Superlative Hi Tech Anti Counterfeiting Solutions from New Momentum

To stay competitive, companies are pushed to seek new global markets and to outsource their production. Today, many companies are forced to utilize low-cost regions such as China and India just to survive. With the tempting cost-savings globalization has to offer, comes considerable risk. Since most companies are not well-equipped they are unable to grasp the magnitude of this risk. Without proper planning and tools in place, they are left exposed to two main categories of risk –product counterfeiting and unauthorized sales channels. These risks can affect every facet of your business. They affect your bottom line, stock value, and can end a product even before it is launched! Legislation; high tech tags and labels; product packaging and New Momentum’s high tech anti counterfeiting solutions is equipped with sophisticated brand protection technology which can easily find the violators and shut them down so you can recover the revenue and brand reputation lost to counterfeits. Read our white paper on the effects of high tech counterfeiting.

Overcoming High Tech Industry Counterfeiting Challenges

What really drives high tech industry counterfeiting risks?

• Cost cutting techniques and practices. Back in the early 1990s, company managers turned their production departments into well-oiled machines incorporating just-in-time and lean manufacturing techniques, reducing costs from the processes by which they got electronic components to the right places. More recently global outsourcing was added to the list of cost-saving supply chain solutions. However, these practices brought about considerable risks from counterfeits and gray market sales.

• More demanding customers lead to demand fluctuations, shorter product lifecycles, greater product variety and price sensitivity; all this has pushed manufacturers to seek out newer markets globally, to outsource their production and find new ways to have a more lean operation. According to a Deloitte report on Supply Chain Risk Management there is a trend toward concentration and globalization, resulting in downsizing and outsourcing production locations and/or sales outlets, with an emphasis on greater efficiency and economies of scale. All of these activities are making manufacturers more vulnerable to risks such as counterfeits and unauthorized distribution.

• Globalization and outsourcing to low cost regions such as China and India have made the situation significantly more challenging. Companies are struggling with a significantly increased counterfeit and unauthorized distribution problem.

• Lean manufacturing techniques are another trend that can lead to potential enterprise risks. According to a research report by Mark Hillman, AMR Research analyst, “As firms race to incorporate global sourcing strategies, integrate contract manufacturing relationships and deal with the increasing number of events that can cause disruptions, managing risk is an increasingly critical need. At stake are billions of dollars of stock market capitalization, market share losses, or even the possibility of going out of business because of an inadequate understanding of the magnitude of these risks.”