Serialization for Anticounterfeiting

Counterfeit products can pose significant risks to consumers' health and damage a company's revenue streams. Serialization and anti-counterfeiting services come as a solution for this problem for a number of manufacturers and brands in various industries. For some industries, for example, Pharmaceutics serialization is even required by legislation.

How Serialization Combats Counterfeiting

One of the tools in the fight against counterfeit goods is traceability technologies in the form of mass serialization. Serialization and anti-counterfeiting services allow buyers and sellers to easily check if the product is fake by checking the serial number with the manufacturer's database.

Mass serialization involves assigning a unique serial number or code to each product unit. As a rule, the code is assigned in the form of a matrix code, in order to maintain readability by the corresponding optical device on the one hand and also to occupy a minimum space on the product.

Confirmation of authenticity with the mentioned method may face certain obstacles, however, it is easy to prove a fake: if the code on the product does not exist in the manufacturer's database, then the item is definitely a fake. However, if a code is found in the manufacturer's database, unfortunately, this does not guarantee that the product is truly original because a counterfeiter can easily copy the existing code.

Importance of Serialization in Anticounterfeiting

One of the key tools in battling counterfeiting is serialization. Serializing each product, device or assembly allows the tracking of its movement from raw materials to finished products along with everything in between.

It provides insights into which supply chain partners handled the products, identifies the specific components or ingredients that went into the final product, records the item’s overall history, and allows stakeholders to interact with each individual product.

In turn, this information can help in detecting bottlenecks or inefficiencies throughout the production process and provide data that is valuable for inventory management and forecasting.

Serialization labeling is required by law for a number of industries, especially pharmaceutical products. It helps to improve patient safety, prevent counterfeit products from entering the market, and enable more efficient recalls.

Industries Benefiting Most from Serialization

In the food and beverage industry, pharmaceuticals, and many other industries that sell products with a limited life expectancy, serialized codes keep people safe and allow brands to take entire batches out of circulation, if necessary.  It plays a fundamental role in the pharmaceutical sector, particularly. The serialization method is utilized for several key aspects of product management and safety.

According to the World Health Organization report issued in 2020, it was estimated global pharmaceutical industry loses approximately $200 billion annually because of counterfeit drugs. Since serialization helps to track the supply chain, this number may be reduced. Some pharma manufacturers report, that after applying serialization, their costs related to counterfeiting have been reduced by as much as 10-30%.

Industries, such as Food & beverage, Luxury goods, and Electronics are also reporting a reduction of losses between 5-20% after applying serialization and preventing counterfeit goods from entering their supply chain.

Modern Technologies Enhance Serialization and Anti-Counterfeiting Services

Traceability technologies are increasingly being used in combination with online verification tools such as e.g.  QR codes containing a special link. This allows the consumer and the seller to verify the authenticity of the desired product on the manufacturer's website before purchase. In addition, the integration of modern technologies provides an authentication method such as serialization with an additional layer of security and reliability.

Particularly, serialization and anti-counterfeiting services fueled by customer activation platforms and technologies create the basis for added value and direct communication between the manufacturer and the customer. This opportunity may further expand the relationship between manufacturers and customers. It may:

• offer comprehensible benefits for the customers
• promote dialogue with the customer
• provide additional transparency about the product
• understand customers and develop tailored offers.

Final Thoughts on Serialization and Anti-Counterfeiting Services

A product or packaging that only has a serial number attached cannot prevent, identify, and recognize fake products. While serialization can be a powerful weapon in the fight against contraband entering into the supply chain, serialization alone is not a sufficient weapon to safeguard against all potential risks.

However, this does not mean that serialization is useless. On the contrary, by integrating with modern technologies, serialization provides a fairly solid resistance to counterfeit products getting into the supply chain and being sold.

Serialization has expanded from just a barcode label on a box to a more contemporary authentication method. Supply chain visibility may be enhanced by assigning through advanced technologies such as QR codes, RFID, or NFC a unique identifier or a code to each individual item. Authentify It serves as a comprehensive solution that seamlessly integrates these modern technologies with serialization. In addition to protecting brands, it supports regulatory compliance, and helps in growing customer engagement and interaction.

For businesses seeking to explore how serialization, in combination with modern technologies, can benefit their operations, a free consultation with an expert is available to provide tailored guidance on implementing solutions that effectively combat counterfeit goods and facilitate direct customer interaction, resulting in increased customer engagement.

Overall, product serialization, especially, if combined with modern technologies, improves operational efficiency, creates new revenue streams, reduces operational costs, and opens up new opportunities for customer interaction, engagement, regulatory compliance, and sustainability.