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Mema Brand Protection Council Meeting TecIdentify Francois Augnet 13th November 08
© TRW Automotive Inc Mema Brand Protection Council Meeting 2 Why a Branch Solution? Facts and Figures 1 What is TecIdentify? Fully integrated solution 2 Benefits & Value Added Usage of code in daily business 3 Status & Future First Movers & The next steps 4 2
© TRW Automotive Inc Criminal Activities growing… Product piracy costs Global Automotive Parts Industry 5 – 10 € billion per year Source: OECD
© TRW Automotive Inc Spare parts – Threats! Counterfeit parts – including trademark-infringement Grey-market imports – including genuine parts diverted from one market to another without consent of brand owner Excess stock by authorised suppliers, including non-branded genuine parts sold directly from supplier to dealer without consent of brand owner Re-labelling – eg. Sales of used parts / reject parts ….and more! Source: OECD
© TRW Automotive Inc Spare parts counterfeiting facts Targeted products Fast moving products Standard parts sold off-the-shelf & which can be fitted to different models Parts with low per-unit costs as less likely to carry any security device Consequences Illegal Brand Image affected – disastrous long term effects Liability in case of accidents Lost revenues Eg. manufacturers 5% - 7% p.a Source: OECD
© TRW Automotive Inc Potential threats in Supply Chain ? ? Trusted supply chain Trusted supply chain Original manufacturer Distributor / Dealer Garage / End user Unknown source Distributor / Dealer Source: Vesdo
© TRW Automotive Inc Consequences - dealing with counterfeited products Personal (Emotional) Dealer is cheated as he pays for an original product & gets “junk” goods Liability Low quality product create quality claims Reputation Low quality products ruin the dealers reputation Business The dealer is in breach of his contract with the original parts manufacturer Legal Selling counterfeit products is prohibited Source: Vesdo
© TRW Automotive Inc Mema Brand Protection Council Meeting - TecIdentify 2 Why a Branch Solution? Facts and Figures 1 What is TecIdentify? Fully integrated solution 2 Benefits & Value Added Usage of code in daily business 3 Status & Future First Movers & The next steps 4 8
© TRW Automotive Inc TRW supports Industry Solution TecIdentify New CLEPA coding standard for authentication TRW Response to Counterfeiting Source: Vesdo
© TRW Automotive Inc Future Every item gets its own identity Anonymous mass of items (21)……. = 14 digits (01) digits …....free space GTIN Serialisation Source: Vesdo Ltd Today CLEPA Code – Basic Principles of Logical Security and Barcode Structure
© TRW Automotive Inc Product Folding boxBundle/ Display Shipping case Objective for pilot project Objective for pilot project For Track & Trace Extended security 11 combination with other security systems combination with other security systems Application of Clepa Code Source: Vesdo Ltd & Teccom
© TRW Automotive Inc TRW Label with CLEPA Code
© TRW Automotive Inc TecIdentify Version 1.2 Authentication Process 13 Clepa Code 13 TecIdentify Database Single Scans Online Mobile Multiple Scans Online Local
© TRW Automotive Inc TecIdentify Version 1.2 Scan, show results 14 TecCom Mobile TecIdentify Congratulations! This part is a genuine part from TecCom GmbH.  Impress Authentication: OK TecCom Mobile TecIdentify Warning! Unknown Code. This part part might not be an original part from TecCom GmbH.  Yes, I want to report this!  Impressum Authentication: Warning 14
© TRW Automotive Inc Feedback form TecCom Mobile TecIdentify Contact Form: Name: Phone: TecCom Mobile TecIdentify Yes, send the form! Barcode: (01) (10) (21)ABC123DEF45  Impress 15 TecIdentify Version 1.2 Feedback possible
© TRW Automotive Inc TecIdentify Version 1.2 Website scan 2. check 16
© TRW Automotive Inc TecIdentify Version 1.2 Response 17
© TRW Automotive Inc Open solution based on global standards (GS1,ISO..) Customs, importers, distributors, garages, car driver Worldwide 24/7 3.Answer within seconds 4.Low requirements Internet PC with scanner Mobile phone with camera and free to download reader software 5.Direct contact in case of a problem possible 6.Sophisticated algorithms on a secure database TecIdentify Features & Benefits 18
© TRW Automotive Inc Mema Brand Protection Council Meeting - Tecidentify 2 Why a Branch Solution? Facts and Figures 1 What is TecIdentify? Fully integrated solution 2 Benefits & Value Added Usage of code in daily business 3 Status & Future First Movers & The next steps 4 19
© TRW Automotive Inc Manufacturer Requirements & Benefits Requirements Pre-requisite for TRW to implement branch solution = Achieve Global Standard Label, Design & Printing Move from local sites doing local labeling to streamlined standards and processes for all aspects of product labels Benefits of Global Standard Label, Design & Printing Project Synergy – Standard processes & data integrity More efficient & effective Flexible – additions/deletions & immediate changes to labels worldwide Can implement branch solution using CLEPA code and Tecidentify!
© TRW Automotive Inc Possible Approach - Challenges & Benefits How to start ? By ProductNationalGlobal RequirementsLowMediumHigh Benefits of CLEPA code on label Protection of specific products Marketing messages etc. Security for a certain region or country Marketing messages etc. Global solution protecting all products & territories Synergy & Economies of scale Targetted marketing activities by using the code for messaging, promotions, part of loyalty program ChallengesIf product produced across multiple sites – adapt site processes or review need to standardise? Or cost to outsource the work but then lose some control Creating one process across the sites within one region Or cost to outsource the work but then lose some control Large workload to standardise processes, role definitions & resource allocation To find / create a global, user friendly software solution
© TRW Automotive Inc TRW Approach - Challenges & Benefits How to start ? By ProductNationalGlobal RequirementsStart with packed in house products Starting with 2 geographical regions in initial roll out Will roll out globally step by step Review current processes & resources for labeling activities Understand internal & external requirements Definition of future requirements & conceptual design with chosen software provider BenefitsGlobal web-based solution for TRW & suppliers / Controlled access for suppliers Protection of all products (Image, turnover etc.) Synergy, efficient streamlined processes for all labeling design & print activities (internal efficiencies), Single data source & storage for label information Marketing benefits - code can be used in daily business to eg. Send messages, announce promotions, link to a customer loyalty programme etc. ChallengesManaging IAM & VMS channels Large workload & rethinking of roles & resource allocation Large workload to standardise processes, complex to design & arrive at global user friendly software solution for TRW sites & suppliers
© TRW Automotive Inc The Clearing Hub - Architecture of an authentication system If each manufacturer is operating his own system: Business processes at the POS will be very complicated. Using a hub as unique certification authority in a given industry: Business processes at the POS will be simple & easy.
© TRW Automotive Inc Mema Brand Protection Council Meeting - Tecidentify 2 Why a Branch Solution? Facts and Figures 1 What is TecIdentify? Fully integrated solution 2 Benefits & Value Added Usage of code in daily business 3 Status & Future First Movers & The next steps 4 24
© TRW Automotive Inc Bosch 13 Contitech 2Continental Teves 14 ThyssenKrupp 3Federal Mogul 15 Knorr Bremse 4GKN 16 Osram 5Hella (2009) 6Mahle 7Mann + Hummel (2009) 8Schaeffler, LuK, INA Networking 9Tenneco ITG 10TRW Figiefa 11Wabco MEMA / JAPIA 12ZF-Trading Car Manufacturer First Movers project started project start open decision open 25
© TRW Automotive Inc Automechanika 2008 First Movers activities - Invitation with 2DMatrix - Presentation on the booths - Promotion using Clepa Code Joint PR activities with CLEPA & Messe Frankfurt TecIdentify won the Innovation award at Automechanika in IT category Automechanika Sept.2008 Source:Teccom
© TRW Automotive Inc Next steps Anticounterfeiting - Platform - conceptual Projects Security Concepts Uncovered Fakes Links CompanyCaseCountryContact Schaeffler Gruppe 5 container of clutches Czech- German Border Mario Thümmler TRWNingboAutomecha nika Frankfurt 2006 Karen Landis Contitech drive belts MaltaChristoph Stegemann … 1. TecIdentify Version 1.3: Enhancement of user interface Add new algorithms Enhancement of reports ....
© TRW Automotive Inc Encouraging garages etc. across all territories to use the solution! Equipment available? Ensuring this great solution is embedded in an internal process eg. what happens in YOUR COMPANY when a garage gets a warning message? Challenges for ALL companies!
© TRW Automotive Inc Q & A
1 MEMA Brand Protection Council November 13, 2008 Detroit, MI.
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