The case is titled “Protecting public health and reducing the availability of illicit tobacco products through the establishment of an EU-wide supply chain control system” and presents the EU Tobacco Directive (EU TPD) traceability system. This system is a tool for authorities in implementing their tobacco control policy, ensuring compliance with the FCTC regulation. According to the case study, the economic and social benefits of this solution are estimated at EUR 4 billion per year, with an estimated 20% potential reduction in illicit trade in tobacco.

Dentsu Tracking, part of Dentsu Aegis Network, designed the technical controls necessary for this platform, to give effect to the EU TPD and its secondary legislation as per the World Health Organization (WHO) FCTC requirements.

Philippe Castella, Managing Director, Dentsu Tracking said,

“We are very proud to feature in the case and to continue to operate and expand this platform together with the European Commission. Despite the scale and volume complexity, the entire system was brought to life in less than 5 months, so it is really an innovation milestone and also a celebration of the Member State and stakeholder collaboration that made it all possible.”

As many as 1 in 10 cigarettes and tobacco products sold worldwide are illicit, and the impact on society is huge, included billions of lost tax revenue due to duty evasion and significant impacts on youth consumption and public health due to illicit products available at aggressive prices. The case study addresses this challenge via a traceability platform.

The platform enables the authorities to follow the movements of every packet of cigarettes sold or produced in the EU along every step of the supply chain, with real-time reporting and automatic data controls.

The case study shares the early results since the system launch last year.

Data-driven solutions to fight illicit trade

In addition to its role in design and operations, Dentsu Tracking also leads the data analysis and business validation of the European-wide data. All product movements are controlled along the supply-chain per the pre-defined rules, and Dentsu Tracking delivers real-time business intelligence services for the Member State authorities.

Karim Ben Dakhlia, Government Program Director, Dentsu Tracking, said:

“This unique consolidated data, captured by the EU Secondary Repository, opens unprecedented opportunities to have an accurate view on tobacco trade and lead to a better understanding of illicit trade patterns.”

According to Dentsu Tracking, the next step will be a deeper investigation with the European Union into data trends and individual case studies from the Member States.

Eric Lequenne, Government Development Director, Dentsu Tracking, said:

“Each Member State has looked at improved efficiency and effectiveness based on the European regulation, and their local health legislation. Members have shared early results including better inspections and better tracking. As a next step, we will work with them to understand their individual experiences in more detail.”

The full case study is available on the OECD website, here. Featured cases will be published in the OECD OPSI “Global Trend reports” (available from now until November 2020).

OECD OPSI

The OECD Observatory of Public Sector Innovation (OPSI) platform exists to promote innovation through practical guidance for governments. Cases were submitted in response to the OECD OPSI ‘Call for Innovation’. Accepted cases feature on the OECD platform to promote innovation across the public sector.
Contact the OECD OPSI for more details.

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