Using EPCIS 2.0 and the CBV to Prevent Counterfeit Products
Counterfeit products cause significant financial losses to businesses while putting customers at risk. The global market size of counterfeit items is expected to reach $1.82 trillion by 2020. Counterfeit products damage brands' reputations, decrease revenue, and expose customers to harmful substances. Thus, counterfeit prevention is paramount to maintain customer trust and brand reputation.
Companies are seeking ways to prevent counterfeit products along the supply chain using modern technologies like EPCIS 2.0 and CBV.
This article will discuss the concepts of EPCIS 2.0 and CBV and how they can prevent counterfeit products.
EPCIS 2.0
EPCIS 2.0 is the latest standard developed by EPCglobal for capturing real-time events within supply chains. The standard provides a standardized format for organizations to exchange product-related data in real-time.
EPCIS 2.0 uses the Electronic Product Code (EPC) to track products, allowing stakeholders to access relevant product information, such as its origin, movement, and authenticity. By sharing event data across supply chains, all stakeholders can optimize logistics and reduce costs associated with supply chain inefficiencies. EPCIS 2.0 creates significant benefits for organizations to:
- Increase supply chain visibility
- Enhance demand forecast accuracy
- Improve inventory management
- Reduce inventory carrying costs
- Optimize transportation routes
- Minimize stock-outs and overstocking
By leveraging the real-time insights provided by EPCIS 2.0, supply chain stakeholders, including retailers, manufacturers, freight forwarders, and distributors, can address bottlenecks and reduce waste.
CBV
CBV (Chain of Custody, Business Validation and Product Origin) is another technology that helps prevent counterfeit products. CBV provides a platform for collecting and verifying data about production, materials, and supply chain details, guaranteeing product authenticity. CBV is built on the Blockchain, which is an immutable, distributed ledger system that records transactions across a network of computers.
CBV uses smart contracts, which is a code that automates the processing of Blockchain transactions. Smart contracts can be programmed to execute when specific conditions are met. For example, a smart contract can be set to execute automatically when a product enters or exits a warehouse or country. These smart contracts help to automate the data collection process, which reduces the risk of human error.
By leveraging CBV, stakeholders can:
- Verify the origin of materials and products
- Detect and trace counterfeit products
- Increase supply chain transparency
- Facilitate regulatory compliance
- Ensure that products adhere to safety and quality standards
CBV provides additional benefits such as enhancing trust among supply chain participants, reducing transaction costs, and reducing administrative overhead.
Combining EPCIS 2.0 and CBV to prevent counterfeit products
EPCIS 2.0 and CBV can work together to provide a comprehensive solution against counterfeit products. EPCIS records real-time information about events within the supply chain, while CBV records transaction records in an immutable, distributed ledger system. Combining these technologies can provide enhanced supply chain visibility and traceability, increasing the efficiency of preventing counterfeit products.
If a counterfeit product is detected, stakeholders can track its origin, production, and distribution history using EPCIS 2.0 and CBV. Since the Blockchain's ledgers are immutable, stakeholders can detect if someone tampered with the product or any of its records.
By combining EPCIS 2.0 and CBV, stakeholders can also improve the effectiveness of recalls. If a safety issue is identified with a product, it can be traced back to its place of origin, reducing the chances of affected products being missed within the supply chain.
Benefits of using EPCIS 2.0 and CBV to prevent counterfeit products
Using EPCIS 2.0 and CBV to prevent counterfeit products provides numerous benefits, including:
- Improved supply chain visibility
- Enhanced traceability of products
- Reduced administrative overhead
- Reduced compliance costs
- Increased trust and transparency
- Improved customer trust
- Reduced financial losses caused by counterfeit products
- Efficient and effective recalls
- Improved product safety
- Improved quality control
Conclusion
Counterfeit products pose a significant threat to businesses worldwide, damaging brand reputation and costing organizations billions of dollars. To combat the threat, companies need cutting-edge technologies like EPCIS 2.0 and CBV that provide complete supply chain visibility and traceability for products.
By using EPCIS 2.0, stakeholders can record real-time data about events within the supply chain, including the movement and origin of products. CBV provides a platform for collecting and verifying data about production, materials, and supply chain details, guaranteeing product authenticity.
Combining EPCIS 2.0 and CBV provides a more comprehensive solution that is more efficient and effective in preventing counterfeit products. The combination of these technologies improves supply chain visibility, reduces administrative overhead, facilitates recalls and process improvements, and improves product safety and quality control.
Businesses that leverage EPCIS 2.0 and CBV to prevent counterfeit products can reap significant benefits such as reduced financial losses, improved customer trust, and increased brand reputation, which are essential in today's competitive and global marketplace.