Secure marking authentication and tracking tracing to combat

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

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 Track & Trace Product Authentication Drive for the adoption of standards (and approved solutions) to fight illicit trade in excisable products.

SEPARATE PROBLEMS & SOLUTIONS PROBLEM SOLUTIONS Smuggling Counterfeit Tax Evasion Track & Trace Authentication Volume/Tax Verification Regulatory Response: • EU Tobacco Products Directive • FCTC Illicit Trade Protocol

REGULATORY REQUIREMENTS Stick Pack FCTC Protocol Carton Master Case EU Cooperation Agreement TPD Security Feature (Overt/Covert Authentication) TPD (Beyond st 1 Customer) Pallet Manufacture On site Distribution warehouse Centre External Distributors/ Wholesalers Retail Outlet Consumer

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

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

EPCIS DATA CAPTURE COVERING MANUFACTURING & SUPPLY CHAIN EVENTS DCTA has implemented GS 1 Identification Standards GLN SGTIN SSCC DCTA has implemented GS 1 Data Carriers for Carton, Mastercase and Pallet Data. Matrix GS 1 128

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 8

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 GS 1 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

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