Medical Plastics News talks to Sreedhar Patnal, general manager at Systech about tracking counterfeit epidemics plaguing the medical industry.
Systech
1. How can we prevent counterfeiting?
Counterfeiting is a global issue that affects virtually every industry, with no organisation unsusceptible to the damage it can cause. The international trade in counterfeit and pirated goods accounted for an estimated 2.5% of world trade in 2019, while fake products made up 5.8% of all European Union imports - figures which will surely rise in the years to come. Counterfeit goods not only affect all stages of the supply chain, from manufacturers to consumers, but they also damage brand credibility and customer loyalty, divert sales and cause revenue loss.
To overcome the counterfeit challenges currently plaguing several industries, including the medical sector, organisations should utilise track-and-trace technology. It enables firms to follow a product’s journey throughout the supply chain.
Companies ought to consider using next-generation solutions powered by the latest technological advancements to thwart counterfeit goods - namely smart vision systems, digital fingerprinting and artificial intelligence (AI).
2. How are Systech trying to combat this?
At Systech, we provide digital traceability and serialisation solutions that establish essential product data, ensure digital connectivity and enable real-time insights - on the packaging line and throughout the supply chain.
We offer several solutions designed to combat the counterfeit epidemic. Firstly, our serialisation solutions enable brands to assign unique identifiers to each product. This approach allows for real-time tracking and monitoring, making it challenging for diverted products to go unnoticed. Serialisation allows you to provide a unique way of identifying individual products.
Secondly, with our track and trace capabilities, manufacturers can monitor the movement of their products throughout the supply chain, helping users to identify and address fake products. Traceability offers greater visibility into the product journey—from manufacturer to consumer—and assists with product recalls.
Finally, we provide non-replicable, non-additive, covert digital product authentication solutions through our brand protection portfolio via digital e-Fingerprint and AI-based technologies. These work with existing 1D and 2D barcodes and packaging to deliver immediate counterfeit detection. With an easy-to-use smartphone app, brands and their trading partners can instantly verify product authenticity—anywhere in the supply chain.
We recommend a programmatic approach to tackling counterfeiting rather than solely relying on a single solution. A blend of individuals, procedures, technology and time can ensure consumer safety and loyalty and safeguard brands and revenues.
3. How has e-commerce led to an uptick in counterfeit goods?
The uptick in e-commerce has powered the counterfeiting surge. In the pharmaceutical industry, doing business with online pharmacies can lead to fraudulent activity. For example, a customer in the UK buying online from what appears to be a French pharmacy may, in reality, be receiving a counterfeit, mislabelled, or expired product from a completely different region.
With people’s willingness to buy goods online having increased exponentially, an ever-growing number are open to taking more risks to secure a good deal for themselves.
4. What is the scale of counterfeiting medical devices globally?
In the medical device sector, counterfeit healthcare products are among the most frequently seized commodities by border control forces. According to the WHO, one in 10 medical products in developing countries is substandard or falsified. Measures such as the EU Medical Device Regulation (EU MDR) and the Global Unique Device Identification Database (GUDID) have been established to regulate medical devices.
5. What advice would you give to companies in order to avoid counterfeit products?
It is critical for companies to adopt a multifaceted approach rather than rely on a single solution to address the problem of counterfeit and diverted products. This requires applying different tools. For instance, serialising products for tracking purposes is imperative to ensure each product stays within legitimate channels throughout the supply chain.
Equally important is for firms to implement a proactive approach. Companies must work together to address the extensive counterfeit issue and accurately highlight, track, trace and authenticate the genuine products.