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Taking a bite out of crime

Serialization innovations from edible barcodes to invisible fingerprints are making strides in the manufacturing fight to reduce counterfeit products in the supply chain and stop highway robbery.

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In California, nut thefts are on the rise. Almonds and pistachios are leaving the processors’ sites loaded onto trucks that never make it to their expected destinations. Instead, they are diverted to another warehouse or sent away aboard a “ghost truck” that looks legitimate but is untraceable in a trucking database.

According to an article in the Los Angeles Times, 31 nut heists were reported last year in California’s Central Valley, amounting to a $9 million crime wave. And local authorities are finding the cases tough to crack because of the sophisticated nature of “high-tech nut bandits,” who ship cargo across state lines and overseas.

The problem goes way beyond the West Coast nut industry, however. The Federal Bureau of Investigation (FBI) estimates that total cargo thefts (including food, drugs, consumer product goods and medical devices) nationwide amount to a $15 billion to $30 billion issue annually for companies who fall victim to these roadside swindles.

And that’s just half the problem, as manufacturers must also deal with counterfeit products entering the supply chain. According to the International Chamber of Commerce, counterfeiting is one of the fastest growing economic crimes of our time, noting that 5-7 percent of world trade is fake.

Whether it is theft (which could move the product into poor conditions that impact product quality) or counterfeits, this is an issue that costs manufacturers a lot of money, and also puts consumer safety at risk. This is especially true when it comes to food and pharmaceuticals, which is why the U.S. Food & Drug Administration (FDA) introduced laws such as the Food Safety Modernization Act (FSMA) and the Drug Supply Chain Security Act (DSCSA).

Now a movement is underway by serialization suppliers to provide more flexible, sophisticated and secure methods of keeping food and drugs safe, starting in the processing plant, because it is clear that this is serious business.

“The people counterfeiting this stuff are not the people on the street corner,” says Jim Sinisgalli, director of market development at Systech International. “It is organized crime.”

Systech offers a variety of supply chain tracking technology, from authentication to serialization and traceability. But its product, UniSecure, offers a new twist on anti-counterfeit technology. In a way, it deceives the thieves.

Fooling the fraudsters
“Counterfeiters are good. They have access to all of the same technology to make [the product] look like you did,” Sinisgalli says. Traditionally, industries have tried to protect products by changing the ink or font on the packaging label, things that can be easily imitated. But UniSecure takes a different approach. “It makes no changes to product packaging so that counterfeiters don’t know what you’ve done, because, in fact, you haven’t done anything.”

You may have done nothing, but the Systech technology has. UniSecure derives a unique identification signature from an existing print mark or barcode. It looks at microscopic variations that are random, unique and cannot be intentionally recreated. These variations occur as a result of the humidity in the room or from the vibration of the machine, for example. It is essentially a fingerprint that is generated when the product is being packaged. Systech takes a picture of the barcode, looking at the microscopic level to see fluctuations that are beyond what the human eye can pick up in order to create a unique identifier associated with the item. That image is then stored in the cloud and can be authenticated using Systech’s UniScan mobile app by cross-referencing it against the original fingerprint.

The smart phone app can be written to fit whatever use case is needed using Systech’s software development kit. For now, it might be a customs agent who can scan an item and tell if it is a fake or if it has been diverted to the wrong country. In the future, because it is using a smartphone app, it could be end users who are flagging the fakes in a central database. “There’s nothing stopping crowd authentication, which is ultimately what everyone wants to get to,” Sinisgalli says.

Creating something that is not disruptive to existing packaging lines or the way people work is the goal of the next-generation serialization technologies. “The market does not like change,” says Jean-Pierre Allard, CTO of Optel Vision. “Anytime a change is made, the FDA forces the pharmaceutical manufacturer to do a full test again.” However, making modifications to a programmable logic controller (PLC) is not always an option. Instead, Optel Vision is adding cameras, IT technology, 2D barcode with serial numbers on labels, and a secondary serial number printed with invisible ink to facilitate the aggregation recording.

Optel Vision’s TrackSafe platform for the pharmaceutical industry solves the problem of what happens to bottles after they hit distribution when pallets are broken down into cases and sometimes cases into bottles. There needs to be item-level traceability. “In the U.S., we don’t want to follow the case, we want to follow all of the individual bottles inside of the case,” Allard says.

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Back to Basics: Understanding Conveyors for Food Processing