Global Haircare Brand Deploys Digital Product Authentication to Secure its Supply Chain from Product Diversion

The Customer

A prestigious, fashion-forward manufacturer of haircare, cosmetics and personal care products that include shampoos, conditioners, hairsprays and moisturizing creams. The brand currently sells through its salon channel only, providing elite customers with product and sales exclusivity while protecting their image and reputation.

The Challenge

A new prestige line was scheduled to rollout in Spring 2018—all at significant risk of diversion. The brand recognized the need for an anti-diversion strategy in their launch plan to secure the supply chain.

These high-value products were prime targets for diversion. Without a brand protection solution in place, the brand would be exposed to financial risks and diminished reputation if products leaked out to unauthorized distributors—ending up at brick-and-mortar and e-commerce retailers at reduced prices.

It was time to implement a cost-effective solution before the rollout to:

• Authenticate individual products
• Prevent revenue loss
• Secure the supply chain
• Maintain integrity of validated results

These needs drove the brand’s decision to partner with Systech, the global leader in supply chain security and product authentication.

Solution

The manufacturer deployed a combination of product authentication and track-and-trace solutions from the Systech brand protection suite. Systech provided the technology, tools and expertise to close vulnerability gaps in the supply chain and reduce product diversion.

Systech’s non-additive, real-time mobile authentication solution works with existing package barcodes and a simple smartphone app. Its patented technology analyzes the random micro-variances in native barcode printing to derive a unique digital signature—or e-Fingerprint®— that enables product authentication and tracking from the individual item level to the case and pallet levels.

Here’s a snapshot of the authentication workflow:

• Pallets of product manufactured by five CMOs were delivered to a distribution hub
• Individual product bottles were set up in two quality-controlled, automated e-Fingerprint production lines integrated with Systech hardware
• Existing barcodes were e-Fingerprinted
• Authenticated bottles were re-packed, and carton labels generated
• Orders were fulfilled and shipped globally

Results

Systech delivered the ability to authenticate and track products at the individual item level and leverage aggregation to move a case or an entire pallet of items with one scan. This enabled the brand to secure its supply chain, mitigate product diversion risk and protect its revenue. Systech’s support team worked closely with the manufacturer to ensure a successful implementation. Since the rollout began they have:

• Increased product throughput in excess of 500,000 unique e-Fingerprints
• Improved risk management and control through centralized authentication

Next Steps

The brand’s successful deployment of this anti-diversion solution translates to a competitive advantage built on resilient brand protection and a secured supply chain.

How Can Systech Solutions Help Protect Your Brand?

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