What is Product Traceability?

Product traceability is the ability to identify, track, and trace products as they move along the supply chain. The product information is linked to a traceability system with the help of barcodes which allows businesses to extract information on Who (with whom), What (is the product), Where (with which trading partner), When (at what time), and Why (why was it scanned). Authorised people can scan the barcodes to know all these details using a scanner.

This empowers businesses with quality control, systematic information sharing, more transparency, and continuous monitoring of products in the market. The role of traceability is overarching, it benefits not just the manufacturers but also the retailers, distributors, and the end consumers.

Benefits of Product Traceability for Consumers

These are the Some Types of Benefits of Product Traceability for Consumers

Ensures Food Safety

Product traceability allows businesses to ensure the quality and safety of food products. By tracking the product journey, right from production to transportation, businesses can trace food contamination and recall the lot quickly.

Provides Nutritional Information

With product traceability, brand owners can share important product information such as direct human contact with food, product authenticity, hygiene checks, etc. with the consumers. Consumers can leverage this information to make an informed purchase decision and be safeguarded from adulterated or counterfeited products.

Supports Ethical and Sustainable Practices

Consumers can check if the products are produced in an environmentally safe and socially responsible environment by tracing the origin of food products. They can do their part in fostering a sustainable future by purchasing products that are not made using toxic raw materials or are detrimental to the society and environment.

Builds Trust & Confidence

Barcodes are a source of reliable information which can be scanned at any point and by anyone boosting the trust and confidence of the consumers.

Facilitates Recall Management

A robust recall process calls for transparency in the supply chain. When product information is readily available it will facilitate better and timely recall management practices for products. When product damage or contamination is identified at an early stage, cases of consumer dissatisfaction will be fewer.

Reasons why consumers demand product authenticity

  • Health protection
  • Safety
  • Performance
  • Values and ethical reasons

Health Protection

Consumers today have become extremely cautious about their health. They are very particular about the type of food products they buy and consume. Barcodes empower such consumers with more accurate information which can be trusted. It provides necessary information such as product ingredients, origin, composition, expiry date, manufacturing date, allergens, nutritional information, and more. This information prevents consumers from consuming products that may affect their health.

Safety

By scanning barcodes on products consumers can know the source of origin, and manufacturing unit, and can verify its originality. This can prevent consumers from purchasing counterfeited products and ensure their safety. Barcodes serve as a guarantee of genuine and safe products to consumers.

Performance

Some products are sold because of the best-in-class performance they provide. Verifying product authenticity of such products prevents consumers from buying from inauthentic sources. In a market where suppliers are numerous and can provide multiple copies of an original product, it becomes even more crucial to ensure the product is authentic.

Values and ethical reasons

Consumers want to support businesses that work with integrity and are aligned with a greater good such as sustainability. Consumers therefore identify the authenticity of the products and do not buy any counterfeited products.

Authenticity beyond the product

Products are the mouth of the brand. They speak on behalf of the companies and when counterfeited products of such brands exist in the market it deteriorates the brand image. Consumers develop a negative impression of the brand in their mind which in turn impacts the revenue and profit of the brand.

Therefore, authenticity plays a dual role; it empowers consumers and at the same time differentiates businesses from other counterfeited products available in the market. This results in building healthy long-term business and consumer relationships, supreme customer satisfaction, and goodwill for the brand.

What are some ways that businesses use to authenticate their products?

  • Verified by GS1 – Verified by GS1 is a global platform that can be used to scan or verify product authenticity. Consumers or businesses can enter details of the GTIN, Global Location Number (GLN), and other GS1 ID keys,  in the platform to know whether that product is verified by GS1 or not.
  • Smart Consumer App – Smart Consumer App allows consumers to validate the information source easily. Consumers can scan barcodes and verify details such as manufacturer, origin, and nutritional information. Brands can leverage the platform to directly promote their products to consumers.
  • Authorised Barcodes – When registering for barcodes companies should always register with authorised institutions only. In India, it is GS1 India which provides barcodes that comply with global best practices and standards. Barcodes issued by GS1 are accepted worldwide as well.

Why do businesses need to protect their products from counterfeits?

Counterfeited products are a grave danger to industries, the economy, innovation, trade, health, safety, and the environment. It also impacts the reputation of a brand and decreases the satisfaction levels among consumers. Every year, the Indian economy incurs losses in crores because of the prevalence and existence of counterfeited products in the market. Lack of consumer awareness further makes the situation critical making it extremely important to adopt a standard-based service to detect and deter the adoption of such products. Product authentication can therefore prove to be a masterstroke in our industry.

Frequently Asked Questions

1. How does product traceability differ from product tracking?

Product traceability is the process of tracing the complete journey of the product starting from the production to the consumer. Tracking refers to keeping a record of the entire product details.

2. Is product traceability mandatory for all industries?

Product traceability is not mandatory in all industries; however, it is advised to have a traceability system in place for all products to streamline operations.

3. Are there specific regulations governing product traceability?

Yes, the GS1 Global Traceability Compliance Criteria Standard provides regulations to build compliance with traceability. It is the basis for ensuring key compliance and traceability protocols to implement a traceability system in the industry.

4. What information is typically included in a product traceability system?

A product traceability system provides data such as quality control results, handling and storage conditions, final routes, distribution channels, and raw materials. This information is crucial in tracking and tracing the product journey.

5. How do companies implement product traceability in their supply chains?

Companies can implement product traceability in supply chains with the help of traceability systems such as Datakart Trace. They can keep complete track of product inventories to ensure they do not send lots earlier than they have been consumed in the markets.

6. How does product traceability benefit retailers?

Retailers benefit from accurate and complete information on product SKUs. This reduces their dependency on third-party sources since they get information directly from a centralised product repository that is being updated almost on a real-time basis.

7. What role does product traceability play in food safety?

Food traceability is the cornerstone of providing consumers with safe and healthy food choices. Food contamination can be identified early which can speed the recall process with traceability. When all safety and regulatory standards are met, consumers will be safeguarded from consuming a contaminated product.

8. Can product traceability help reduce waste in the supply chain?

Yes, by having a comprehensive record of the products in the market, businesses can avoid overstocking and stockouts. This in turn will benefit the environment as less waste will be recorded.

9. Does product traceability only apply to perishable goods?

No, product traceability can be applied to all types of goods, whether they are perishable or non-perishable. Businesses aim to reduce waste, track product journeys, ensure quality, etc. which can all be achieved through a traceability system.

EPC-RFID Technology and the Industries

EPC codes, unique digital IDs for products, revolutionize tracking with RFID technology. They improve supply chain efficiency by enabling real-time visibility and inventory management, benefiting various industries.

What is the EPC Code?

The EPC code, or Electronic Product Code, acts like a unique digital fingerprint for a physical product. Imagine it as a serial number on steroids! This globally unique identifier, developed by EPCglobal, leverages RFID technology to allow for wireless tracking. Unlike barcodes that require a direct line of sight, EPC codes can be read from a distance. This translates to major improvements in supply chain efficiency. Businesses can track product movement in real time, gain instant inventory insights, and even combat counterfeiting – all thanks to the power of EPC codes.

Radio Frequency Identification (RFID): What is it?

Radio Frequency Identification (RFID) is a technology that uses radio waves to wirelessly track and identify objects. Imagine tiny tags attached to products. These tags contain an antenna and a microchip. The antenna catches radio waves from a reader device, which then transmits a signal to the microchip. The microchip, in turn, transmits its unique identification data back to the reader.

This allows for contactless, automatic identification, offering several advantages over traditional barcodes. Here are some key benefits of RFID:

  • Faster and more efficient reading
  • Can read multiple tags simultaneously
  • Works without line-of-sight
  • Can store more data than barcodes

Overall, RFID revolutionizes tracking and identification in various industries, from retail and supply chain to access control and asset management.

EPC Operation: RFID Tags and Readers

The way we track products is undergoing a transformation powered by GS1 RFID technology, which utilises EPC (Electronic Product Code) and RFID (Radio Frequency Identification).

Here’s a breakdown of this dynamic duo:

  • EPC (Electronic Product Code): Imagine a unique digital fingerprint for every product. This standardized code, developed by EPC global, allows for global identification of items. Think of it as a supercharged serial number!
  • EPC RFID Tags: Picture tiny stickers with a microchip and antenna. Attached to the product, these tags store the EPC code. These EPC RFID tags are the workhorses of the system, enabling wireless tracking through EPC in RFID technology.
  • RFID Reader: This device emits radio waves. When the tag’s antenna picks them up, it activates, and the microchip transmits the EPC code back to the reader. This wireless communication eliminates the need for line-of-sight scanning, unlike traditional barcodes.
  • This seamless interaction between EPC codes and RFID technology (GS1 RFID) unlocks several benefits:
  • Wireless Reading: No more struggling with line-of-sight limitations like barcodes. GS1 RFID works from a distance, streamlining the tracking process.
  • Real-time Tracking: Readers can scan multiple EPC RFID tags simultaneously, providing instant product location data. This empowers businesses with real-time inventory insights.
  • Enhanced Efficiency: With real-time data, businesses can optimize supply chain management, improve inventory control, and gain valuable insights into product movement.
  • GS1 RFID, powered by EPC and RFID, empowers businesses to seamlessly track products, leading to greater efficiency, transparency, and improved decision-making across various industries. While EPC barcodes may still be used in some applications, GS1 RFID offers a powerful alternative for situations where traditional barcodes fall short.

EPC Applications in Different Sectors

EPC barcode, paired with RFID technology, are revolutionizing how various sectors manage their products:

  • Retail: Imagine checkout lines that scan your entire shopping bag at once! RFID with EPC enables faster purchases, improved inventory accuracy, and real-time loss prevention in stores.
  • Pharmaceutical Industry: Ensuring medication authenticity is crucial. EPC tracks drugs throughout the supply chain, preventing counterfeits and ensuring patient safety.
  • Logistics & Transport: Real-time tracking of shipments with EPC streamlines deliveries, minimizes delays, and optimizes routes, leading to cost savings and improved customer service.
  • Agriculture & Food: Track farm-to-table freshness! EPC monitors food products throughout the supply chain, ensuring proper storage conditions and enhancing food safety.
  • Manufacturing: Streamline production! EPC tracks components and finished goods in real-time, optimizing production lines and preventing inventory shortages.
  • Healthcare Sector: Improve patient care! EPC tracks medical equipment and supplies, ensuring their availability and optimizing sterilization processes.

These are just a few examples – the applications of EPC technology continue to expand across various sectors, driving greater efficiency, transparency, and safety.

Frequently Asked Questions

1. Can EPC/RFID tags be part of a fabric label sewn into an apparel item?

Absolutely! Special fabric labels can be embedded with EPC/RFID tags, offering a discreet and durable solution for tracking apparel. These labels withstand washing and drying, ensuring the EPC RFID tag remains functional throughout the garment’s life.

2. Do EPC/RFID tags contain information about consumers?

No, EPC codes typically only hold product identification data (e.g., brand, size) and are not linked to specific consumers. Privacy regulations further safeguard consumer data when using GS1 RFID or EPC RFID technology.

3. How EPC is used in RFID?

EPC stands for Electronic Product Code. It’s the unique data (product code) stored on the RFID tag’s microchip. RFID technology allows the wireless reading of this EPC code by an RFID reader, enabling efficient tracking and identification of products using EPC in RFID.

4. What are the concerns relating to the use of RFID?

Some people have privacy concerns regarding potential tracking of individuals through RFID tags. However, EPC codes used in GS1 RFID and EPC RFID applications are usually not linked to specific consumers, and regulations control data collection and usage.

5. How does RFID impact consumers?

RFID can benefit consumers by improving product tracking with GS1 RFID or EPC RFID, potentially leading to faster checkouts, better product information access (e.g., through mobile apps), and improved product authenticity verification. However, some may be concerned about potential privacy issues.

6. Will RFID replace barcodes?

Not necessarily. While RFID offers advantages like wireless reading and storing more data, barcodes remain a cost-effective option for many applications. They might coexist and complement each other, with EPC/RFID being used for situations where barcodes fall short.

7. Is RFID new?

The core concept of RFID has been around for decades. However, advancements in miniaturization and chip technology have led to its wider adoption in recent years, making EPC/RFID a more viable solution for tracking and identification across various industries.

GS1 Traceability Service Enables Complete Track and Trace of Their Products Across the Supply Chain

In today’s consumerist economy, the sale of a good or service is not merely a transaction – it is a brand promise that what is being sold to a consumer is genuine. The idea that a product isn’t what its seller claims it to be is highly detrimental to consumer perception. The trust that is built gradually over time depletes instantly and damages the brand, delivering a possibly fatal blow to future sales.

Long term sales, an important parameter of overall business success, is compromised when a consumer is given a product that is inauthentic, inferior, or unsafe. A brand’s social dimension, defined by the information shared by consumers online and through word-of-mouth, also takes a hit. With their aggressive focus on product data quality, today’s consumers are also acting as activists, taking action against brands that do not deliver on what they promise.

Counterfeit products like medicines, faulty medical devices, contaminated foods and unreliable sourcing practices threaten the safety of the public and erode consumer confidence in the brand and destroy its reputation. 

Counterfeit medications, faulty medical devices, contaminated foods and unsustainable sourcing practices threaten public safety, waste precious natural resources, erode consumer confidence, and destroy brand reputation. If companies refuse to invest in due diligence, they will suffer the brunt of superfast exchange of information about their products on social/ media and its adverse effects on the brand image. Along with affecting those who sell through shopping websites, brick-and-mortar retail will also be affected. Consumers will instantly switch their loyalties to companies who can build and sustain a sense of trust and transparency among consumers. 

Traceability is the ability to verify the history, location or status of an item by means of documentation. In the process of traceability, serialization along with unique identifiers are assigned to consumer goods/complex medical devices as the first step towards complete, end-to-end visibility over supply chains. 

Disruptive technologies, such as artificial intelligence, the Internet of Things, blockchain and collaborative platforms, can take traceability systems to another level by offering detailed reports on any product’s status and movements and creating direct links between the various stakeholders along the supply chain, low taper from producers to end users.

Traceability can be adapted to any industry. In fact, some sectors, such as the pharmaceutical industry, are subject to legislation that requires it, such as the European Union’s Falsified Medicines Directive (EU FMD) and the United States Drug Supply Chain Security Act (DSCSA).

GS1 Traceability Service:

GS1 India, a supply chain standards organization, has launched its traceability service for businesses. The service seeks to provide brands with complete track and trace of their products across the supply chain. 

Created in response to growing demands of establishing end-to-end traceability of the products in the supply chain and the consumers’ questions on the product origin, the service enables brands to gain end-to-end supply chain visibility and an ability to give access to this information to consumers for product verification.

Based on the principles of linking physical movement of good with the information flow, it ensures product information transparency. Besides, traceability also helps in reducing counterfeits by enabling counterfeit detection right at its source.

Empowering Consumers Through the Smart Consumer App

With the rapid growth of e-commerce, detailed & accurate product attribute information becomes more crucial since consumers became highly dependent on what they see online to make purchase decisions.

Additional product information in terms of what is mentioned on the product label, such as food ingredients, consistency, its life, calories, recipes and much more, becomes inaccessible in case it is not provided in product description.

That’s why national repository of product information plays a critical role in storing and sharing consistency, complete, accurate and trusted information on products from across categories. This information gains further trust as it is provided directly by manufacturers/brand owners.

India’s national repository of product information is DataKart, which is also linked to Smart Consumer mobile app that empowers billions of consumers with digitally access of product information.

The Smart Consumer mobile application (free for Android and iOS) is developed by GS1 India, a global supply chain standards organization. It lets consumers scan the product barcode using their mobile phones, to access complete product information before making purchase decisions. Besides product information, the app also provides information about the consumer care details of the company, and an option to file complaints or share product feedback directly with brand owners.

Smart Consumer app also enables consumers to validate product licenses, including FSSAI, AGMARK, BIS, etc.

Please note that only product barcode numbers starting with 890 could be scanned using the app since these are unique product IDs, provided by global supply chain standards organization – GS1 India.

Additionally, regulatory compliance authority on food – FSSAI & AGMARK, recently directed food companies to upload their product information along with their license numbers and expiry dates, on the Smart Consumer mobile app.

To know about how this app works, click on this link

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