NEWS: Secure supply chains, blockchain and brand protection27-10-2018
Systech CEO Ara Ohanian will enlighten delegates on Using software to secure a supply chain from the manufacturing floor to the consumer’s hands. He contends this marks a shift in packaging industry. It is almost certain the termBlockchainwill be mentioned. And in a timely reminder of the growing importance of this, Systech has recently partnered with Pharma Logistics IQ to produce a report entitled: Blockchain: Can Cryptocurrency Revolutionize Brand Protection?
The report says: Building a better “mousetrap”has been the goal in brand protection solutions for decades. But despite the billions being invested in protecting products and securing the supply chain, we are not seeing a material decrease in issues.
The grey market is strong, and seemingly getting stronger. If you have a great product, someone is likely counterfeiting it. If you have a well-planned distribution and channel strategy, someone is looking to divert goods from it and impact your revenue flow.
Many in the industry are looking at blockchainas the latest “mousetrap” to solve global brand protection issues. As Blockchain has so many characteristics that are required in this battle, including:
- Trusted chain of possession
- Known ownership and title transfer
- Notarization and time stamping of all events
- Notion of smart contracts
- System of warranties
These are essential requirements for a trusted supply chain, enabled by blockchain. All these capabilities evolvedfrom building the necessary infrastructure to facilitate cryptocurrency, namely Bitcoin. It works because blockchain uses a decentralized ledger (chain) of all transactions (blocks) across a peer-to-peer network. All participants confirm transactions without the need for a centralized certification authority. Everyone sees and agrees to the truth, and this process replicates as transactions occur and new blocks get added to the chain.
What does cryptocurrency have to do with the brand protection of physical products? The trusted chain of possession, known ownership and title transfer, plus notarization and time stamping of all events that is required to establish a cryptocurrency is exactly in linewith trusted supply chainrequirements. When you add the immutability of the encrypted blockchain ledger that contains all the events and transactions, you have a trusted platform that could be adaptedfor supply chain use.
You can download the reportfrom the Pharma Logisics IQ website. Better still, come along to the AIPIA Congress and listen to Ara first hand on how to harness the power of Blockchain and other traceability technologies.
Systech took the top prize in the category of Excellence in Pharma: Supply Chain, Logistics, and Distribution for its UniSecure authentication system at this year’s CPhI meeting in Madrid.
The fingerprinting technology – which doesn’t require the addition of any new factor but relies on tiny variations in print or packaging – can be used to identify product diversion and counterfeiting with a simple scan. The unique signature is stored in the cloud and verified using a mobile app.News overview