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| Business Challenge |
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In almost every market, and especially in markets such as pharmaceuticals, durable medical supplies, electrical components, semiconductors, and luxury goods, it's essential for manufacturers to be able to guarantee the authenticity and integrity of their products.
To protect both their revenues and their reputations, manufacturers need to be able to give themselves and law enforcement officials convenient, irrefutable means of distinguishing genuine products from counterfeits, and of detecting where in a distribution channel products are being stripped, diverted, or otherwise misused.
Furthermore, secure authentication capability has become a regulatory requirement in many industries. Solutions being used to ensure regulatory compliance can also be used for industry control purposes.
| MICRO SIZED CODING / TRACKING AND AUTHENTICATION |
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ORBID 2DMI (2 Dimensional Marker Identification) is a patented, flexible and unique mark that has the appearance of pickup sticks being randomly thrown into a square. It can be quickly and cost-effectively integrated into a comprehensive track-and-trace solution that can address the above and more. |
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| Anti-Counterfeiting/Brand Protection |
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- Since 1982, the World Customs Organization and Interpol estimate that the global trade in illegitimate goods has increased from $5.5 billion to approximately $512 billion annually and continues to grow. Approximately 5%-7% of world trade is in counterfeit goods.
- The Food and Drug Administration estimates that 10% of all prescription drugs sold globally are counterfeit, and U.S. Customs and Border Protection estimates that 14% of drugs sold through the mail are counterfeit, mishandled, or expired.
- The FBI estimates that counterfeiting and piracy cost U.S. businesses between $200-$250 billion annually, as well as 750,000 jobs. Those numbers are rapidly increasing.
- Per Senator Orrin G. Hatch (R-UT), Chairman, Senate Judiciary Committee, "Perhaps most troubling is the widespread threat counterfeiting poses to public health and safety. Few Americans truly appreciate the significance, scope or consequences for this crime."
Being able to track products throughout the entire distribution channel would not only help prevent counterfeiting and diversion, but it would also enable manufacturers to create a detailed blueprint of its sales and distribution channels, showing exactly which locations and stages a product passed through before arriving at its ultimate destination.
Here are some examples of ways ORBID 2DMI is being used to combat counterfeiting and provide brand protection.
- Individual doses (pills, tablets, syringes, etc.) are being coded to provide lot and batch identification information.
- The ORBID 2DMI code is being applied to a label, package, or product so the location of the code remains unknown and there is no impact on product appearance --yet the item is individually identified.
- Electrical parts are being coded with the ORBID 2DMI UID to ensure product authentication and reduce liability resulting from counterfeit product failures.
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| To learn more about ORBID’s Anti-Counterfeiting/Brand Protection solutions, click here |
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| Diversion Control/Returns Fraud |
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Along with counterfeiting, another area of concern is the diversion of products outside of their contractually authorized sales and distribution channels. Parallel and grey traders take advantage of lower regional pricing to illegally profit by selling these goods in another region where the products are generally sold at higher prices.
Grey marketing also includes:
- Representing false or exaggerated business opportunities to obtain special pricing resulting in diversion of products;
- The underreporting or misrepresenting of business activities to obtain program dollars;
- Disregarding contractual provisions of product’s use or selling to unqualified channel customers;
- Intentional supply chain and inventory mismanagement for incentive benefits.
Here are two examples of ways ORBID 2DMI is being used for Diversion Control/Return Fraud.
- Pharmaceuticals sold into foreign markets are being repackaged and dispensed within the U.S. resulting in lower margins and potential quality issues through the loss of lot and batch information. By marking each pill, tablet or vial, overtly or covertly, with lot and batch info, or even uniquely marking individual pills, integrity can be maintained and the source of diversion easily found and corrected. The ORBID 2DMI mark can be applied to almost any substrate on the packaging or the pill itself, enabling authentication to take place anywhere in the distribution channel (even at the “point-of-care” or return and disposal). By marking the individual pill, return fraud can be effectively managed by the manufacturer or wholesaler.
- A luxury goods maker used ORBID’s solution to covertly mark their products to manage diversion and support their brand protection strategy throughout their worldwide distribution channel. Over 4 million marks have been applied to their products to date. Their anti-diversion efforts have identified specific grey market activities in their distribution channel. Once identified, the luxury goods brand owners were able to undertake contract enforcement and other corrective measures, dramatically reducing product diversion.
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| To learn more about ORBID’s Diversion Control/Return Fraud solutions, click here |
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| Regulatory Compliance |
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Having the ability to perform secure track-and-trace has moved from a “nice-to-have” to a “must-have” in many industries, where it has become more critical to be able to perform lot and batch or even unique item tracking. ORBID’s solution enables the secure authentication of items throughout the pedigree life cycle. For example, the pharmaceutical supply chain can only be secured by combining an authentication solution like ORBID with a pure track and trace logistics solution as depicted in the diagram below.

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| Here is an example of a way ORBID 2DMI is being used for Regulatory Compliance. |
- A leading durable medical device manufacturer is using laser technology to apply the microscopic ORBID 2DMI mark on their surgical screws and plates, which are as small as a millimeter in diameter. The customer is responding to regulatory requirements to uniquely identify each device, enabling secure track-and-trace capability.
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| To learn more about ORBID’s Regulatory Compliance solutions, click here |
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| Inventory Control |
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Another area where track-and-trace capabilities are being deployed is Inventory Control especially in situations where an asset that is sent out in the field must be returned and accounted for.
Here is an example of a way ORBID 2DMI is being used to for Inventory Control.
- ORBID helped a brewery establish an inventory control system that leveraged ORBID’s 2DMI mark for float control, deposit management, and quality control for their returnable container (keg) inventory. The mark could be read on stainless steel (low contrast) and was damage resistant.
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To learn more about ORBID’s Inventory Control solutions, click here |
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