Secure marking, authentication and tracking & tracing to combat illicit trade J Prodger BAT Track and Trace Data Manager 6th October 2014

Digital Tax Verification Product Authentication Who we are Formal Association, registered in Zurich Produce 75% of the world’s tobacco products (ex China) Raise over US$150 billion in taxes annually Digital Tax Verification Drive for the adoption of standards (and approved solutions) to fight illicit trade in excisable products. Track & Trace Product Authentication

Separate problems & Solutions Smuggling Counterfeit Tax Evasion SOLUTIONS Track & Trace Authentication Volume/Tax Verification Regulatory Response: EU Tobacco Products Directive FCTC Illicit Trade Protocol

Regulatory Requirements Stick Pack TPD Security Feature (Overt/Covert Authentication) FCTC Protocol Carton EU Cooperation Agreement TPD (Beyond 1st Customer) Master Case Pallet Full tracking and tracing of cartons (normally containing 200 cigarettes), closed master cases (normally containing 10,000 cigarettes) and pallets (normally containing 500,000 cigarettes) Enabling every carton to be tied to a closed master case and every master case to be tied to a pallet In the event of the seizure of a carton, master case or pallet BAT is able to report on the journey of the product through the supply chain from factory to the identified 1st external customer for that product Manufacture On site warehouse Distribution Centre External Distributors/ Wholesalers Retail Outlet Consumer

External Distribution Tracking & Tracing Production Internal Distribution Pack Outer Mastercase Pallet Warehouse1 Warehouse 2, etc. T&T AIT Portal & Database 1st Customer External Distribution 2nd Customer . T&T regulatory Queries .

The Need for Interoperabilty Data Centre BAT Warehouses The Need for Interoperabilty Manual Scanners ERP 3rd Party Logistics Warehouses 3PL WMS Track & Trace Global Database Repository (SAP OER) Factory Factory Site System Case Packer Line System Palletising Line System MES Carton Scanners Case Scanners Printers Pallet Solution Integration Platform (SAP PI) Events Access Gateway Tracking ID Tracing Information XML Gateway Customer Info Movilizer Cloud SKU & EAN SAP Documnet

EPCIS Data capture Covering Manufacturing & Supply chain Events DCTA has implemented GS1 Identification Standards GLN SGTIN SSCC DCTA has implemented GS1 Data Carriers for Carton, Mastercase and Pallet DataMatrix GS1 128

EPCIS Data capture for All Manufacturing & Supply chain Events DCTA has implemented EPCIS for interoperabilty across various partners, platforms and technology event data exchange. EPCIS 1.0 with Extensions for Master Data

BAT Track and trace Deployment 7 Factories 170 Manufacturing Lines 83 Warehouses/Distribution Centres 5,000 Stock Keeping Units

BAT Track and trace Deployment Success based around GS1 standards To Date 60 Million EPCIS Event Messages 1.7 Billion Unique Tracking ID’s (SGTIN) Per Annum 32 Million EPCIS Event Messages 750 Million Unique Tracking ID’s Daily 110,000 EPCIS Event Messages 2.5 Million Unique Tracking ID’s

Projected Volumes – Supported by Interoperabilty via EPCIS & StandarDs Per Annum 320 Million EPCIS Event Messages 7.6 Billion Unique Tracking ID’s (SGTIN) Daily 1.1 Million EPCIS Event Messages 25 Million Unique Tracking ID’s ALL information is sent to single Track and Trace repository by Factories and Warehouse by BAT, partners and Third Party Logistics as EPCIS messages

Implementing Track and Trace Solutions Requires Lessons Learned Implementing Track and Trace Solutions Requires Time, resources, commitment and persistance Significant investment Business process change Adoption of standards across your business and the industry as a whole ….. A lot of data