Mema Brand Protection Council
Meeting
TecIdentify
Francois Augnet
13th November 08
Mema Brand Protection Council Meeting
1
Why a Branch Solution?
Facts and Figures
What is TecIdentify?
2 2
Fully integrated solution
3
Benefits & Value Added
Usage of code in daily business
4
Status & Future
First Movers & The next steps
© TRW Automotive Inc. 2008
2
Criminal Activities growing…
Product piracy costs
Global Automotive Parts Industry
5 – 10 € billion per year
Source: OECD
© TRW Automotive Inc. 2008
Spare parts – Threats!
• Counterfeit parts – including trademark-infringement
• Grey-market imports – including genuine parts diverted from one market to
another without consent of brand owner
• Excess stock by authorised suppliers, including non-branded genuine parts sold
directly from supplier to dealer without consent of brand owner
• Re-labelling – eg. Sales of used parts / reject parts
• ….and more!
Source: OECD
© TRW Automotive Inc. 2008
Spare parts counterfeiting facts
Targeted products
• Fast moving products
• Standard parts sold off-the-shelf & which
can be fitted to different models
• Parts with low per-unit costs as less likely
to carry any security device
Consequences
•
Illegal
•
Brand Image affected – disastrous
long term effects
•
Liability in case of accidents
•
Lost revenues
Eg. manufacturers 5% - 7% p.a
Source: OECD
© TRW Automotive Inc. 2008
Potential threats in Supply Chain
Distributor /
Dealer
Original
manufacturer
Trusted
supply chain
Garage / End user
Trusted
supply chain
?
Unknown
source
Source: Vesdo
Distributor /
Dealer
© TRW Automotive Inc. 2008
Consequences - dealing with counterfeited products
Personal (Emotional)
•
Dealer is cheated as he pays for an original product & gets “junk” goods
Liability
•
Low quality product create quality claims
Reputation
•
Low quality products ruin the dealers reputation
Business
•
The dealer is in breach of his contract with the original parts manufacturer
Legal
•
Selling counterfeit products is prohibited
Source: Vesdo
© TRW Automotive Inc. 2008
Mema Brand Protection Council Meeting TecIdentify
1
Why a Branch Solution?
Facts and Figures
What is TecIdentify?
2 2
Fully integrated solution
3
Benefits & Value Added
Usage of code in daily business
4
Status & Future
First Movers & The next steps
© TRW Automotive Inc. 2008
8
TRW Response to Counterfeiting
TRW supports Industry
Solution
TecIdentify
New CLEPA coding standard for authentication
Source: Vesdo
© TRW Automotive Inc. 2008
CLEPA Code –
Basic Principles of Logical Security and Barcode Structure
Today
Future
Anonymous mass of items
Every item gets its own identity
246
(01)
14 digits
248
…....free space (21)…….
438 686
9 - 20 digits
=
Source: Vesdo Ltd
GTIN
Serialisation
© TRW Automotive Inc. 2008
10
Application of Clepa Code
Extended
security
Product
Objective for
pilot project
For Track & Trace
Folding box
Bundle/ Display
Shipping case
combination with
other security systems
Source: Vesdo Ltd & Teccom
© TRW Automotive Inc. 2008
11
TRW Label with CLEPA Code
© TRW Automotive Inc. 2008
12
TecIdentify Version 1.2
Authentication Process
 Single Scans
 Online
 Mobile
Clepa Code
 Multiple Scans
 Online
TecIdentify
Database
 Local
© TRW Automotive Inc. 2008
13
TecIdentify Version 1.2
Scan, show results
Authentication: OK
Authentication: Warning
TecCom Mobile
TecCom Mobile
TecIdentify
TecIdentify
Warning!
Congratulations!
Unknown Code.
This part part
might not be an
original part from
TecCom GmbH.
This part is a
genuine part from
TecCom GmbH.
[9] Impress
[1] Yes, I want to report
this!
[9] Impressum
© TRW Automotive Inc. 2008
14
TecIdentify Version 1.2
Feedback possible
Feedback form
TecCom Mobile
TecIdentify
Contact Form:
TecCom Mobile
TecIdentify
E-mail:
Name:
Phone:
E-mail:
Yes, send the form!
Barcode:
(01)14399901959689(10)24576
89145(21)ABC123DEF45
[9] Impress
© TRW Automotive Inc. 2008
15
TecIdentify Version 1.2
Website
1. scan
2. check
© TRW Automotive Inc. 2008
16
TecIdentify Version 1.2
Response
© TRW Automotive Inc. 2008
17
TecIdentify
Features & Benefits
1. Open solution based on global standards (GS1,ISO..)
Customs, importers, distributors, garages, car driver.....
2. Worldwide 24/7
3. Answer within seconds
4. Low requirements
 Internet PC with scanner
 Mobile phone with camera and free to download
reader software
5. Direct contact in case of a problem possible
6. Sophisticated algorithms on a secure database
© TRW Automotive Inc. 2008
18
Mema Brand Protection Council Meeting Tecidentify
1
Why a Branch Solution?
Facts and Figures
What is TecIdentify?
2 2
Fully integrated solution
3
Benefits & Value Added
Usage of code in daily business
4
Status & Future
First Movers & The next steps
© TRW Automotive Inc. 2008
19
Manufacturer Requirements & Benefits
Requirements
• Pre-requisite for TRW to implement branch solution =
Achieve Global Standard Label, Design & Printing
• Move from local sites doing local labeling to streamlined standards and
processes for all aspects of product labels
Benefits of Global Standard Label, Design & Printing Project
• Synergy – Standard processes & data integrity
• More efficient & effective
• Flexible – additions/deletions & immediate changes to labels worldwide
• Can implement branch solution using CLEPA code and Tecidentify!
© TRW Automotive Inc. 2008
Possible Approach - Challenges & Benefits
How to
start ?
By Product
National
Global
Requirements
Low
Medium
High
Benefits of
CLEPA code
on label
Protection of specific
products
Marketing messages etc.
Security for a certain region or
country
Marketing messages etc.
Global solution protecting all
products & territories
Synergy & Economies of scale
Targetted marketing activities
by using the code for
messaging, promotions, part of
loyalty program
Challenges
If product produced
across multiple sites –
adapt site processes or
review need to
standardise?
Or cost to outsource the
work but then lose some
control
Creating one process across the
sites within one region
Or cost to outsource the work
but then lose some control
Large workload to standardise
processes, role definitions &
resource allocation
To find / create a global, user
friendly software solution
© TRW Automotive Inc. 2008
TRW Approach - Challenges & Benefits
How to
start ?
By Product
National
Global
Requirements
Start with packed in
house products
Starting with 2
geographical regions in
initial roll out
Will roll out globally step by step
Review current processes & resources
for labeling activities
Understand internal & external
requirements
Definition of future requirements &
conceptual design with chosen
software provider
Benefits
Global web-based solution for TRW & suppliers / Controlled access for suppliers
Protection of all products (Image, turnover etc.)
Synergy, efficient streamlined processes for all labeling design & print activities (internal
efficiencies), Single data source & storage for label information
Marketing benefits - code can be used in daily business to eg. Send messages, announce
promotions, link to a customer loyalty programme etc.
Challenges
Managing IAM & VMS
channels
Large workload &
rethinking of roles &
resource allocation
© TRW Automotive Inc. 2008
Large workload to standardise
processes, complex to design & arrive
at global user friendly software solution
for TRW sites & suppliers
The Clearing Hub - Architecture of an
authentication system
If each manufacturer is
operating his own
system:
Business processes at
the POS will be very
complicated.
Using a hub as unique
certification authority in a
given industry:
Business processes at the
POS will be simple & easy.
© TRW Automotive Inc. 2008
Mema Brand Protection Council Meeting Tecidentify
1
Why a Branch Solution?
Facts and Figures
What is TecIdentify?
2 2
Fully integrated solution
3
Benefits & Value Added
Usage of code in daily business
4
Status & Future
First Movers & The next steps
© TRW Automotive Inc. 2008
24
First Movers
project started
1
2
3
4
5
6
7
8
9
10
11
12
project start open
Bosch
Continental Teves
Federal Mogul
GKN
Hella (2009)
Mahle
Mann + Hummel (2009)
Schaeffler, LuK, INA
Tenneco
TRW
Wabco
ZF-Trading
decision open
© TRW Automotive Inc. 2008
13
14
15
16
Contitech
ThyssenKrupp
Knorr Bremse
Osram
Networking
ITG
Figiefa
MEMA / JAPIA
Car Manufacturer
25
Automechanika Sept.2008
Automechanika 2008
First Movers activities
- Invitation with 2DMatrix
- Presentation on the booths
- Promotion using Clepa Code
Joint PR activities with CLEPA & Messe Frankfurt
TecIdentify won the Innovation award at Automechanika in IT
category
Source:Teccom
© TRW Automotive Inc. 2008
26
Next steps
1. TecIdentify Version 1.3:
 Enhancement of user interface
 Add new algorithms
 Enhancement of reports
 ....
2. Anticounterfeiting - Platform - conceptual
Projects
Company
Case
Country
Contact
Security Concepts
Schaeffler
Gruppe
5 container
of clutches
CzechGerman
Border
Mario
Thümmler
TRW
Ningbo
Automecha
nika
Frankfurt
2006
Karen
Landis
Contitech
195.000
Malta
© TRW Automotive Inc. 2008
drive belts
Uncovered Fakes
Links
Christoph
Stegemann
27
Challenges for ALL companies!
•
Encouraging garages etc. across all territories to use
the solution!
•
Equipment available?
•
Ensuring this great solution is embedded in an
internal process eg. what happens in YOUR
COMPANY when a garage gets a warning message?
© TRW Automotive Inc. 2008
28
Q&A
© TRW Automotive Inc. 2008
29