ENABLING TRUSTED

TRADE TROUGH

‘SECURE’ TRACK

AND TRACE

Tom Doyle

Chief Commercial Officer

May 2014

© 2014, SICPA Asia Development Pte. Ltd., Singapore

Confidential 2

AGENDA

I. What is the evolution of Track and Trace?

II. What are the drivers for ‘Secure’ Track and Trace?

III. How does ‘Secure’ Track and Trace enable ‘Trusted Trade’?

IV. What will the future hold for ‘Secure’ Track and Trace?

V. What technology options exist and what are the limitations?

VI. How should governments and regulatory agencies respond?

VII. SICPA as a Trusted Partner

© SICPA Government Security Solutions – May 2014 - Confidential - n° 3

Track and Trace Definition

Tracking

─ Concept of marking products so that can be monitored from the point of production up to the customer including each step of the process

Building a time and location history for every item

Tracing

─ Concept of being able to intercept and identify products and verify their route back to their origin

Retrieving specifc products’ time and location history

‘Secure’ Tracking and Tracing

─ Is based on 4 essential pillars (secure marking of legitimate production, distribution chain tracking functionalities, auditing and authentication tools and business intelligence)

© SICPA Government Security Solutions – May 2014 - Confidential - n° 4

PRODUCTS AUTHENTICATION / TRACEABILITY HISTORY (EXTRACT)

2014

LA

W /

DIR

EC

TIV

E

GO

VE

RN

ME

NT

PR

OG

RA

MM

E

EU Falsified

Medicine Directive

2011/62/EU

US Consumer

Products Safety

Improvement Act 2008

US FDA e-

Pedigree

2006

California e-

Pedigree

2008

US FDA Drug

Quality &

Security Act

2013

EU Toys Safety

Directive

2009/48/EC

EU General

Food Law

EC/178/2002

(art. 18)

EPCIS

2007

California

2005

Turkey

2007

Brazil

Tobacco

2008

Canada

2008

Brazil

Beverages

2009

Kenya

2013

IND

US

-T

RY

Tobacco

2010

2014

FedEx

1994 GS1

2005

Albania

2011

Georgia

2012

Morocco

2010

Malaysia

2004

© 2014, SICPA Asia Development Pte. Ltd., Singapore

Confidential 5

MAIN DRIVERS FOR ‘SECURE’ TRACK & TRACE

Counterfeit products damage consumer health

Tax fraud due to under-declaration of production

Smuggling avoids controls &

taxes, and fuels organised crime

Lack of data & evidence hinders law enforcement and prosecutions

© 2014, SICPA Asia Development Pte. Ltd., Singapore

Confidential 6

TRUSTED TRADE REQUIRES ‘SECURE’ TRACK & TRACE

© SICPA Government Security Solutions – May 2014 - Confidential - n° 7

2014

2020

THE FUTURE FOR ‘SECURE’ TRACK AND TRACE?

I. Provide a Standard

Platform for Tracking

and Tracing

II. Enhance Government’s

Compliance &

Enforcement Efforts

III. Enable Authentication

& Traceability

IV. Create a Foundation

for Trusted Trade

Collaboration

Manufacturer Distributor Retailer Customer Suppliers Producers

Farms, Crops,

Fertilizers,

Commodities

Preparations,

Mixes, Components

Items, Medicines,

Cigarettes, Bottles

Containers, Pallets,

Packs, Cartons

Stock Keeping

Unit (SKU)

Consumption,

Usage

Exa

mp

le

Ope

rato

r

© SICPA Government Security Solutions – May 2014 - Confidential - n° 8

A FUREPROOF MODEL FOR ‘SECURE’ TRACK & TRACE

Distribution Chain Monitoring

Independent Production Control

Unique Serial Coding

Material Based

Security

Compliance

Management

Business Intelligence & Reporting

EPCIS Compliant Repository

Global Focal Point

Material-based security remains core to product authentication that is

fundamental to any credible Track & Trace solution

© SICPA Government Security Solutions – May 2014 - Confidential - n° 9

TECHNOLOGY OPTIONS AND THE LIMITATIONS

ADVANTAGES DISADVANTAGES

INDUSTRY

• Acceptance by impacted industry

• Low setup cost

• Tailor made for industry process

existing processes

• Not Independent

• Insider knowledge on the system

• Limited security as design is limited to

industry

• May benefit directly from mis-

declaration

• Proven actor of illicit trade

INDEPENDENT

SOLUTION

PROVIDERS

• No conflict of interest - Trustworthy

• Proven credentials that work

• Proprietary components offer

additional security

• Resistance from certain industries

• Exclusive security features

• Additional costs

STANDARD

ORGANISATIONS

• No conflict of interest - Non-profit

organisations

• Promotes interoperability

• Traditionally promotes guidelines and

methods only

• Experts for part of solution only

• Have limited implementation capacity

SYSTEM

INTEGRATORS

• Implementation capacity

• Solution adaptability

• Not core business as specialisation

required is out of normal scope

• Limited product industrialisation

capacity

© SICPA Government Security Solutions – May 2014 - Confidential - n° 10

HOW SHOULD GOVERNMENTS AND REGULATORY

AGENCIES RESPOND

1. STRATEGY, VISION and LEADERSHIP

2. DIAGNOSTIC OF PROBLEM

STATEMENT and CAPABILITIES

REQUIRED TO ADRESS IT

3. BUSINESS CASE and

GOVERNANCE MODEL

4. PROCUREMENT and

IMPLEMENTATION

Co

lla

bo

rati

on

R

etu

rn o

n C

olla

bo

rati

on

Inve

stm

en

t

Enhanced

Citizen

Protection

Improved

Fiscal

Sustainability

Vision &

Trusted

Collaboration

RO

I

Engaging Partnership

© SICPA Government Security Solutions – May 2014 - Confidential - n° 11

SICPA AS A TRUSTED PARTNER

Founded in

1927

30 countries

77 billion unique marks

annually

3’000 employees

Enabling Trust