COVID-19 Policy Statement
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Case Study: Fast-Moving Consumer Goods

Brand protection solution to eliminate the diversion of products from legitimate distribution channels

The Challenge

A large, global hair care manufacturer produces category-leading brands with high consumer loyalty and demand. Their products are marketed through exclusive, professional beauty care channels via a complex supply chain with diverse manufacturing systems and multiple distribution outlets.

All of these elements make their products high-value targets for counterfeiters, organized theft rings, and gray market wholesalers. In fact, the manufacturer found they were being negatively impacted by diversion of its products from legitimate distribution channels into gray or retail markets. This situation was creating dissatisfied customers and weakening their market promotional efforts.

The Need

Clearly, the manufacturer needed an anti-diversion authentication solution that would help them maintain brand equity. It was imperative that the solution include the ability to authenticate product and verify its “product genealogy” throughout its life cycle. They also needed the ability to track product throughout their entire supply chain and make sure the right product was always delivered to the right location.

The Solution

The global hair care manufacturer turned to Authentix to implement an authentication solution of serialization and a track-and-trace system that identified product diversion in the brand’s distribution channels. The Authentix solution utilized multiple covert authentication features that allow item-level serialization, full product trace-ability from manufacturing to retail, as well as provisions to track repackaged products. In addition, the track-and-trace system was seamlessly integrated into manufacturing process controls for all of the manufacturer’s 13 production lines.

Itemized serialization was accomplished for over 165 million products, enabling full trace-ability from manufacturing to retail.

The Outcome

      • Successfully identified channel leaks within a complex distribution chain of over 2,500 channel partners and 15 distributors
      • Over 300 million units have been marked since the Authentix solution was implemented
      • 47 percent reduction in product diversion
      • Consequently, product sales increased by $77 million

Contact us if your company is struggling with lost revenue due to illicit activity throughout your supply chain.

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COVID-19 Policy Statement


v1.03.17.2020

At Authentix, our mission to safeguard the integrity of global commerce is our priority as we continue to focus on customer needs with the challenges presented by the COVID-19 health emergency. Our corporate leadership team is monitoring the situation closely and its potential impact on supply chain continuity.

Our first and foremost commitment is to the health and safety of all Authentix employees. As we have said when faced with other similar infectious disease situations, we will never force Authentix employees to travel to geographic areas where they are uncomfortable or that present an increased risk of exposure to infectious disease.

Effective through April 30, 2020, we have closed the Addison Texas Facility to all personnel who do not require facility equipment to conduct their job, allowing for only those functions such as production/shipping/testing as needed to continue to serve our customers. We have banned all visitors to the Addison Texas Facility as well. We encourage all Authentix sites to enact a similar ban for employee safety and to restrict visitors, but realize this restriction is subject to local needs. We have further banned all air/train travel for all employees for Authentix business purposes. We ask that all customers, vendors or suppliers support these efforts and for those who present themselves at Authentix locations to respect and adhere to our policies and procedures that may limit access on this temporary basis.

We will continue to communicate regularly with our suppliers and updating contingency plans to ensure against any adverse impact or disruption to our customers, acknowledging that we are however subject to continued government restrictions and limited availability of transportation that may continue during this time. We encourage you to reach out to your Authentix point of contact with any questions or concerns.

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