When this route makes sense
The packaging-supplier route is a first-class option, not a fallback. There are several situations where it’s the right answer rather than an in-factory install.
- Low-volume programmes. When the annual coded-pack volume doesn’t justify the operational footprint of an in-factory install, supplying codes to a supplier is more proportionate.
- Pilots and proofs-of-concept. When a brand wants to test a unique-coding mechanic before committing to ACGs across factories — the supplier route lets you de-risk the idea first.
- Production-line constraints. Some setups don’t accommodate an ACG (line speeds, printer compatibility, factory layout). The supplier route works regardless.
- Brand preference for inside-pack printing. Some brands prefer the code printed inside the pack for aesthetic reasons, particular product formats, or a specific risk profile they want to maintain.
- Multi-factory or distributed supply. Where production is spread across many smaller facilities, working through a single packaging supplier can be operationally simpler.
How it works
The mechanics are straightforward and proven — we’ve been operating this route for years alongside our in-factory deployments.
- You give us the parameters of the run — the volume of codes needed, the destination supplier, the format and any campaign-specific metadata.
- We generate the codes algorithmically using the same proprietary multi-cipher algorithm used in the ACG. Each code is unique, non-sequential and unguessable.
- We deliver the codes to the supplier in the format they require — encrypted in transit, with delivery confirmation. The supplier prints them on the pack as part of their normal run.
- The codes are simultaneously synchronised with our cloud validation service so they’re ready to be redeemed the moment the packs reach the shelf.
- We handle validation, fraud monitoring, the API for your agency, and consumer support — exactly as we would for the in-factory route.
What stays the same. Algorithmic generation. Cloud validation on AWS. Fraud monitoring and optional AI Vision audit workflows where the campaign risk profile warrants them. The API for your agency. The Consumer Support Panel. The audit trail and security architecture. The supplier route only changes where the code gets printed — not anything else.
In-factory vs packaging-supplier — a comparison
| In-factory (ACG) | Packaging supplier | |
|---|---|---|
| Cost per million coded packs | Circa 80% lower | Higher |
| Lead time to launch a campaign | Days — codes already on packs | Weeks to months |
| Code position | Outside, beside the BBD | Inside the pack |
| SKU / production-line metadata | Captured per pack | Limited |
| Pay-on-use commercial model | Yes — only pay for codes used | Per-coded-pack regardless of use |
| Setup effort | Factory audit + 10–15 min install per line | Minimal — supplier prints as normal |
| Fits low-volume programmes | Less proportionate | Yes |
| Validation, fraud monitoring, API, support | Identical | Identical |
Security on the supplier route
The supplier route necessarily involves passing the code file from Hive IP to a third party (the supplier) so they can print it. We treat that hand-off carefully.
- Files are encrypted in transit using industry-standard encryption.
- Delivery confirmation is obtained from the supplier and the file format verified before the run.
- The codes within the file are non-sequential and unguessable — even if a file were intercepted, the codes can only be redeemed by going through Hive IP’s validation system.
- Each code can still only ever be redeemed once, and the audit trail flags any suspicious entry behaviour.
The closed-loop benefit of in-factory printing — that no code file ever exists outside Hive IP’s systems — is unique to the ACG route. For most supplier-route programmes, the controlled hand-off above is more than secure enough; for higher-stakes campaigns, the in-factory route is the answer.
Choosing the right route
Most of our customers run a mix — in-factory ACGs for their core, high-volume promotional programmes and the supplier route for specific lower-volume or pilot campaigns. The two routes co-exist on the same Hive IP infrastructure, so a brand can use both without operational complexity.
If you’re unsure which fits your programme, the simplest path is a quick conversation. We’ll ask about your volumes, your campaign cadence, your factory setup and your supplier relationships, and recommend the right route — or a combination — for your situation.