Anti ‐ Counterfeiting in the Retail environment – a perspective Dr Graham Wright On behalf of the Consumer Goods Council of South Africa
Overview • Introductory comments Introductory comments • The Consumer Goods Council of South Africa Africa • Counterfeiting and the retail sector • Closure
Introductory comments • Appreciation for an opportunity to participate in this forum; • Characterised by: – Breadth of engagement; – Intensity of effort; – Action orientation. A i i i • Built on a foundation of many years of engagement and commitment engagement and commitment.
The Consumer Goods Council of SA • A membership ‐ based organization representing over 12 000 members in the retail, wholesale and manufacturing of consumer goods consumer goods • Seek action through advocating on policy. advocacy advocacy • Negotiate on behalf of sector: legislation, g g , labour issues, environmental initiatives. Create awareness and favourable Create awareness and favourable • industry PR. spokesperson • Represent industry on topical issues, often ad ‐ hoc. act act • Execute collective action, economy of scale or anti ‐ trust concerns scale or anti ‐ trust concerns
CGCSA Board Members Massmart Holdings • • Willowton Group • Nestle SA • Spar Group • Smollan Holdings Smollan Holdings • BAT BAT • Tiger Brands • Woolworths • Pi Pioneer Foods F d • I Imperial Logistics i l L i i Maponya Group •
Affiliations Locally member of Business Unity South Africa The Consumer Goods Forum Global platform for the consumer goods industry industry. GS1 A leading global organization dedicated to the design and implementation of global standards and solutions to improve efficiency and visibility in the supply chain. FIRAE Forum for International Retail Association Executives.
Initiatives include: • Industry Affairs – Advocacy & Lobbying with respect to economic legislative and regulatory respect to economic, legislative and regulatory issues affecting the industry • Food Safety – Industry spokes person • Crime Risk Initiative – Network, Liaison & Solutions • GS1 • GS1 – Global standards, managing collective action Global standards managing collective action
Consumer Goods Risk Initiative Risk and loss due to the impact of crime has an immense impact on businesses in South Africa. In 2001 the major retailers joined forces to mitigate 2001 th j t il j i d f t iti t crime within the retail industry through the Consumer Goods Risk Initiative (CGRI). ( ) • Direct losses average an estimated R18 million per annum; • 5 major retail groups signed up j g p g p as members of the Consumer Goods Risk Initiative to reduce Crime in the industry. Initiative currently under review : • Align with emerging needs of the industry; • • Enhance value proposition Enhance value proposition.
Consumer Goods Risk Initiative (Cont.) Employee Employee Crime Incident Crime Incident Reference Site Management System Instant alerts - Special Projects Amavuso Formulation of best Forums and SAPS practises ti Liaison A Formidable and Respected Industry Voice in South Africa
GS1 South Africa and WCO • Does the physical object have • Technology agnostic the expected digital covert the expected digital, covert • Global Location Number (GLN) • Global Location Number (GLN) (hidden) and/or overt • Global Trade Item Number (obvious) deterrents to prove (GTIN) authenticity? authenticity? • Specific forensic features Specific forensic features • Who is the authoritative and • Lab or field analysis trusted source to verify the • Hologram, label, overt seal objects authenticity? information 10
The role of GS1 South Africa GS1 is a not ‐ for ‐ profit organisation dedicated to the design and implementation of global standards to improve the efficiency and visibility d d i h ffi i d i ibili of supply chains globally and across sectors • 111 member organisations • 40 years of experience • Neutral platform for all supply chain stakeholders Neutral platform for all supply chain stakeholders • Over a million companies doing business across 150 countries • Over 6 billion transactions a day O 6 billi t ti d 11
Counterfeiting and Retail • Billions lost annually through the counterfeit industry • Seizures up annually • Challenges: � Inter ‐ Agency cooperation � l � Slow criminal justice processes l � Intelligence capacities � Awareness and corruption � Awareness and corruption • Consumer Goods Council of South Africa members take action � Forum in place with the support of key stakeholders p pp y � Study to be commissioned 12
Government/Business Partnerships • Codentify and Microdot parallels; � Microdots are small (0,5 mm diameter) dots with unique inscribed codes applied to vehicles; codes applied to vehicles; � Purpose – to secure the identity of motor vehicles as a deterrent to theft/hijackings/cloning; � Potential global solution – SA taken the first step; � i l l b l l i k h fi � Extract lessons and best practices and apply. • The challenges: g � Long lead times; � Roles and responsibilities (lead and critical support agencies); � Alignment (government & business); � Alignment (government & business); � Solution development ‐ independence; � Legislation; � Implementation risks. 13
Closing comments: • A united, coordinated and well directed front in tackling the illicit market is clearly growing in importance; • CGCSA, as an important and influential industry body, is engaging with stakeholders to determine its role, along with others; • Current capabilities (GS1, information platforms, ( f f networks and forums) and associated best practices clearly should be exploited; clearly should be exploited; • Leveraging our synergies and objectives. 14
Source – Trade Intelligence
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