Anti-Diversion
Solution

Anti-Diversion

Ensure that goods are sold to verified countries, channels, and customers.

Problem

Product Diversion undercuts brands & manufacturers

Diversion occurs when authentic products are sold outside of an authorized distribution chain, in unintended markets, or unauthorized places. Diverted products can also be diluted, old and expired, and unsafe for consumption. These products are not only a risk to your customers’ safety and damaging to your brand value, they can also lead to embarrassing claims and costly settlements. Diversion of products from low-priced markets to high-priced markets results in margin erosion and gray market activity.

  • Lack of visibility into where and when diversion occurs
  • Tracking gray market dealers is an expensive, time-consuming, and often difficult process that can be quite demanding
  • Manufacturers and Brands lose margins and new market opportunities from unauthorized arbitrage channels
  • Consumers have little assurance that the product is genuine and safe
  • Limited assistance from large e-commerce companies in improving the situation
Product Diversion undercuts brands & manufacturers
Solution

Prevent product diversion by leveraging a network.

Provision and administer incentive controls alongside rebuilding the Identity Model for Products and Tackle Product Diversion.

Chronicled has a three pronged approach to tackling diversion: Incentives-based controls, secure chain of custody, and secure asset identities. Chronicled’s contracting and rebate protocols can help management and enforcement of incentives to channel partners to ensure sales to authorized partners. Channel partners prove authorized sales to their vendors in order to receive incentives. This is made seamless by our blockchain-based protocols. The solution is strengthened further by the use of secure asset identities -- ranging from overt to covert, embedded to aftermarket -- with blockchain registrations and chain-of-custody to create an unprecedented link between the physical and digital realms. Brands who insist on a network-based approach to tracking product movements are able to identify where in the chain diversion has occurred - and intervene appropriately. The anti-diversion Solution integrates with existing ERP systems for greater oversight. Utilize existing identifiers or even better provision secure ones.

Areas of Application

Industries that can benefit

  • Cosmetics and Luxury Beauty Products
  • Professional Haircare Products
  • Professional Skin Care Products
  • Personal Care Products
  • Vitamins, Supplements, Nutraceuticals
  • Pharmaceutical Drugs
  • Consumer Electronics
  • Food
  • Wine and Spirits

Some of the industry regulations where this solution can help

Success Story

Fighting diversion with the world’s largest CPG brands

Chronicled has teamed up with Systech Unisecure to offer a joint solution to the personal care products industry -- specifically, professional hair care products and cosmetics. The solution combines Systech’s proprietary Unisecure technology, which utilizes existing packaging design elements to create a secure, unique, and covert identifier on each individual product, with the extended trust layer of a blockchain to track physical and digital chain of custody. This allows brands to pinpoint exactly when and where diversion has occurred.

Learn more
Product Diversion undercuts brands & manufacturers
Blog Posts

The Cosmetics And Personal Care Industry Needs A Makeover. Here’s How Blockchain Can Help

Press Articles

Combating Illicit Markets With Blockchain: Smart Supply Chains Solutions

Press Articles

Chasing a Moving Target for Counterfeiting and Illegal Diversion