Track and trace technology relies on holograms to provide the bedrock for tackling the multi-billion counterfeiting industry. Manufacturers are finding that globalization, together with the insidious nature of the Internet, have provided counterfeiters and thieves with the ability to sell goods anywhere in the world – on street corners in India or your neighborhood.

Counterfeiting Global Drivers

Modern counterfeiters are able to duplicate even the most technically involved product, though perfect replication is not the goal. The key issue in counterfeiting a branded product is to be able to replicate the product appearance, and especially the product packaging. The counterfeiting problem is compounded by complex supply chains with multiple supply and distributing networks spanning geographical borders and regions. A further complication are weak laws and enforcement, which is further complicated by the cross-border nature of counterfeiting and in the event of being caught, the sanctions tend to be negligible, certainly in comparison to the illicit profits made by criminal gangs involved.

The economics of counterfeiting are simple. Can product packaging be replicated to pass off as genuine, together with a typically substandard product enclosed, at less cost than the good can be sold for?

The answer is “Yes” in most instances.

It is only for very low cost products with little or no product packaging that counterfeiters find a problem in making money. For instance, in Russia it is usually safe to drink domestic beer Baltika, because this will probably be the genuine article. If you order a shot of vodka then you stand a high possibility of drinking counterfeit product because the price that can be charged is much greater than the cost of counterfeiting the packaging.

Counterfeiting’s Impact on Manufacturers, Distributors and Consumers

The impact of counterfeit products reaching markets is devastating. Billions of dollars are lost in both sales revenues to the legal owners and distributors of counterfeited goods and the increased costs to consumers, from both buying a product which will not work, or worse causes harm to them. There is also the opportunity cost of revenues being directed into the hands of criminals, including terrorist organizations, which creates a social cost we all bear. In addition there is the hidden cost of revenues not being collected by those companies who other wise will use them to advance further research into advanced product development.

Manufacturers suffer from damage to their brand identity and their own reputation for making quality goods; however distributors also suffer from the fallout too. Customers are frequently reticent when it comes to buying from a retailer who has already supplied fake products. Who is responsible for fake goods polluting genuine supply channels is also a frequent cause for friction between manufacturers and retailers

Introducing Holograms and Track & Trace

Holographic technology is now able to be used to provide more than a simple sign of being genuine. A hologram label can also be used to convey highly specific information about a product which can be easily read by anyone with the right reader at any point from the originating factory, through the distribution chain to the end retailer and consumer.

By combining product serial codes within the hologram, a track and trace system can be effectively implemented. Individual “license plates” for a product can carry information which will identify the individual product, the product batch, pallet and dispatch information. The implications of this “personal” identifier are far reaching and fall outside simple product identification.

By establishing a hologram track and trace system, manufacturers, distributors and law enforcement can establish how a product has arrived to market. In the event of theft or unauthorized retail, this is an important piece of the puzzle for identifying where the real problem lies and being able to tackle it. In the event of counterfeit products, hologram labels carrying unique serial codes makes it easy to spot fake holograms and spoofed identifiers, and once again helps backtrack the fake goods to the point they entered the supply chain.

There is a further benefit of implementing holographic identifiers in that the track and trace system can be integrated with ERP (Enterprise Resource Planning) tools. The data carried on the hologram labeling providing the ideal vehicle to carry a range of product data and information which goes beyond a simple authentication function.

Author, Lawrence Reaves, writes for Maverick label which carries Maverick hologram stickers. For more information on hologram stickers click here.

Author, Lawrence Reaves, writes for Maverick Label where you can Hologram stickers here http://www.mavericklabel.com/products/imprinted-hologram-stickers.php

Author Bio: Author, Lawrence Reaves, writes for Maverick label which carries Maverick hologram stickers. For more information on hologram stickers click here.

Category: Business
Keywords: hologram stickers,hologram sticker