Solution combines QR Code scanning and holograms on labels to prevent counterfeiting and grey market diversion.

Authenticity verification for machinery parts

Tokyo – Toppan Printing (Toppan), a global leader in communication, security, packaging, décor materials, and electronics solutions, will provide a comprehensive security solution to global construction machinery company Hitachi Construction Machinery Co., Ltd. (Hitachi Construction Machinery) (TYO:6305) for labels on the packages of aftermarket parts sold by the Hitachi Construction Machinery Group. The solution, provided from January 2021, will combine Toppan’s anti-counterfeit holograms with its ID-NEX® service, which facilitates authentication and traceability through the use of QR Codes(*1) that can be scanned with smartphones.

Counterfeiting and grey market diversion are causes for considerable concern for many industries and lead to significant damage and loss. The quality of the majority of counterfeit products is vastly inferior to that of authentic goods, and in the construction and transportation machinery sectors, defects or failures during operation can result in serious and potentially life-threatening accidents. Hitachi Construction Machinery is therefore adopting Toppan’s ID-NEX® authentication and traceability service to address the issue and ensure robust product management throughout the distribution process. Advantages offered by Toppan’s solution include an extensive track record in effectively combating imitation goods and illicit distribution, the ease of authentication with a smartphone, and the reduction in costs made possible by a cloud-based service. In addition, holograms enable verification of authenticity with the naked eye and help prevent label counterfeiting.

In addition to the construction and transportation machinery sectors, Toppan is expanding the use of ID-NEX® and related security solutions in such sectors as vehicle parts, fast-moving consumer goods, and cosmetics. The ID-NEX® authentication and traceability service provides cloud-based, end-to-end management of product life cycles to support brand protection, digital warranties, campaign entries, and more.

Toppan offers a wide range of media and methods, including security holograms as well as high-security RFID tags, versatile QR Codes, and bar codes for assigning unique IDs. Provision via the cloud reduces initial costs and the lead time for adoption of the service by eliminating the need for development of individual applications and systems. Holograms can be applied to product number labels to enable visual confirmation of authenticity. Toppan makes this possible with S-White®, a hologram whose black and white parts reverse when the viewing angle is rotated through 90 degrees, and a demetallization(*2) process used for applications such as banknotes. Thermal transfer onto labels for parts also helps to prevent fraudulent activity by making holograms difficult to remove or reuse.

“Construction machinery is an essential part of infrastructure and is used for long periods after purchase, sustained by repeated part replacement and maintenance to ensure stable operation,” said Kenji Iitsuka, General Manager, Parts Planning Department, Spare Parts Division, Life Cycle Support Group at Hitachi Construction Machinery. “This means that providing aftermarket parts is a very important business for us. Using Toppan’s ID-NEX authentication and traceability service will enable our customers throughout the world to confirm the authenticity of the parts we supply and use them with greater reassurance and peace of mind. We also aim to leverage enhanced traceability and distribution efficiency for parts to further expand value chain business in the future.”

“Toppan’s DX Design Division launched in April last year, and we are using digital transformation to enhance efficiency for routine work, maximize added value for products based on data analysis, and provide solutions for both our customers and wider society,” said Masanobu Koyama, Senior General Manager of Business Development in the Security Business Center of Toppan’s DX Design Division. “We are delighted that Hitachi Construction Machinery has chosen ID-NEX, a cloud-based ID authentication service that is central to our DX business, and we are confident that we can provide high added-value for our customers’ products.”

1. QR Code is a registered trademark of Denso Wave Incorporated.
2. Demetallization is a security processing technology for creating fine patterns by using etching to partially remove metal sections of holograms.

For more information, visit https://www.toppan.com/en/ or follow Toppan on LinkedIn https://www.linkedin.com/company/toppan-printing/.