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Protecting Brand Value through Anticounterfeiting Supply Chain Strategies

Counterfeiting is a problem many companies do not want to acknowledge or talk about. However, ignoring the problem is likely to have the effect of encouraging counterfeiters to go unchecked. A multilayered strategy that adopts several approaches and engages the entire organization is needed to address the counterfeiting problem. This chapter provides a set of recommendations to address the issue of counterfeiting. Initially, the size of the problem must be estimated and the return on investment approximated. This can help define the need for a team of experts to work in this area, leading to a set of performance metrics that are aligned with business objectives and outcomes. Next, the key focal product segments should be targeted and a system for identifying products through product trademark registration with customs authorities should be completed. In the end, combating counterfeiting is not a supply chain problem, it is not a legal problem, nor is it a packaging and covert marking problem. It is a global problem—one that impacts all organizations, large and small. All business functions need to be part of the discussion, not just a single brand security function. Failure to approach counterfeiting in this manner will simply allow the problem to continue to grow.