A wine company uses barcode technology for traceability

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A wine company uses barcode technology for traceability

China’s wine industry has a long history, with a large consumer group and a vast consumer market. In recent years, China’s alcohol industry has maintained steady growth. With China’s accession to the WTO and the acceleration of globalization, the wine industry is also facing opportunities and challenges from all over the world.

In the face of challenges, wine companies are also actively exploring and beginning to continuously expand their market channels, striving to narrow the distance between the company and the market, while improving the efficiency of distribution and reducing transportation costs. How to more effectively manage subordinate organizations and improve the efficiency of customer orders; how to rationally allocate goods and reduce various logistics costs (transportation costs, storage costs, etc.); how to fully understand local business data to achieve information management in the wine industry, these are all wine Industry enterprises urgently need to solve problems.

On the other hand, since the counterfeit spill case in Shanxi was exposed in 1998, alcohol companies have adopted anti-counterfeiting technology as a weapon to prevent the negative effects of counterfeit and inferior alcohol. How to use advanced anti-counterfeiting technology to protect wine companies and consumers has become a research topic that has attracted much attention.

1. The most pressing issue: anti-counterfeiting

Counterfeit products have become a worldwide problem. It is not only a problem that manufacturers should pay attention to, but also a problem that the whole society should pay attention to. There are three main hazards to the society of fake wine: The first counterfeiter refills it in an unsanitary environmental factory. The bottled wine is inferior wine that does not meet the product standards, so it poses a great threat to the health of the people: severely it may cause casualties and cause bad social impact. The drug and alcohol case in Shanxi a few years ago was one of them. Second, when consumers find that they are drinking fake wine, they will refuse to buy the wine of this brand, thereby affecting the corporate image and harming the interests of the factory. If it is exposed by the media, it will aggravate the fear of consumers and seriously damage the brand image of consumer products. Third, in the process of making and selling fake wine, counterfeiters invest extremely low costs to make huge profits, and tax evasion will cause major losses to national property.

Faced with the pressure of fake wine, major wineries are looking for a method that can effectively prevent counterfeiting without adding more costs. In November 1999, the anti-counterfeiting wine bottle cap sold by 3M Company of the United States to a famous Chinese wine industry group was known as the most advanced anti-counterfeiting technology at the time. The first anti-counterfeiting product of choice. But after using it for 3 months, it was cracked by counterfeiters, and the counterfeit products were on the market, making it difficult to distinguish between true and false. The group lost 140 million yuan for this. The cross-century anti-counterfeiting project was forced to stop, and 3M lost its value. 2 100 million yuan in the second phase of the anti-counterfeiting project order, and therefore withdrew from the high-end anti-counterfeiting product market in China. Another example is that laser anti-counterfeiting labels currently occupy a large market share, but laser counterfeiting is well known. It is not uncommon for pirated optical discs bought on the street to have laser anti-counterfeiting labels affixed to them. Laser anti-counterfeiting technology is due to its low technical content. In reality, it is becoming less and less adaptable to the needs of the entire market.

At present, wine companies use digital anti-counterfeiting technology. The principle of digital anti-counterfeiting technology is to assign a unique anti-counterfeiting number to each product so that the product has an identity card (digital ID). Locally, just dial the hotline or query via the Internet, and you can enter the anti-counterfeiting number on the product as prompted to identify the authenticity of the product.

However, the current digital anti-counterfeiting technology still has some loopholes. Taking wine as an example, the product query probability of Sichuan’s telephone anti-counterfeiting system is now less than 1%. According to the query probability of 1%, every 100 bottles of wine with a query code are sold, of which only 1 bottle will be sold. Was inquired, and the inquiry code carried by the other 99 bottles has not been invalidated. If someone recycles these 99 empty bottles, open the search code in them, and then copy each 10 times. According to the 1% query probability, 9 bottles of these 990 bottles of fakes will be queried. The result of the query is that these 9 bottles are all genuine (actually fake). The probability of finding a duplicate number in 990 bottles is less than 9%. A large number of counterfeit products forged in this way are difficult to detect with this system. This consequence has nothing to do with the specific coding technology used. In addition to the loopholes in the low query rate, the digital anti-counterfeiting system that uses the Internet query has a serious flaw: the counterfeiting group only needs to test on the website in a certain order. Obsolete, leading to system chaos or paralysis. All this is done by publishing a small hacker program on the Internet. Such a security hazard is not a network security issue, but a fatal flaw inherent in the principle of digital anti-counterfeiting.

Many manufacturers hope to apply anti-counterfeiting technology products with high technical content, good anti-counterfeiting performance, easy identification, and low cost. Among many anti-counterfeiting technologies, barcode technology can well meet the needs of the aforementioned manufacturers.

  2. Barcode advantages: systematically solve problems

Chai Yueting, a professor at Tsinghua University and an expert in modern logistics and e-commerce, analyzed to reporters the current problems of alcohol products from production to circulation: The first is the problem of fake alcohol, which is the most urgent problem that alcohol companies need to solve. This is because there is no effective and systematic monitoring, and there are also reasons for wine packaging and anti-counterfeiting methods. The second is the tax issue, because there are fake spills, and at the same time, the supervision of the circulation of genuine wine is not effective, and tax evasion is very serious. The third problem is that my country’s liquor companies have their particularities, covering a wide range from high-end to low-end. Many links from production to circulation and geographical protection have led to chaos in the market.

To solve these problems, two levels are involved: First, the relevant government departments must issue access systems and management standards from production to circulation. Only on this basis can supervision be strengthened and the role of advanced technological means can be brought into play. The second level is the technical level. For example, the application of bar code and Internet technology can realize single product tracking and solve the problem from the root cause. This is one of the most effective ways. Based on this situation, the Ministry of Commerce and the National Development and Reform Commission are planning and implementing projects to solve these problems through barcode or RFID.

Commodity barcode is a kind of commodity code, which is designed for effective management of commodities by computer. If we can reasonably use barcode technology, including reasonable selection of barcode carrier, reasonable selection of printing process, and reasonable selection of printing position, etc., then barcodes can be made anti-counterfeiting. Barcodes used by wine companies have many advantages: the most direct advantage is that the terminal Kawado is very convenient. You can know the authenticity by verifying the barcode or radio frequency tag terminal at the sales office. From the user’s point of view, this is better than the current code. Methods such as anti-counterfeiting should be convenient. It can be designed to stick the bar code between the bottle cap and the sprinkling bottle, and the bottle will be destroyed when it is opened. In order to prevent counterfeiters from printing by themselves according to the coding rules, encryption algorithms can be used to randomly generate codes in the enterprise.

The second advantage is that functions such as production control, quality traceability, and sales supervision can be realized through the information value-added function of the bar code. This is also the most fundamental advantage of using barcodes. It can systematically solve the problems existing in wine companies, which is an advantage that other anti-counterfeiting methods do not have. Because the barcode or RFID has the feature of being able to record information, the barcode or RFID can be placed on the smallest package of wine products, such as between the wine bottle and the bottle cap. In this way, the quality traceability, product tracking and sales supervision of wine can be realized. At the same time, the relevant data in circulation can be recorded through the information and functions of the barcode or RFID. This information can serve as a guide for the production of wine enterprises. This is especially important in the modern production model with decision-making capabilities at the information level.

The third advantage is that it can solve the tax supervision problem at the government management level: according to the third-party system, you can know the output and sales of wine, and you can solve the tax supervision problem.

The problems faced by the wine industry can be solved systematically through bar codes. We hope that as time progresses, barcodes will be able to experience “wine” and new, and provide practical and reliable technical support for wine companies.

  Three, application cases

As one of the largest famous wine bases in China, Luzhou Laojiao Co., Ltd. has developed into a total asset of 2.458 billion yuan, an annual production capacity of 50,000 tons of liquor, a packaging production capacity of 70,000 tons, and a main business income of nearly 1 billion yuan. Yuan, a large listed company whose main business profit reached 461 million yuan. In order to enable products to enter the domestic and foreign markets smoothly, Luzhou Laojiao applied for the registration of manufacturer identification codes as early as 1991 and became a member of the Chinese commodity barcode system. Now all products of the company use commodity barcodes. The application of bar code not only creates conditions for the company’s products to enter the commercial circulation field, but also plays an active role in promoting the internal management of the enterprise.

Use barcode for product information query. With my country’s entry into the WTO, the market has further opened up, and fierce market competition has prompted the company to continue to develop new products. At present, Luzhou Laojiao products have reached hundreds of series and thousands of specifications and varieties. The traditional manual operation and management of products can no longer meet the needs of production and operation. For this reason, the company adopts an advanced computer network office system. With the popularization of corporate office automation and the widespread application of computers, can we use modern technology to manage these thousands of product barcodes and further develop the role of barcodes? The answer is yes. With the help and guidance of the Sichuan Branch of the China Article Coding Center, Huzhou Laojiao used an electronic form to establish the company’s barcode-product information database. The database uses the product barcode as the key to enter all the information of the corresponding product. In order to ensure the accuracy of the data, they conducted repeated checks, and at the same time, the newly-added commodity items were classified and registered according to the barcode and film, and they were entered into the computer in time to ensure that the database information was updated in time.

After adopting computer management, not only the occurrence of duplication is eliminated, but also the work of various business departments of the company is provided with great convenience. Nowadays, as long as each business department knows the name of a certain product or a certain piece of information, it can easily find its product barcode on the company’s internal computer local area network, and it will certainly be able to find various information about the product. It has truly realized product information sharing and promoted office automation within the company.

  1. Use barcodes for product entry and exit management

At present, Luzhou Laojiao has 5 large-scale finished product warehouses, and the finished wine storage capacity has reached 4,000 tons. In the past, product entry and exit management used manual copying methods, which was slow and error-prone, and it was difficult to summarize data, which seriously affected the company’s development. In order to change this backward situation, the company decided to use bar code technology for warehouse management. The company equips each finished product warehouse with barcode scanners and networked computers, and requires that all products in the warehouse must have barcodes, including single product barcodes and logistics barcodes used for warehousing large boxes. Nowadays, warehouse custodians only need to use scanners to scan the barcodes on the products in and out of the warehouse, and their product information can be displayed on the computer monitor and transmitted to the company’s various business management departments in the local area network.

With this system, the warehouse clerk can check in real time whether the scanned product information is consistent with the in and out of the warehouse declaration, preventing product cross-stocking, and can keep track of the inventory situation at any time, and dynamically control the company’s production and sales. The department can adjust the production or sales plan in time according to the dynamic information of the inventory; the transportation department of the company can understand the situation of the goods shipped in the inventory in real time, and deal with the transportation errors in time. The application of bar code not only greatly improves the efficiency of warehouse management, but also promotes the development of the company’s comprehensive business.

 2. Use barcodes for product anti-counterfeiting and sales supervision

As one of the four famous liquors in the country, Luzhou Laojiao has been loved by consumers for a long time. Because of this, it has also become the target of many counterfeiters. Due to the proliferation of counterfeit products in the market for a long time, causing huge losses to companies and consumers, anti-counterfeiting and anti-counterfeiting has become a top priority for companies. After investigating the anti-counterfeiting methods and anti-counterfeiting functions of various anti-counterfeiting systems on the market, the company finally decided to choose barcodes as a breakthrough, mainly because the barcodes are easy to scan and detect and the cost is low. To this end, the staff designed the product’s bar code anti-counterfeiting label, the label is printed with a bar code and the corresponding two sets of 17-digit digital codes. First scan the barcode of the anti-counterfeiting label at the production site. By comparing the barcode product database, you can view the detailed information of the product, including product name, alcohol content, bottle volume, packaging specifications, etc., and get the corresponding The query code and verification code. After the product goes on the market, consumers and distributors can obtain the corresponding 17-digit number through the cover film on the anti-counterfeiting label of the Luzhou Laojiao series of products, and then dial the corresponding phone number to inquire and verify the authenticity of the product.

The barcode anti-counterfeiting label is also conducive to sales supervision. The company can easily count the types of products sold, sales volume, sales date, and when a product is sold to a dealer, which is very beneficial to sales supervision. The use of bar code anti-counterfeiting labels and the operation of the telephone query system protect the interests of consumers, improve the reputation of Luzhou Laojiao products, and play a positive role in expanding market share. After the adoption of this anti-counterfeiting system, the number of counterfeit and counterfeit products seized on the market has been reduced by more than 10 million yuan, and the economic benefits are very obvious. At present, Luzhou Laojiao is working hard to improve employees’ bar code awareness, further improve and expand bar code application projects, and create more economic benefits for the enterprise.

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