Use Case – Tamper-Proof Laser ID in Mechanical & Plant Engineering
Focus: OEM manufacturers whose components and systems are subject to global counterfeiting
(All markings via laser – no ink, no labels)
Executive Summary
Product piracy costs the German mechanical and plant engineering sector over €6.4 billion annually, affecting 72% of all companies. With permanently laser-engraved UIDs, an inline scanning workflow, and an automated warranty shield, OEMs can eliminate counterfeit components from shipping to after-sales service.
The results:
–60% audit effort
+70 percentage points higher counterfeit detection rate
–35% equipment downtime
ROI in under 3 months
All without ink, labels, or consumables.
Challenge
- Financial Damage & Market Distortion
Product counterfeiting causes an estimated €6.4 billion in annual revenue losses for the German mechanical and plant engineering industry.
72% of companies are affected, with one in four reporting repeated imitation of their products.
- Safety & Liability Risks
41% of counterfeit parts pose risks to human safety or machine operation; more than half jeopardize reliable functionality.
OEMs remain liable if a supposedly "genuine" part fails in the field—even if it turns out to be a fake.
- Global Supply Chain Vulnerabilities
87% of counterfeit parts originate from China, followed by 26% from India.
Gray market imports bypass standard incoming inspections, and authenticity checks are time-consuming and costly.
- Business Impact at the Customer Site
Unplanned downtime can quickly exceed €90,000 per hour of lost production.
OEMs face rising warranty and goodwill expenses, brand damage, and lost aftermarket revenue.
Solution Approach
| Module | Core Functionality | Immediate Business Impact |
|---|---|---|
| Tamper-Proof Laser UID + DataMatrix | Permanent direct part marking (UID + 2D code) on all safety- and function-critical metal components – without ink or labels. Laser engravings cannot be removed or painted over and remain scannable even when exposed to oil, heat, or chemicals. | • Unique “birth certificate” for every original part• Counterfeits detected at first scan |
| Scanning Ecosystem | • Inline tunnel scanners verify up to 3 parts/sec at goods receipt• Assembly handhelds validate part combinations in-line• Service app enables real-time checks via smartphone by the customer | • Zero delay on the shop floor• Instant alert in case of UID mismatch |
| Compliance & Warranty Shield | UID is automatically cross-checked with the OEM database during claims. Unauthorized parts void warranty eligibility. | • Significantly reduced goodwill and liability costs• Audit-ready documentation (ISO 9001, CE) |
Practical Use Case
| Process Step | Scan Point & Technology | Direct Business Impact |
|---|---|---|
| Inbound Inspection | 3D camera gate reads DataMatrix codes in-line (< 0.3 s per part). | Counterfeit components are blocked before entering inventory. |
| Pre-Assembly | Handheld scanner confirms UID match between base module and subassembly. | Prevents part mix-ups and incorrect assemblies. |
| Final Assembly / End-of-Line Testing | Fixed scanner verifies completeness and serials before testing. | Test protocol links each UID to its verified performance data. |
| Shipping | UID scan auto-generates a digital Certificate of Conformity (CoC). | Customer receives OEM-signed authenticity certificate. |
| Field Service | Mobile app (iOS/Android) reads UID during service call. | Counterfeit → Warranty automatically denied;Original → Service report generated instantly. |
Scope & Level
Production Line: 1 line (electric drive modules)
Volume: 2,000 critical components per day
Setup: 1 tunnel scanner, 4 handhelds, 1 service app
Stakeholders
Quality & Compliance Lead (Project Owner)
Production Manager (Shop floor integration)
IT / MES Administrator (Interface setup)
Head of After-Sales (Warranty Shield integration)
Supplier Development Lead (Tier-1 UID compliance)
Trigger
12% increase in goodwill costs (2024)
ISO 9001 recertification in 9 months
Board-level goal: “Zero Counterfeit” by 2026
Key Performance Indicators (KPIs)
Audit Preparation Time
Counterfeit Detection Rate
Unplanned Downtime
Goodwill & Warranty Costs
(Key Performance Indicator, delta, baseline, result)
Context & Assumptions: 72% of machinery manufacturers are affected by counterfeits; Annual industry damage: €6.4 billion (source: VDMA); Over 50% of counterfeits pose direct operational or safety risks; Average downtime cost: €14,200–€90,000 per hour (EU Automation / Senseye)
Business Impact & ROI
| Value Lever | Relevant Cost Driver | Before Laser-ID | After Laser-ID | Avg. Annual Savings |
|---|---|---|---|---|
| Prevented Downtime | Unplanned line stops due to faulty components (avg. €90,000/h) | 14 hours/year | 6 hours/year | approx. €720,000 |
| Goodwill & Warranty Claims | Claims linked to gray market parts | €2.2 million | €1.2 million | €1.0 million |
| Incoming Quality Inspections | Manual sampling & lab analysis | €180,000 | €50,000 | €130,000 |
| Audit Preparation | ISO 9001 / CE compliance documentation | 50 h × €65 | 20 h × €65 | €20,000 |
| Total Annual Benefit | ≈ €1.87 million |
Investment Scope (Pilot Project)
- Laser marking station + fixture: €140,000
- Tunnel scanner (goods-in check): €120,000
- 4 handheld scanners + service app licenses: €40,000
- MES/ERP integration & training: €50,000
- Total CAPEX: ≈ €350,000
- Payback: < 3 months
- Year 1 ROI: ≈ 430%
Implementation Roadmap
| Phase | Duration | Key Deliverables | Primary Stakeholders |
|---|---|---|---|
| 0 – Assessment | 2 weeks | Part criticality mapping, spec sheet, refined CAPEX | Quality Lead, IT, OEM Partner |
| 1 – Pilot Setup | 8 weeks | Laser station in tool shop + tunnel scanner at goods-in live | Production, Supplier Quality |
| 2 – Shop-Floor Roll-In | 6 weeks | Handhelds in pre-/final assembly, live dashboard | Production, IT/MES |
| 3 – Warranty Shield Go-Live | 4 weeks | Service app release + CRM API connection | After-Sales, Legal |
| 4 – Supplier Onboarding | 6 weeks | UID spec rollout to Tier-1, initial audit | Procurement, Supplier Development |
| 5 – Audit Ready | 4 weeks | ISO/CE documentation pack, mock recall | Quality Lead |