Steve Ablett

In an intensely label-conscious marketplace, protecting the brand becomes an imperative. The long-standing problem of protecting forgery has become complicated by the increasing availability of goods that are essentially genuine, but have been distributed via unauthorised sources.

The problems fall broadly into the following categories:

  • Goods that have been copied by unauthorised manufacturers and barcoded using forged tickets
  • "Overs" manufactured by an authorised supplier, but shipped via unauthorised channels using forged tickets
  • "Overs" shipped using genuine tickets that have been printed as additions to those for the actual order
  • Genuine items stolen from the supply chain

 

 

It is possible to counter these activities, but we need a well conceived armoury of measures. Let's deal with some examples.

Preventing Ticket Forgery

In the past it was possible to make a ticket difficult to forge by using complex patterns, much as bank notes have been protected. The cheapness of accurate scanning technology has made this approach ineffective; nowadays the equipment to scan and print a virtually perfect copy costs less than a hundred pounds. This has led to the use of security measures such as holograms

and electronic strips. These are effective because they're expensive to produce, and the initial investment to manufacture them is considerable. Unfortunately they also introduce costs into the supply chain.

It's also possible to control forgery by using characteristic board stock, combined with specially reactive inks. These can exhibit certain key characteristics such as reaction to U/V light or to chemicals in the stock. Used with care and thought it's possible to control the supply of these materials and so make it extremely difficult to copy tickets, and hence more of a challenge to distribute the unauthorised goods.

Controlling Ticket Supply

A potentially more severe problem occurs where genuine tickets find their way into circulation. The move by many retailers towards supplier control of ticket ordering raises the spectre of unauthorised over-ordering. This is a matter to explore carefully with the ticket provider; their order management system should embody the necessary security to prevent over-ordering. These are the essential elements that should be considered:

  • Access and authority privileges should be set on a per-user basis, not as a blanket level for a company. This allows re-ordering to be restricted to trusted personnel
  • All orders should be tied to identifiable contracts
  • There should be an irrefutable audit trail
  • The ratio of "overs" to ordered goods should be closely monitored
  • It should be possible to tie in other control documentation, such as carton labels and shipping documents all on the same order
  • Ideally, ticket production should be based on data directly from the retailer's ERP system; this reduces the potential for inaccuracy and fraud by removing the need for human intervention in the form of re-keying

Ticket supply can be controlled effectively by a process of clear accountability, transparency of systems and sound security practices.

Tracking the Supply Chain

While preventative measures can significantly reduce the incidence of fraud, we have to accept that there will always be an element of leakage. The measures suggested above will certainly make casual theft more difficult, but organised supply chain fraud is big business, both in the form of forged goods and straightforward theft. In this case the proposition becomes one of detection rather than prevention.

This brings us into the realms of covert security measures. In its simplest form this may be no more than additional information built into the barcode. The latest three dimensional bar codes can store immense amounts of information, allowing tracking and coding to an incredible level of detail. But even standard flat barcodes can hold sufficient data to identify the origin of any garment. This allows us to track an unauthorised item back to the manufacturer.

R/F tags are becoming an increasingly popular device for supply chain tracking. They contain a tiny, low power radio transmitter that emits identifying data in a continuous loop. The transmission can be detected by receivers in distribution centres, loading and trans-shipping docks, or by hand-held units. They allow goods to be detected even inside containers without opening or offloading. Some R/F tags contain receivers that allow them to record responses from the port systems through which they pass. This means that we can track the shipment history of an item, possibly detecting the point at which it was diverted from the authorised route.

One fraudulent operation that has become prevalent in recent years is to return stolen goods to stores for credit. "Cabbage", as it has become known, is a serious drain on profitability and a severe compromise to brand integrity. It effectively required the retailer to pay twice for the same item - once at retail price - and also distorts customer demand patterns.

Covert security measures can be highly useful in this circumstance. Tiny variations in ticket design can, for example, denote point of origin. Some ticket providers can even encode hidden information into design elements such as full stops or brand logos.

Consistency of Brand Presentation

So far we've dealt pretty exclusively with illicit practices. But protecting the brand is also a question of controlling its presentation. Poor or inconsistent quality in ticket printing undermines the brand's positioning, and in extreme cases can result in ink staining the garment itself. This comes down to careful selection of the ticket provider and close examination of its printing arrangements.

The apparently simplest option is to allow the manufacturer to source its own ticket printing. This allows the supplier to buy tickets from the cheapest local printer, potentially saving production and shipping costs. But it does nothing for consistency of presentation or reliability of supply. The cost of the ticket is a minuscule part of the supply chain overhead, but the ticket's ability to stall the whole process should never be underestimated.

If you're serious about protecting your brand then the only viable course of action is to choose a reputable ticketing partner who understands its importance. Look carefully at claims of global printing: are the production facilities directly owned or merely contracted to the provider? If we're looking for consistency of supply and presentation then we can't afford to accept variability in systems.

Digital printing has played an increasing part in ticket production over the last five years or so. Printing in black onto pre-printed stock is now so widespread that it's virtually become the norm. Ticket providers with efficient laser printing facilities can usually provide faster response and greater flexibility than those relying purely on offset litho. Such is the power of the digital approach that it has become worthwhile to consider producing the whole ticket using colour laser machines. This allows variable data to be printed in full colour, bringing all sorts of new opportunities, from embedded security measures to variable loyalty offers. It also makes stockless printing a possibility, bringing further advances in flexibility and savings on cost.

The only question mark over colour laser printing is that of quality. The early colour lasers were easily identifiable for their less saturated tones and more uneven solid colours. This obviated their use where perfect brand presentation was required, though they worked extremely well in less demanding applications. With the development of new techniques and toners, that quality differential is now far less pronounced, making digital print an option in brand-critical circumstances.

In Summary

The brand is one of the most crucial elements of the retailer's armoury. It must be protected at every level to avoid fraud and ultimate degradation of identity. The barcoded ticket can be regarded in this context as a threat or an opportunity. Approached as an inconvenient item that unfortunately constitutes a vital part of supply chain control, it's undoubtedly the former.

But a creative, open partnership between the retailer and the ticket provider brings opportunities to strengthen the brand while simultaneously bringing supply chain losses to heel.

Steve Ablett is Sales Director of Gresham. He has been an outspoken advocate of creative brand protection in the supply chain for several years. He presents regularly on topics such as supply chain improvement, cost reduction and brand integrity. Steve can be contacted via info@greshamticket.com or on +44 (0)1536 408408.

 
 
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