Blog Post

Counterfeit Goods: The Most Hard-Hit Industries And The Need To Increase Global Supply Chain Visibility

Adapt Ideations • Jul 12, 2021

Counterfeit goods can affect all industries including food, pharmaceuticals, and luxury brands.

Counterfeit goods accounts for 3.3% of global world trade and is continually rising, as found by the Organisation for Economic Co-operation and Development 2019. Counterfeit goods can place significant strain on the global economy and affect company’s reputations. Counterfeit goods can affect all industries including food, pharmaceuticals, and luxury brands. By ensuring greater supply chain visibility, companies can understand how products are being handled and if products have potentially been tampered with.

The impact of counterfeit goods is detrimental to luxury brand operations and reputation. Consumers may unknowingly purchase counterfeit products that look genuinely authentic at the same price. A report released by Intech Open in 2019 revealed an astounding annual loss of USD $12 billion annually due to counterfeit luxury goods.

Greater visibility during the transport of goods can significantly reduce the occurrences of counterfeit products and products being tampered with from entering global markets. IoT enabled asset tracking solutions will enable companies to monitor vital conditions such as location, temperature and tampering of their moving consignments.

Counterfeit goods are also found in the global pharmaceutical industry, which poses alarming health concerns. A guide produced by The Therapeutic Goods Administration of Australia (TGA) warns consumers of the increased findings of counterfeit pharmaceuticals. All types of medicines even temporary pain relievers can be targets for counterfeiting. Furthermore, counterfeit pharmaceuticals can pertain compounds that can cause great health detriments if consumed.

A vaccine administered in Africa was found to have been contaminated, which caused the disease to mutate. Through further investigation conducted by Gabonese Directorate of Medicines and Pharmacy found that while nearly 10% of medicines sold worldwide are counterfeit, WHO studies show that nearly 60% of medications sold in some countries are of inferior quality or fake. Counterfeit pharmaceutical products can have significant detrimental effects highlighting the importance of supply chain visibility. Globally countries are implementing laws to ensure that pharmaceuticals are tracked, such as the Drug Supply Chain Security Act (DSCSA) in the US and The Australian Code of Good Wholesaling Practice for Medicines in Schedules 2014.

The perishable food industry is also heavily affected with counterfeit goods, affecting stakeholders immensely. In recent events, Australian lobsters were smuggled into China, despite the foreign trade bans. In May of 2021 authorities seized 569kg worth of live lobsters, valued at AUD $25,000 in Hong Kong. The supposed Australian rock lobsters seized, are a delicacy in China and highlights the increase in counterfeit goods within the perishable food industry. The consequences of counterfeit perishable goods means that companies may be completely unaware that their products are being transported to unauthorised locations. The spike in illicit trade routes or “grey channels” demonstrates the need for greater supply chain visibility and consistent tracking to take place for the industry.

Adapt Ideations’ IoT enabled asset tracking solution KELVIN Pro can be utilised to ensure greater supply chain visibility is achieved and products are not tampered with. The asset tracking solution enables near real-time location tracking, and data to be collected on temperature, shock, and light exposure of moving assets. Alerts are relayed in near real-time if any deviations from set parameters occur. The asset tracking solution greatly empowers businesses as it allows them to take necessary action to resolve supply chain challenges experienced. The ability to monitor vital conditions of high value and temperature sensitive assets, can significantly decrease occurrences of products that have been tampered with entering global markets.

Get in touch with us today at enquiries@adaptideations.com to find out more about how our solutions can enhance supply chain visibility.

< Older Post Newer Post >

Start Your Journey >

Powerful and reliable, asset tracking and monitoring solutions.

Innovative monitoring solutions for high-value & temperature-sensitive assets.

KELVIN

Real-Time Temperature Data Loggers
Button
PIXEL

Cold Storage Monitoring Data Loggers
Button

Share Our Post.

Awards & Recognition

A silver laurel wreath with the words india biologics and vaccines awards 2022 written inside of it.

Best Temperature Monitoring Solution Provider

Awarded by India Biologics & Vaccines Outstanding Industry Awards 2022

A silver leader recognition badge with a star and laurel wreath.

Adapt Ideations Recognised As A Supply Chain Leader

by Alcott Global on Supplify's Supply Chain Tech Map 2.0

Technology Excellence in Cold Chain

Awarded at the 15th ELSC Leadership Awards

elscconclave.com

Related Articles.

Innovations in Temperature-Controlled Logistics: A Global Perspective

02 May, 2024

Temperature-controlled logistics is a crucial aspect of global supply chains, particularly in the pharmaceutical industry. Maintaining the correct temperature during transportation is not just a logistical issue but also a critical factor in ensuring the safety and efficacy of life-saving vaccines and other temperature-sensitive products. As the demand for temperature-sensitive products like vaccines and biologics continues to surge, ensuring their safe transportation is paramount. Any deviation in temperature during transit can compromise the efficacy of these products, leading to significant financial losses and potential health risks. This blog delves into the evolution of temperature-controlled logistics, critical challenges faced in this sector, and groundbreaking innovations that address these challenges. With a focus on real-time monitoring through IoT solutions, we aim to showcase the advancements that contribute to the efficiency and compliance of global pharmaceutical supply chains. Evolution of Temperature-Controlled Logistics Temperature control has undergone a remarkable transformation in the last two decades. Stringent global regulations, customer demand for new temperature ranges, emerging markets with extreme temperatures, and the growing value of drugs like biologics have been essential driving forces. These factors have spurred the evolution of temperature-controlled logistics to meet the demands of a rapidly changing world. The landscape of temperature-controlled logistics is evolving, thanks to technological advancements. Trends include the growing availability of prequalified shippers simplifying the validation process, sophisticated supply chain services, a rising interest in reusable packaging, and advances in temperature-monitoring technology. These innovations contribute to the industry's ability to adapt and thrive in a dynamic environment. Temperature-controlled logistics involves managing the flow of products through a cold chain. Divided into food and pharmaceutical sectors, the global market size of cold chain logistics is projected to grow significantly. From USD 242.39 billion in 2021 to USD 647.47 billion by 2028, exhibiting a CAGR of 15.1%, the industry is expanding rapidly, reflecting its critical role in modern commerce. 3 Key Challenges in Temperature-Controlled Logistics Compliance Issues Stringent Regulatory Standards: Global temperature-controlled logistics operates within a framework of strict regulations set by health and safety authorities. Meeting diverse regulatory requirements across international borders poses a significant challenge for companies in this sector. Documentation & Reporting: Compliance involves meticulous documentation and reporting of temperature-sensitive shipments. Keeping up with the evolving documentation standards requires streamlined processes and robust systems. Validation & Qualification: Ensuring the validation and qualification of equipment and processes according to regulatory standards is an ongoing challenge. The need for continuous validation adds complexity and time constraints to logistics operations. Risks of Temperature Deviations Product Integrity: Temperature-sensitive products, especially pharmaceuticals and biologics, are highly susceptible to temperature deviations. Even brief exposure to temperature breaches during transit can compromise the integrity and efficacy of these products. Financial Implications: Temperature deviations can lead to significant financial losses for companies. Replacing or disposing of compromised products and potential legal repercussions contribute to financial challenges. Supply Chain Disruptions: Temperature deviations can disrupt the entire supply chain, leading to delays in product availability. This not only affects businesses but can have critical implications for healthcare providers and patients relying on timely access to medications. Security & Theft Concerns Value of Cargo: Temperature-sensitive cargo, such as pharmaceuticals, vaccines, and high-value perishable goods, can become a target for theft. The significant value of these products heightens security concerns throughout the supply chain. Vulnerability During Transit: The vulnerability of cargo during transit, particularly in unsecured areas, poses a constant risk. The potential for theft during transportation adds complexity to securing temperature-controlled shipments. Need for Tracking & Monitoring: Ensuring the security of temperature-sensitive cargo requires robust tracking and monitoring systems. Integrating security features, such as real-time location tracking and tamper-evident technologies, is essential to mitigate theft risks. In navigating the intricate landscape of temperature-controlled logistics, companies must address these multifaceted challenges to uphold compliance, safeguard product integrity, and ensure the security of valuable shipments. Innovative solutions, such as advanced monitoring technologies and comprehensive security measures, are crucial in overcoming these challenges and fostering a resilient and efficient supply chain.

Seamless integration of multiple transport modes ensures optimal resource allocation, reducing lags

Revolutionizing Last-Mile Delivery: Real-Time Visibility Solutions

22 Feb, 2024

Explore the transformative power of end-to-end visibility in last-mile delivery. Embrace efficiency, security, and sustainability with Adapt Ideations' IoT solutions.

Compliance In A Global Supply Chain: Navigating Complex Regulations With Technology

17 Jan, 2024

Navigate global supply chain compliance challenges with Adapt Ideations' IoT enabled KELVIN and PIXEL devices. Real-time visibility for efficient, secure, and sustainable logistics.

there are many different types of pills and bottles on the table .

Pharmaceutical Supply Chain Security: A Global Imperative

By Adapt Ideations • 14 Dec, 2023

Explore the imperative of securing global pharmaceutical supply chains. Discover real-time track and trace solutions with Adapt Ideations for enhanced efficiency and compliance.

Vaccine Distribution Strategies: Lessons From Around The World

By Adapt Ideations • 11 Dec, 2023

Unlock the secrets of global vaccine distribution! From US triumphs to South American innovations. Explore game-changing solutions for pharmaceutical challenges.

Transforming Cold Chain Logistics: A Global Vision For Sustainability

By Adapt Ideations • 06 Dec, 2023

Explore sustainable cold chain logistics with real-time monitoring solutions. Discover Adapt Ideations' IoT devices for efficient, eco-friendly, and compliant supply chains.