Elsevier

Business Horizons

Volume 56, Issue 2, March–April 2013, Pages 167-177
Business Horizons

Technology designed to combat fakes in the global supply chain

https://doi.org/10.1016/j.bushor.2012.11.010Get rights and content

Abstract

With the increase of globalization in trading and online shopping, phony products are on the rise in the market. This article introduces a range of technologies that have been implemented in the supply chain to deter counterfeiters. Technology for both product authentication and tracing and tracking products in the supply chain will be discussed, along with the advantages and disadvantages of each solution. Additionally, success stories on combating counterfeits are introduced. Finally, issues related to rising anti-counterfeiting costs, collaborative efforts in fighting fakes, and a multi-pronged plan are explored.

Section snippets

Safeguarding authentic products and keeping companies from unfair competition

With the increase of globalization in trading and online shopping, the amount of counterfeit goods and fake products has skyrocketed. According to CBS News’ Bob Orr, on May 4, 2012, the U.S. Justice Department shut down several websites that sold fake sportswear. The law enforcement agency also indicated that it seized $1.5 million in illegal revenue (“The Battle,” 2012). In 2011, U.S. Customs officers confiscated more than $1 billion in phony handbags, sportswear, electronics items, and the

Anti-counterfeiting technology: Ways genuine products beat out fakes

The purpose of applying anti-counterfeiting technology is to protect brand names, suppliers’ reputations, and public safety. In general, anti-counterfeiting technologies should be easily applied but difficult to imitate. These technologies usually have four main features: (1) difficult to duplicate or forge, (2) easily identifiable visually without the need of special equipment, (3) hard to re-label or reuse, and (4) easily noticeable when tampered with. Counterfeiting devices are applied in

Putting anti-counterfeiting technology to use

At present, anti-counterfeiting technologies have been extensively applied to various industries, including pharmaceutical products, luxury handbags, clothing, cosmetics, software, CDs and DVDs, and consumer goods. Firms deploy anti-counterfeiting technology as a strategic tool to ensure the authenticity of branded products and business reputations. Many Fortune 500 consumer products companies—such as Wal-Mart, Home Depot, Procter & Gamble, and Target—are involved in implementing

Industries flex their muscles against counterfeits

At present, a range of anti-counterfeiting solutions—such as holograms, color-shifting inks, security labels, EPCs, electronic data interchanges, and RFID—are available to enhance product authentication and to play the trace and track role in supply chains. Many industries have incorporated advanced anti-counterfeiting solutions to enhance their brand reputation and ensure product safety. This initiative is most evident in the pharmaceutical industry. By applying anti-counterfeiting labels on

Looking ahead

To further enhance the effectiveness of anti-counterfeiting solutions, it is critical to create global awareness about the economic, political, and safety impacts of counterfeiting (Stumpf & Chaudhry, 2010). Fraudulent products are penetrating almost every sector of the world economy. In an e-commerce society, phony goods do not just enter a country in container boxes; they are now conveniently available from Internet stores that look like trusted brand retailers. As long as counterfeiting

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