & operated factories to full package offshore contractors resulting in potential loss of control over your intellectual property Changes in brands trim sourcing model have resulted in the qualification of additional suppliers Brands have attempted to cut their inventory liabilities by allowing contractors to place orders directly with suppliers and thus reducing visibility over contractor activities. Multiple sourcing strategies have created subtle inconsistencies in the trim & packaging products What does this mean to a brand as they try to police and protect their Intellectual Property Rights? The Changing Market Dynamics

3 Information and Brand Management Division Avery Dennison offers a comprehensive set of labeling solutions that allow the brand to monitor and protect their assets as they travel through the global supply chain. We are strategically positioned to serve the apparel and retail markets wherever their goods are sourced. Our secure, global manufacturing capabilities allow us to supply labeling with the highest degree of consistency, while seamlessly integrating security technology into the RBOs existing branding program. By combining anti-counterfeit labeling solutions with our web-based track & trace applications, Avery Dennison can deliver unprecedented control, visibility, and access to information globally. Global Scale, Presence & Resources to Best Serve the Market Avery Dennison now operates in over 40 countries including all the major apparel & footwear sourcing locations

4 Information and Brand Management Division Diverted by a Legitimate Customer AccumulationDumping Examination of the product quality Validation of the brand security features Maintenance of tighter control over sundries Better monitoring of production activities Monitoring account sales activity Tracking through unique ID or special markings If product is uniquely identified then the approximate location of accumulator can be identified Age of product/packaging can be a determining factor Over-Production by a Vendor Validating Authenticity of the Product Authentic Gray Market Counterfeit ? ? Copy of Design & Packaging

5 Information and Brand Management Division Brand Protection Solutions dont have to be expensive or disruptive to the business process. Avery Dennison typically collaborates with the brand to develop a comprehensive anti-counterfeiting program. We are constantly evaluating new security technologies to deliver the latest in innovative anti-counterfeit labeling solutions. Having extensive expertise in the apparel & footwear industry uniquely positions us to deliver individualized brand protection programs built around: –Production requirements (washability, fade resistance, abrasion & environmental stability) –Cost-effective integration over a wide range of core ID products –Ease and practicality of detection –Multi-tiered security options –The ability to deliver the solution in the most efficient manner based on the business need Authentication Brand Protection Solutions for Every Budget and Objective

6 Information and Brand Management Division Criteria for Evaluating & Selecting a Security Technology Authentication Technologies

7 Information and Brand Management Division Product Security Portfolio Delivering a Range of Security Options Across All Product Categories Micro-Printing Holograms Special Security Threads Infrared Luminescent Inks & Yarns UV Florescent Covert Security Inks Color Shift Inks XMARK Covert Security Ink Sequential Numbering - Woven & Printed Printed & Demetalized Security Threads Verification Service & Training Tracking & Verification Tools

8 Information and Brand Management Division Real or Fake? Diverted by a Legitimate Customer AccumulationDumping Maintenance of tighter control over sundries Better monitoring of production activities Monitoring account sales activity Tracking through unique ID or special markings If product is uniquely identified then the approximate location of accumulator can be identified Age of product/packaging can be a determining factor Over-Production by a Vendor Authentic Gray Market Counterfeit Copy of Design & Packaging Counterfeit Examination of the product quality Validation of the brand security features Copy of Design & Packaging

9 Information and Brand Management Division Capturing Unique Identification Through the Supply Chain

10 Information and Brand Management Division Item Level Bar Coding - An Interim Step

11 Information and Brand Management Division Item Level RFID - The Holy Grail Radio Frequency Identification offers the ability to seamlessly capture unique item level information at the point of distribution. Although it is perceived as costly, it offers measurable business value throughout the supply chain.

12 Information and Brand Management Division Accumulation Product Labeling as a Tool to Help Manage Supply Chain Visibility Monitoring account sales activity Tracking through unique ID or special markings Works best when it involves direct shipment from the factory Diverted by a Legitimate Customer AccumulationDumping Maintenance of tighter control over sundries Better monitoring of production activities If product is uniquely identified then the approximate location of accumulator can be identified Age of product/packaging can be a determining factor Over-Production by a Vendor Authentic Gray Market Counterfeit Copy of Design & Packaging Counterfeit Examination of the product quality Validation of the brand security features Copy of Design & Packaging

13 Information and Brand Management Division Averys Web Solutions Help Provide Visibility to the Brand On-line solutions for tracking and tracing labels back to their source –Allows the brand to capture and store data about label production –Enables tracking of items through the supply chain with on-demand reports regarding orders and shipments –Improves stock control by monitoring material usage –Helps ease product identification and authentication by field investigators –Verifies specifications of authentic items including details as to the origin of products - this can be used by brand owners and enforcement officials. –Information is accessible 24/7 via a secure internet connection –Cost effective and easy to implement

14 Information and Brand Management Division The unique ID or license plate for each garment and links to a database containing particulars such as the vendor, PO#, production location, run size, mfg. date, fabric lot # and any other information that would be useful to the brand in tracking the pedigree of each item they procure. It further allow the brand to monitor production coming out of each authorized factory The unique # could further help the brand in complying to the impending HR 4040 CPSC Legislation recently passed into law Unique Serialization of the Core Product Labeling CPS# BRSCD9LC00154 The visible ID# can be used to access information about the product on the web based using the data captured in the Avery Dennison database A duplicate ID# could be buried in the seam should the consumer (or diverter remove the label after purchase

15 Information and Brand Management Division D2Comm compiles data from a brands various data sources (CONTRACT Info) RBO Data Feed To AD RBO Data Feed To AD (SKU) (PO) D2Comm In-Plant Printing In-Plant Printing Service Bureau Service Bureau Vendor Data Input Vendor Data Input Any data provided by a brand or their vendor can be tied back to the unique ID# printed on the label. Managing Data Through D2Comm

16 Information and Brand Management Division When factories log in to download print jobs or place label orders to be delivered by AD Service Bureaus, D2Comm collects data. The Data can include anything that the RBO initially downloads to AD and it does not have to just be information that is physically printed on the labels. The vendor can append the data file prior to printing with time sensitive information that may not be something the RBO holds in their files (i.e fabric lot # or actual mfg. date or any other information as required by the RBO to ensure compliance with CPSC guidelines or their own internal tracking needs The logged file contains all printing activity tied to a particular vendor Customized reports and analysis come from this data as required by RBO Date, time, quantity, machine etc. for each batch of data printed TheRBO,D2comm, Care Label,7/8x2.0,08/19/2008, 22:44:43, 500, (300DPI),2,220,BRSCD9LC,236,n, ,CCS-100,MADE IN CHINA, 3T,UPC ,Lot14721,Line23,Fab8942-BL07 TheRBO,D2comm, Care Label,7/8x2.0,08/19/2008, 22:46:13, 500, (300DPI),2,110,BRSCD9LD,120,n, ,CCS-100,MADE IN CHINA, 4T,UPC ,Lot14721,Line23,Fab8942-BL07 TheRBO,D2comm, Care Label,7/8x2.0,08/19/2008, 22:47:21, 500, (300DPI),2,360,BRSCD9LF,380,n, ,CCS-100,MADE IN CHINA, 6T,UPC ,Lot14721,Line23,Fab8942-BL07 TheRBO,D2comm, Care Label,7/8x2.0,08/19/2008, 22:44:43, 500, (300DPI),2,220,BRSCD9LC,220,n, ,CCS-100,MADE IN CHINA, 2T,UPC ,Lot19721,Line18,Fab7842-GR01 TheRBO,D2comm, Care Label,7/8x2.0,08/19/2008, 23:21:43, 500, (300DPI),2,360,BRSCD9MD,400,n, ,CCS-100,MADE IN CHINA, 3T,UPC ,Lot19721,Line18,Fab7842-GR-01 TheRBO,D2comm, Care Label,7/8x2.0,08/19/2008, 23:22 :12, 500, (300DPI),2,180,BRSCD9MF,220,n, ,CCS-100,MADE IN CHINA, 4T,UPC ,Lot19721,Line18,Fab7842-GR-01 Complete label data is archived by Avery Dennison for easy access by the brand How it Works

17 Information and Brand Management Division Accessing Product Information Via the Web Information retrieved from the database enables identification of the: the print location production date/time production volume evidence of over production other customer specified data that is not printed on the label but valuable in helping to track the pedigree of the product Ramatex _11491.gol Ramatex2 TheRBOAZB_IP_LABEL_PRINT1_AP BRSCD9LC TheRBO_Tops 7/8x :44:43 500, (300DPI) SCCS-100 MADE IN CHINA 5 UPC Lot14721 Line23 Fab8942-BL Log file: Username: Site: PCID: Tag Security ID: Format Set:: Label Size: Log Date: Printer: Comm: Order Qty: Download Qty: Batch ID: Style No.: Item No.: Origin: Size: UPC Number: Customer P.O. #: Lot No: Production Line: Fabric ID: Mfg Date: Summary - PCMate Platinum Online Log The 13 Digit ID# code is entered from the care label Serial# BRSCD9LC Characters LookupBack Web based with secure log-in by a Brands IP users Brand Owner

18 Information and Brand Management Division The unique ID# number can offer multiple benefits to Brand Owners For monitoring factory label production –Monthly Audit reports to compare what was requested to what was ordered or printed. –Exception reporting (i.e.over production) Supplies usage reports –Identifying and monitoring factory supplies usage (for in-plant applications) Label authentication and pedigree –Identifying the manufacturing source –Providing pedigree information easily accessible over the web –Capturing data that can be used as a foundation for developing a product specific consumer facing website –Using the ID# to selectively identify and recall products in the event of quality issues Supply Chain Visibility

19 Information and Brand Management Division Label solutions offer the most cost effective tool to assist IP enforcement in the detection of counterfeits and identification of diverted products Through data tracking tools, labels can provide production visibility as it relates to label usage, potential overproduction or factory leakage. They can be delivered through global service bureaus or with the proper controls - in-house printing can offer greater flexibility to meet quick turnaround requirements. A well thought out and implemented program can result in decline in products showing up in the grey markets as well as increasing your confidence relating to IP enforcement activities In Summary

20 Information and Brand Management Division Thank You Paul Chamandy Vice President of New Business Development Avery Dennison Information and Brand Management Division 1 Wilcox Street Sayre, PA USA Ph. (570) Ext Fax (570) Mobile (607)

21 Information and Brand Management Division


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