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Category: Traceability

Ensuring Freshness from Farm to Fork With GS1 Barcodes

Posted on by Heena

The human body requires food to gain energy for survival and sustenance. Consumed food is broken down inside the body to provide nutrients and release energy. A consistent, balanced, and healthy diet helps regulate energy levels and keeps us active throughout the day. However, with rising concerns over food adulteration and unethical trading practices, food quality is often compromised. In this article, we will explore the challenges faced by the food industry and possible solutions. Readers will learn the importance of GS1 barcodes in maintaining food quality and understand how traceability plays a key role in ensuring freshness from farm to fork.

What is Farm to Fork Freshness? 

‘Farm to Fork’ refers to the complete journey of a food product, starting from when it is grown on a farm till it reaches the consumer’s plate, with a focus on preserving the freshness of the product at every stage. This underscores the importance of proper handling, storage conditions, and transportation to preserve flavour, quality, nutritional value, and safety. 

The adoption and ultimately successful implementation of this concept play an important role in the entire supply chain management. This helps to ensure food’s original nutritional value remains unaffected and that the food we consume is not only healthy and tasty but also safe. Food quality is best preserved only when there is less time between harvest and consumption. To ensure this, traceability plays an important role by helping track the complete journey and identifying complications at the earliest. Barcodes facilitate this traceability from farm to fork. Let’s first understand what barcodes are, their importance and how they play a role in streamlining the food supply chain.

The Role of Barcodes in the Industry

Barcodes are machine-readable representations of data. They can either be one-dimensional (1D) or two-dimensional (2D). Barcodes contain a unique identification number called the GTIN (Global Trade Item Number), which helps uniquely identify every product or Stock-keeping unit (SKU) being traded. The GTIN is composed of four components – Country Prefix, Company Code, Product Code and Check Digit. Find below the function of each of them – 

  • Country Code— A country code is a prefix allotted by GS1 Global to the member organisation. India has ‘890’ as its country prefix.
  • Company Code – Company code is allotted by GS1 member organisations to identify the company registered for barcodes uniquely. Country code and company code together form the Global Company Prefix (GCP).
  • Product Code—A product code is a unique identifier for a specific product or item, used to distinguish it from other products in a catalogue or inventory system. It enables efficient tracking, management, and classification of goods within supply chains.
  • Check Digit: The check digit is a calculated number that is appended to a series of digits (like a barcode or identification number) to verify the accuracy of the entire number. It helps detect errors in data entry, ensuring the integrity and reliability of the product identification system.

Barcodes serve as a key tool in the supply chain as they provide a quick and accurate method of tracking and tracing the complete journey of products with a simple scan. Below are some reasons for how they help –

  1. Automated Data Capture – Barcodes can be scanned via hand-held scanners, machine readers, and smartphones (in the case of 2D barcodes), automating the data capture process. This automatic data capture also mitigates errors caused by manual data entry. 
  2. Real-time Information—Barcodes give every supply chain stakeholder access to authentic, real-time information throughout the product’s journey. Upon scanning, you can access product data on manufacturing details, price, expiry date, etc., simplifying the decision-making process. 
  3. Improved Visibility – Businesses can have end-to-end visibility of product flows. For example, if a product is recalled or has an issue, barcodes make it easy to trace every affected item throughout the system, even down to the individual unit.
  4. Regulatory Compliance – Regulatory requirements often demand traceability in industries like pharmaceuticals, food, and logistics. Barcodes help businesses comply with these regulations by enabling them to meet regulatory requirements. 
  5. Enhancing Order Fulfilment – Barcodes play an important role in ensuring quick and accurate identification of products in a warehouse, empowering staff to efficiently locate and ship products to the concerned customers or stores. 

Exercise Precautions before Purchasing Barcodes 

GS1 barcodes are the only authorised barcodes across the globe. No other barcodes can provide the same interoperability, structure, and standardisation required for global trade except GS1 barcodes. GS1 India is the only organisation authorised to issue barcodes (starting with ‘890’) to companies in India; no other organisation is authorised to issue barcodes starting with ‘890’. Companies must stay vigilant and purchase ‘890’ barcodes from GS1 member organisations only.

Farm to Fork Traceability in the Indian Army

With their ability to facilitate traceability, GS1 barcodes play a vital role in ensuring transparency throughout the product’s farm-to-fork journey.  Let’s understand the role of barcodes in facilitating traceability and guaranteeing food freshness with the example of the Indian Army Food Traceability (IAFT) project.

About IAFT

IAFT is an initiative under which the Indian Army has leveraged GS1 standards to ensure that only quality and healthy food reaches soldiers. This initiative is based on the FSSAI recall and traceability guidelines. The Indian Army has directed its food suppliers to comply with DataKart Trace – a traceability solution provided by GS1 India. 

How Does it Work?

With DataKart Trace, the Indian Army carries unit-level tracing and tracking of food supplies to the Indian Army. Every data related to the movement of army ration items in the supply chain gets traced with the scan of barcodes. The process begins with careful supplier selection, followed by storage and monitoring under optimal conditions, and ends with the delivery of food to military units, often in remote areas.

Outcomes Achieved

Here are some results achieved by the Indian Army with the implementation of GS1 barcodes and the adoption of a traceability solution –

  • Increased food safety – Reduced risk of spoilage or contamination, and allowed for quick identification and resolution of any issues.
  • Enhanced supply chain management – Promoted transparency and ensured accountability by documenting every stage of food handling.
  • Availability of Healthy Food – Soldiers benefited from safe, nutritious, and high-quality food because of strengthened trust and efficiency in food handling and delivery.

Applications of GS1 Barcodes across the Supply Chain

GS1 barcodes benefit the entire supply chain by providing authentic and accurate product information at every stage. 

Here’s how each stakeholder benefits from GS1 barcodes –

  • Farmers: QR codes, a type of 2D barcode, are present on pesticides and insecticides, ensuring farmers receive genuine and quality products to harvest crops. 
  • Transporters: SSCC (Serial Shipping Container Code), a type of 1D barcode, is applied to shipping containers/pallets to identify and track the products throughout the product’s supply chain journey. Unlike the standard 1D barcodes, SSCC can contain more information, such as expiry date, manufacturing details, batch/lot number, etc. 
  • Retailers: At point-of-sale, barcodes help streamline inventory management and help retailers follow sustainability and waste reduction practices by promoting the First Expiry, First Out (FEFO) principle. 
  • Consumers: With the Smart Consumer app, consumers can scan the product’s barcode (in case of 2D) and get detailed insights on products they wish to buy. They can also list the product’s GTIN on the ‘Verified by GS1’’ page to validate product details, empowering them to make smarter and more informed decisions. 

Conclusion 

With industries transitioning to 2D barcodes, the adoption of traceability measures will improve and escalate. With just a simple scan using a smartphone, stakeholders will be able to get information on the entire product’s lifecycle. People will be able to fetch information on how and when the product was manufactured, promoting better decision-making. To get authorised barcodes, companies can get registered with GS1 India, or simply click this link here – https://www.gs1india.org/content/get-a-barcode/

Frequently Asked Questions

1.What is food traceability, and why is it important?

Food traceability refers to tracking the complete journey of food products from manufacturing to the final product reaching the consumers. 

2. How do GS1 barcodes support farm-to-fork traceability?

GS1 barcodes can be scanned and used at each supply chain level by the company to know the exact details about their products, thus promoting farm-to-fork traceability. 

3. What is the role of GS1 standards in food product recalls?

GS1 barcodes can be scanned to identify supply chain issues at the earliest and take corrective measures.

The Role of Product Traceability Solutions in Food Safety and Compliance

Posted on by Rahul Kumar

Traceability in the food industry refers to the ability to track any food item through all stages of production, processing, and distribution. It ensures that food items are traceable from the source until it reaches the end-consumer, allowing stakeholders to trace back to the origin of products, understand the journey, and manage the food quality throughout the supply chain. The importance of traceability for food safety and compliance cannot be overstated, as it helps prevent foodborne illnesses by enabling a quick response to contamination issues and enhancing the overall quality control processes.

 

Understanding Traceability in Food Production

Food traceability involves meticulous record-keeping and the use of various technologies to track the production, handling, and distribution of food products. It encompasses the history, location, and journey of products, providing detailed insights into the production processes and supply chain logistics. This systematic approach helps in identifying and addressing potential risks at any point in the food supply chain, thereby protecting consumer health and ensuring compliance with regulatory standards.

 

Why Traceability Matters for Food Safety

Traceability is essential for food safety as it helps in identifying the source of contamination in the event of food safety incidents. For instance, if a particular batch of food products is found to be contaminated, traceability systems can help isolate and recall that specific batch swiftly, preventing widespread issues. Moreover, such systems can provide valuable data that can be analysed to prevent future incidents, thereby enhancing food safety protocols.

 

The Role of Technology in Enhancing Traceability

Technological advancements have significantly bolstered the effectiveness of traceability systems. Tools such as 2D barcodes, Radio Frequency Identification (RFID), and blockchain technology are increasingly being used to track and trace food products more efficiently. These technologies provide real-time data and ensure the accuracy and accessibility of traceability information. For example, barcodes can store extensive data about the product, which can be easily scanned and retrieved at any point in the supply chain.

 

Benefits of Implementing Traceability Systems

Implementing traceability systems in the food industry offers numerous benefits:

  • Improved Recall Management: Enhanced ability to quickly and effectively identify, isolate, and recall contaminated or unsafe food products.
  • Enhanced Consumer Trust and Brand Reputation: By providing transparent information about food origins and handling, businesses can build consumer trust and strengthen their brand reputation.
  • Streamlined Supply Chain Management: Traceability systems facilitate better inventory management, reduce waste, and optimise the supply chain operations.

 

Building Consumer of Traceability in Food Chain Management

Transparency in food production and the supply chain is crucial in today’s market, where consumers are more conscious about the quality and safety of the food they consume. Traceability systems empower consumers with knowledge about the food’s origin, where it was processed, and its journey throughout. This transparency is instrumental in building trust and loyalty among consumers, which in turn enhances the brand’s reputation.

 

Implementing Traceaneous of Food Traceability Systems

Implementing a  traceability system involves several steps and considerations:

  1. Planning: Define the objectives and scope of the traceability system.
  2. Technology Selection: Choose appropriate technologies (e.g., barcodes, RFID) that fit the company’s operations and budget.
  3. Process Integration: Integrate traceability systems with existing processes without disrupting the supply chain.
  4. Training: Educate employees on the importance of traceability and how to use the new systems.
  5. Compliance: Ensure the system complies with local and international food safety regulations.

Conclusion

Traceability is an essential aspect of modern food safety and compliance frameworks. It not only helps manage recalls and reduce contamination risks but also plays a significant role in building consumer trust and enhancing overall brand reputation. As the global food supply chain becomes more complex, the need for effective traceability systems becomes more critical. With the GS1 India standards based traceability system, food businesses should prioritise the implementation of product traceability solutions to ensure food safety, comply with regulatory demands, and meet the increasing consumer expectations for transparency.

 

Frequently Asked Questions

1. How is food traceability implemented?

Food traceability is implemented by creating a documented trail of a product’s journey from origin to consumption, utilising technologies such as barcodes, RFID, and digital record-keeping systems.

2. How does the traceability system work?

A traceability system operates by documenting the history, location, and handling of a product as it moves from production to retail, enabling stakeholders to track its journey through the supply chain.

3. How can traceability help to reduce food contamination?

Traceability helps reduce food contamination by enabling quicker identification and recall of contaminated products, limiting further distribution and consumption.

4. What practices will support traceability?

Effective traceability is supported by consistent documentation, the use of standardised tracking technologies, and thorough training of personnel involved in the supply chain.

5. Why is traceability important in quality?

Traceability ensures that production and handling processes meet safety and quality standards at each step, facilitating continuous quality improvement.

6. Why is the food traceability system important?

It is crucial for ensuring the safety and reliability of food products, helping businesses respond to safety issues and maintaining consumer trust.

7. What is the scope of food traceability?

The scope of food traceability includes tracking the origin, processing, storage, and distribution of food products to ensure quality and safety from farm to fork.

8. How do you improve traceability?

Improving traceability can be achieved by integrating standards-based technologies, improving data sharing among stakeholders, and enhancing regulatory compliance.

Emerging Blockchain Trends in 2024 – From Institutions to AI

Posted on by Rahul Kumar

When discussing emerging technologies in 2024, the evolution of barcodes into a tech-enabled traceability system heralds a new era of efficiency and transparency. This transformation, significantly empowered by blockchain technology, sees the evolution from linear barcodes to 2D barcodes and the adoption of GS1 digital link standards. This article explores the burgeoning blockchain trends, its integration with artificial intelligence (AI), and the profound impact these advancements have on industries ranging from finance to supply chain management.

 

Understanding Blockchain Technology

Blockchain technology fundamentally transforms the way we envision data security and transparency in digital transactions. This innovative technology operates on a decentralised and distributed ledger principle, which means that instead of storing data in a central location, the information is dispersed across a vast network of computers worldwide. This decentralisation ensures that no single entity—be it a government, corporation, or individual—can monopolies or alter the recorded data, thereby significantly mitigating the risks of fraud and data tampering.

Moreover, each transaction on a blockchain is encrypted and linked to the previous transaction, forming a chain of blocks, which is where the technology gets its name. This chain is immutable; once information is recorded, it cannot be altered without the consensus of the network, ensuring the integrity of the data. This combination of transparency, security, and immutability makes blockchain an ideal foundation for a multitude of applications, from financial transactions to secure medical records, revolutionising how trust is established in digital interactions.

 

Importance of Blockchain in Various Sectors

Blockchain technology’s influence extends far beyond its initial application in finance, offering transformative potential across various sectors, including healthcare, supply chain management, and government services. In finance, blockchain facilitates secure, transparent transactions and the creation of decentralized currencies, dramatically reducing transaction times and costs while increasing security. Healthcare sees blockchain securing patient records, ensuring data integrity, and improving the sharing of medical information, ultimately enhancing patient care and privacy. Supply chains benefit through enhanced transparency and traceability, allowing for the verification of authenticity and ethical sourcing of products.

However, the journey towards widespread blockchain adoption is not without challenges. Scalability issues, energy consumption concerns, and the need for significant regulatory clarity are among the primary hurdles. Despite these challenges, the potential benefits of blockchain, such as increased efficiency, reduced fraud, and enhanced security, make it a compelling proposition for industries looking to innovate and improve their operational processes.

 

Institutional Adoption of Blockchain

Government Initiatives and Blockchain Projects

Governments worldwide are exploring blockchain technology to improve public services and governance. Various national blockchain strategies have been implemented, aiming to enhance the transparency, security, and efficiency of government operations. For instance, India’s public administration is progressively integrating blockchain with local and state initiatives, enhancing data management and certificate issuance.

Highlighting this adoption, New Town Kolkata’s NFT-based land mutation represents a leap towards efficiency. Supported by a solid developer community, these efforts are steering India towards blockchain innovation and global recognition in technology modernisation. These initiatives demonstrate the technology’s potential to revolutionise public sector services by offering secure, transparent, and accessible digital services to citizens.

Moreover, blockchain is being used to enhance the integrity of electoral processes, supply chain management in public procurement, and the management of public records, setting a precedent for the transformative impact of blockchain on governance and public administration.

 

Blockchain in Supply Chain Management

Blockchain technology is set to transform supply chain management by addressing traditional challenges of traceability. With blockchain, every transaction or movement of goods can be recorded, verified, and shared across a secure, decentralised network, enhancing visibility and reducing the likelihood of fraud. This capability, significantly enhanced by the adoption of GS1 digital link standards, is particularly crucial in complex global supply chains, where information of source and authenticity are paramount.

 

Adoption and Impact on Supply Chain Processes

The adoption of blockchain in supply chains has led to notable improvements in efficiency and optimisation. Companies like IBM and Maersk have demonstrated the technology’s potential to streamline operations, reduce paperwork, and ensure product authenticity. Successful implementations highlight blockchain’s role in not just enhancing transparency but also in driving tangible business value through improved supply chain agility and responsiveness.

 

Intersection of Blockchain and AI

The intersection of blockchain and artificial intelligence (AI) represents a groundbreaking fusion of technologies with the potential to redefine a multitude of industries. Blockchain’s decentralised and immutable ledger pairs with AI’s analytical power and automation capabilities to create a synergy that significantly enhances data security, privacy, and operational efficiency. Smart contracts, self-executing contracts with the terms directly written into code, are a key innovation in this intersection. They enable automated, transparent, and secure transactions without the need for intermediaries.

Integrating AI algorithms with blockchain can further optimize these smart contracts, making them more intelligent and adaptable to complex contractual conditions. This combination not only strengthens data security by ensuring that sensitive information is securely encrypted and stored but also enhances privacy through advanced data analytics that respect user consent and data ownership. The integration holds immense potential for industries ranging from finance to healthcare, where secure, transparent, and efficient processes are paramount.

 

Applications of AI in the Blockchain Ecosystem

Predictive analytics and machine learning, powered by AI, are being employed within the blockchain ecosystem to forecast trends, detect fraud, and enhance operational efficiency. AI-driven blockchain platforms offer solutions that are not only more secure but also capable of processing and analysing data at an unprecedented scale, driving forward the development of intelligent, decentralised networks.

 

Challenges and Opportunities

While blockchain presents vast opportunities, it also faces challenges such as scalability and interoperability. Technological solutions are emerging to address these issues, aiming to enhance the technology’s capacity to handle large volumes of transactions and facilitate seamless interaction between different blockchain systems. This progress paves the way for greater standardisation and interoperability across industries.

 

Future Blockchain Trends and Predictions

As we look towards 2024, the blockchain technology arena is expected to evolve with increased institutional adoption, advancements in scalability, and closer integration with AI. Predictions for the year emphasis the technology’s growing maturity, with a focus on sustainable and ethical applications, expanded use in non-financial sectors, and the emergence of national and global regulatory frameworks. The market is set to witness significant growth, driven by technological advancements and the increasing recognition of blockchain’s transformative potential.

 

Conclusion

In conclusion, the evolving landscape of blockchain technology in 2024 presents a promising horizon for industries, governments, and institutions. From enhancing supply chain transparency to integrating with AI for smarter operations, blockchain is at the forefront of digital innovation. As we go through these emerging blockchain trends, the continued exploration and adoption of blockchain will undoubtedly shape the future of digital transactions and services, heralding a new era of efficiency, security, and trust.

 

Frequently Asked Questions

1. How is blockchain related to artificial intelligence?

Blockchain and AI complement each other, with blockchain providing a secure and transparent environment for data transactions, while AI offers the ability to analyse and interpret this data, leading to more intelligent and automated systems.

2. How does blockchain enhance supply chain transparency?

Blockchain creates a tamper-proof record of every transaction or movement of goods within the supply chain, enabling real-time visibility and verification of product origin and authenticity.

3. What challenges hinder blockchain adoption in supply chains?

Key challenges include technological complexity, scalability issues, the need for standardisation, and regulatory uncertainty.

4. Does blockchain help combat supply chain fraud?

Yes, by providing an immutable and transparent record of transactions, blockchain significantly reduces the opportunities for fraud within supply chains.

5. What’s the role of smart contracts in supply chain efficiency?

Smart contracts automate contractual obligations and transactions, streamlining processes, reducing manual intervention, and increasing efficiency within supply chains.

6. Is blockchain scalable for large supply chain networks?

Scalability remains a challenge, but ongoing technological advancements and emerging solutions are enhancing blockchain’s scalability for large networks.

7. How does blockchain integrate with AI in supply chain optimizations’?

Blockchain ensures secure and transparent data sharing, while AI uses this data for advanced analytics, predictive modelling, and process optimizations’, together driving greater efficiency and effectiveness in supply chain management.

Tech-Enabled Traceability Driven by Evolution of Barcodes

Posted on by Rahul Kumar

In the modern world, traceability has become a cornerstone for ensuring transparency, safety, and efficiency in various industries ranging from food to healthcare and manufacturing to logistics. At its core, traceability allows the tracking of products from their origin through every stage of their journey, ensuring quality control, authenticity, and compliance with regulations. This blog delves into how the evolution of barcodes has been essential in enhancing tech-enabled traceability systems.

Definition of Traceability

Traceability refers to the capability to trace the history, journey, or location of an entity by recorded identifications. In various industries, traceability is crucial for verifying the authenticity of products, managing recalls efficiently, ensuring compliance with safety standards, and enhancing customer trust. Traditional barcodes, consisting of a series of vertical bars of varying widths, have long been the backbone of traceability systems. However, their limited data capacity and susceptibility to damage have necessitated the development of more robust solutions.

Evolution of Barcodes

The journey from traditional barcodes to more sophisticated forms marks a significant evolution in traceability technology. Traditional barcodes have been instrumental in streamlining operations but faced limitations in data storage.

The Shift to 2D Barcodes

2D barcodes, such as QR codes and Data Matrix, have revolutionized traceability with their ability to store vast amounts of data, including manufacturer details, serial numbers, and even web links, in a compact format. These barcodes can be scanned from any direction, improving efficiency and reducing errors in the scanning process.

RFID Technology and Its Impact

Radio-frequency identification (RFID) uses electromagnetic fields to automatically identify and track tags attached to objects. RFID tags can store a wide range of information and do not require a line of sight for scanning, significantly enhancing traceability across supply chains.

Introduction of Data-Rich Barcodes

Data-rich barcodes like GS1 DataBar (DataBar was used for smaller items with less space for a barcode) and PDF417 (PDF417 is not related to GS1 India) have further expanded the capabilities for detailed traceability. These barcodes can hold extensive information, including batch numbers and expiry dates, facilitating more precise tracking and management of products.

GS1 Digital Link

GS1 Digital Link revolutionises product identification by transforming traditional barcodes into gateways for online content. By scanning a single barcode, consumers and businesses can access extensive information such as product origins, authentication, user manuals, and more, significantly improving transparency and traceability across supply chains.

Revolutionising Traceability with GS1 Digital Link

GS1 Digital Link extends the functionality of barcodes by linking them to digital content on the web. This innovation offers immense benefits for traceability, including dynamic data access, enhanced consumer engagement, and the ability to update information in real time, which is particularly useful for managing product recalls and ensuring compliance with safety standards.

 

Tech-Enabled Solutions for Traceability

The integration of barcodes with advanced technologies like the Internet of Things (IoT) and Data Matrix codes has opened up new avenues for creating more resilient and efficient traceability systems.

Integration with IoT

IoT technology enables real-time tracking and monitoring of products through sensors and smart devices, providing unprecedented visibility across the supply chain. When combined with barcode technology, IoT enhances traceability by automating data collection and providing detailed insights into the condition and location of products.

Integration of Data Matrix Codes in Traceability Systems

Data Matrix codes are increasingly being incorporated into traceability systems for their high data density and error correction capabilities. These codes are instrumental in tracking and tracing products, especially in industries where space on the product is limited.

Real-world Applications of Tech-enabled Traceability

The advent of tech-enabled traceability systems has modernised several industries by enabling the precise tracking and verification of products throughout their lifecycle. In the food industry, these systems ensure the safety and authenticity of food products by tracking their journey from farm to table. This not only helps in quickly identifying and addressing potential contamination issues but also enhances consumer confidence in the safety and quality of food products.

In healthcare, traceability technologies play a critical role in managing pharmaceuticals and medical devices. By meticulously tracking the distribution and usage of these products, healthcare providers can significantly improve patient safety. This technology aids in the prevention of counterfeit medicines entering the supply chain and ensures that medical devices are used within their validity periods, thereby reducing the risk of adverse health outcomes.

Within the manufacturing and logistics sectors, traceability systems are important in optimising production and distribution processes. They offer real-time visibility into the supply chain, allowing companies to monitor the movement of goods, manage inventory more effectively, and reduce the likelihood of errors. This heightened efficiency and reliability not only reduce operational costs but also improve customer satisfaction by ensuring the timely delivery of products.

Overall, tech-enabled traceability is a key driver of transparency, efficiency, and quality across various industries, underscoring its importance in the modern economy.

 

The Future of Traceability and Barcodes

The future of traceability and barcodes is set to be transformed by emerging technologies, marking significant advancements in how we track and authenticate products across various industries. Innovations in barcode technology, such as the development of more sophisticated, high-capacity QR codes and RFID (Radio Frequency Identification) tags, are at the forefront of this evolution. These technologies promise enhanced data storage capabilities, enabling the embedding of extensive product information, from origin to expiration dates, directly within the code.

Additionally, blockchain technology is poised to upgrade traceability systems by offering unparalleled transparency and security in supply chains. It allows for the creation of immutable records of product journeys, ensuring authenticity and compliance with regulatory standards. Predictions for the evolution of traceability systems also include the integration of AI and machine learning, which could automate and refine the process of tracking, detecting counterfeit products, and predicting supply chain disruptions. Together, these advancements suggest a future where traceability systems are more efficient, secure, and transparent, benefiting businesses and consumers alike.

 

Conclusion

The evolution of barcodes from simple linear identifiers to complex, data-rich symbols has been instrumental in driving advancements in traceability. As technology continues to advance, the integration of barcodes with digital solutions like GS1 Digital Link, IoT, and emerging technologies will further revolutionise traceability, ensuring greater transparency, efficiency, and safety across all industries.

 

Frequently Asked Questions

1. How do data matrix codes differ from traditional barcodes?

Data Matrix codes differ from traditional barcodes in several ways. Unlike linear barcodes that store data in a series of parallel lines, Data Matrix codes are 2D and encode information in a grid of black and white cells. This allows them to hold much more data in a smaller space, including alphanumeric characters and binary data, making them more versatile and efficient for various applications.

2. What are the benefits of using data matrix codes for traceability?

The benefits of using Data Matrix codes for traceability include their high data capacity, ability to encode information directly on items with very small print areas, and resilience to damage. They can store significant amounts of data, such as serial numbers, lot codes, and expiration dates, directly on the product, enhancing traceability throughout the supply chain. Their error correction capabilities ensure data can be retrieved even if the code is partially damaged.

3. How does GS1 Digital Link enhance barcode technology?

GS1 Digital Link enhances barcode technology by transforming traditional barcodes into gateways for accessing a wide range of information online. It leverages web URLs encoded within barcodes, allowing consumers and businesses to access product information, user manuals, and traceability data by scanning a QR code or Data Matrix. This connectivity offers a seamless bridge between physical products and digital data.

4. How does barcode scanning technology contribute to traceability systems?

Barcode scanning technology plays a crucial role in traceability systems by enabling the quick and accurate capture of product information at various points in the supply chain. It facilitates inventory management, tracks the movement of goods, and helps verify the authenticity of products, contributing significantly to the efficiency and reliability of traceability systems.

5. Can existing barcode systems be easily integrated with GS1 Digital Link?

Existing barcode systems can be integrated with GS1 Digital Link, allowing businesses to utilize their current infrastructure while adopting new capabilities. This integration is facilitated by the use of standardized identifiers and the flexible nature of GS1 Digital Link, which can encode existing data formats within a QR code or Data Matrix, enhancing the utility of existing barcodes.

6. What are the primary challenges in implementing tech-enabled traceability systems?

The primary challenges in implementing tech-enabled traceability systems include the need for a significant initial investment in technology and training, the complexity of integrating new systems with existing operations, data privacy and security concerns, and ensuring interoperability across different systems and standards. These challenges require careful planning, investment, and collaboration among stakeholders to successfully implement and benefit from advanced traceability systems.

Global Trade Item Number (GTIN) – GS1 India

Posted on by Rahul Kumar

A Global Trade Item Number (GTIN) serves as a unique identifier, making every product distinguishable worldwide. It’s similar to a product’s passport when in the market, ensuring that no two products bear the same number. This identifier is crucial for businesses, retailers, and consumers, facilitating efficient inventory management, product tracking, and checkout processes. GTINs are typically found alongside the barcodes, like the GS1 barcode, on a product’s packaging, making them easily accessible for scanning at retail points or for online listing purposes. 

What is GTIN?

GTIN full form – Global Trade Item Number – a series of numbers that uniquely identify a product in the global marketplace. This numbering system is essential for the standardisation and efficiency of international trade, helping businesses manage their inventories and streamline the checkout process. GTINs make it easier for products to be sold, tracked, and located anywhere in the world. 

Types of GTIN

The GTIN system encompasses a range of formats designed to uniquely identify products and services worldwide. Each type of GTIN is structured to suit different product types, packaging levels, and geographical considerations. Here’s a detailed look at the various Global Trade Item Number (GTIN) formats based on the provided information:

GTIN-13

  • Use: The GTIN-13 format is widely used in global trade, especially in India, and is the sole GTIN format for EAN-13 barcodes.
  • Structure: Comprises twelve digits, featuring a GS1 Company Prefix and an Item Reference. The prefix begins with numbers 1-9, denoting the company’s geographic location or origin, followed by a check digit.
  • Example Applications: A broad range of retail products internationally.

GTIN-8

  • Use: The GTIN-8 format is specifically designed for smaller items that cannot accommodate larger barcodes. It is the exclusive GTIN format used in EAN-8 barcodes.
  • Structure: Consists of seven digits, which include a GS1-8 Prefix and an Item Reference, followed by a check digit to ensure the number’s integrity. The GS1-8 Prefix identifies the country or issuing organisation, while the Item Reference specifies the particular item.
  • Example Applications: Small consumer goods where space is limited for labelling.

GTIN-12

  • Use: The GTIN-12 is the standard format for UPC-A barcodes, facilitating the identification of products in retail environments.
  • Structure: Contains eleven digits, including a U.P.C. Company Prefix and an Item Reference, capped off with a check digit. The U.P.C. Company Prefix is assigned to the manufacturer or distributor of the product, and the Item Reference uniquely identifies the product from that company.
  • Example Applications: General retail products in the United States and Canada.

GTIN-14

  • Use: GTIN-14 is used to identify trade items at various packaging levels, from individual items to bulk quantities. It is not used with EAN/UPC barcodes but rather with ITF-14 barcodes.
  • Structure: Begins with an Indicator Digit that specifies the packaging level (1-8 for standard packaging levels, 9 for variable measure products). This is followed by twelve digits that include a GS1 Company Prefix and an Item Reference, plus a check digit.
  • Example Applications: Bulk shipments, cases, or pallets of products, as well as items measured by variable dimensions or weights.

Each Global Trade Item Number format plays a critical role in the global supply chain, enabling the precise identification, tracking, and management of products. From individual consumer goods to large-scale shipments, the GTIN system facilitates efficiency, accuracy, and transparency across the board.

Why GTINs are Important for eCommerce

The Global Trade Item Number (GTIN) is essential when discussing modern eCommerce since it provides a universal standard for the identification of products across the global supply chain. Its importance in eCommerce stems from several key benefits that directly contribute to the efficiency, reliability, and growth of online business operations. Here’s an elaboration on why GTINs are critically important for eCommerce:

  • Drives eCommerce: GTINs are instrumental in the global flow of trade items and the associated information crucial for eCommerce. By standardising product identification, GTINs ensure that products are easily discoverable across online platforms. This standardisation supports the seamless listing and selling of products on various eCommerce sites and marketplaces, enabling businesses to reach a broader audience without the need for multiple identifiers.
  • Enhances Compatibility Across Business Sectors: The use of GTINs builds confidence among businesses across all sectors to engage in trade. This confidence comes from the compatibility that GTINs provide, ensuring that products can be identified uniformly, regardless of the industry or market. Such a level of compatibility is vital for the interoperability of systems and processes in a diverse and global eCommerce ecosystem.
  • Facilitates Accuracy in Supply Chain Operations: The capture and use of GTINs at critical points in the supply chain, such as warehouse shipping and receiving, hospital supply chains, and point-of-sale (POS) systems, are fundamental for maintaining accurate stock control and facilitating timely order replenishment. This accuracy is crucial for eCommerce, where consumer expectations for product availability and fast delivery times are high.
  • Leverages the GS1 Global Data Synchronization Network (GDSN): GTIN enables businesses to utilise the GS1 Global Data Synchronization Network (GDSN), a powerful tool for managing product information across the supply chain. The GDSN ensures that all trading partners have access to consistent and up-to-date product information, thereby increasing data accuracy, improving operational efficiency, and reducing costs associated with data management discrepancies.
  • Simplifies Supply Chain Management: By providing a unique identifier for every product, GTIN streamlines communication among supply chain partners. This simplification allows for more efficient management of the flow of products and information, reducing errors and enhancing the overall agility of the supply chain. In the fast-paced world of eCommerce, such efficiency is key to meeting consumer demand and maintaining competitive advantage.
  • Improves Data Quality: GTINs contribute significantly to the improvement of data quality within the supply chain. By ensuring that product information is consistent among all supply chain partners, GTINs help to eliminate discrepancies that can lead to inefficiencies, such as incorrect product shipments or listings. High-quality data is essential for making informed business decisions and providing customers with accurate product information, which in turn supports better customer experiences and loyalty.

GTIN Structures

At the core of GTIN’s utility is its numeric structure, which ensures that every product can be universally recognised. This structure includes different elements designed to provide detailed information about the product, including its origin, manufacturer, and specific item details. The flexibility to accommodate this structure within only some digits is what makes GTIN so effective for global commerce.

While GTINs are commonly associated with barcodes, their utility extends to other data carriers. This adaptability ensures that GTINs can be utilised in a wide array of technologies and mediums to suit different needs and environments.

How are GTINs Used?

GTINs are used throughout the product’s lifecycle, from manufacturing to end sale. They play a key role in supply chain logistics, enabling the tracking of products as they move from factories to warehouses to retail shelves. GTINs are also essential for online sales, where they help list products on eCommerce platforms, optimise search engine presence, and facilitate transactions. By standardising product identification, GTINs simplify the global trade process, making it more efficient and reliable.

GTIN vs UPC vs Barcode

GTIN, full form as Global Trade Item Number, is a broad term that represents unique product identifiers used globally, encompassing various formats like UPC (Universal Product Code), EAN (European Article Number), and others. A GTIN can be encoded into a barcode, a visual representation that allows for easy scanning and identification of products. Barcodes, therefore, are the graphical representations that encode GTINs (including UPCs) for scanning purposes, facilitating the tracking and sale of products across retail and online platforms.

Frequently Asked Questions

1. What is GTIN used for?

GTIN is used for uniquely identifying products worldwide, facilitating their tracking, listing, and sale across the global marketplace.

2. Which requirements are needed to be able to use a GTIN?

To use a GTIN, a company must obtain a unique company prefix from GS1 member organisation – GS1 India, ensuring their product’s identifiers are globally unique.

3. Can the GTIN be used to identify the associated company?

Yes, part of the GTIN includes a company prefix, which identifies the company that owns the brand of the product.

4. What are SKUs, and how do you use them?

SKUs, or Stock Keeping Units, are internal product identifiers used by companies for inventory management. Unlike GTINs, SKUs are not standardised and vary from company to company.

5. Is a GTIN number mandatory?

While not universally mandatory, GTINs are required by most major retailers and eCommerce platforms for product listings.

6. Do all my products need GTIN numbers if I want to sell on Google Shopping?

Generally, yes. Google Shopping requires GTINs for most listed products to enhance searchability and provide detailed product information.

7. What if a Product Doesn’t Have a GTIN?

Products without GTINs face significant challenges in the marketplace. It will be quite difficult to list the products on major online platforms, potentially limiting their visibility and sales opportunities.

Risk in the Pharmaceutical Industry and How You Can Safeguard Your Firm With GS1 India

Posted on by Nitesh Agrawal

Traceability is an indispensable need of the supply chain in the pharmaceutical industry. The challenges faced by pharmaceutical organizations during the recent COVID pandemic have exposed the importance of traceability even further. According to a report by LogiPharma and BSI, Supply chain visibility stands out as the major challenge faced by the pharmaceutical industry. This is followed by issues with Goods distribution practices, Data integrity, Supplier quality, and supplier compliance management.

The same report suggests that in the next three years, cost pressure, supplier compliance management, and regulatory policy changes will be the major challenge for the pharmaceutical industry. All these challenges impose a greater risk of product recall which can be solved by ensuring an effective traceability system in the supply chain.

Pharmaceutical products are quality-sensitive and hence need continuous monitoring as they move in the supply chain. Traceability also helps to ensure that all the quality and regulatory guidelines set by governing authorities like WHO, DQSA, and FDA are compliant. Traceability helps to prevent the entry of fraudulent enterprises that can counterfeit products of any legitimate drug manufacturer. Having end-to-end traceability helps drug manufacturers to have better control of their supply chain. This article highlights the challenges faced by the pharmaceutical industry due to the lack of product traceability and how GS1 India is changing the face of pharma supply chains with its traceability solutions.

DataKartTrace is the track-and-trace solution of GS1 India, a non-profit organization set up by the Ministry of Commerce, Government of India, to authorize barcodes in India. According to GS1, Traceability is defined as a process that “enables you to see the movement of prescription drugs or medical devices across the supply chain. You can trace backwards to identify the history of the transfers and locations of a product, from the point of manufacture onwards. And you can track forwards to see the intended route of the product towards the point of care.”

Today, people are not just looking for transparency in terms of product quality, but they are also seeking answers to questions like what is the place of manufacturing, when was it produced, how was the product tested, and what all ingredients does it contain. With transparency, it is easier to answer all these questions to the consumers and keep a record of how efficiently operations are happening in the supply chain.

Let us look at how GS1 India’s traceability service is helping the pharmaceutical industry safeguard its supply chain network.

 

Adherence to compliance requirements

GS1 India complies with GS1’s Global Traceability Standard for Healthcare (GTSH), a process standard that provides a foundational framework that describes the traceability process and defines the minimum requirements for all stakeholders, independent from technologies, organization size, or operational sophistication. GS1 India also adheres to EPICS, a GS1 standard, which enables trading partners to share information about the movements and whereabouts of products and assets through the supply chain. Besides, GS1 India ensures compliance with the quality and legal requirements of the local government, FDA, FSSAI, etc. GS1 India helps comply with the track and trace guidelines issued by the Directorate General of Foreign Trade (DGFT) that help avoid the entry of spurious drugs at any point in the supply chain while exporting the drugs in foreign markets. DGFT mandates pharma manufacturers to mark their export consignment with GS1-authorized barcodes. The barcodes help the authorities cross-check the drugs’ manufacturing details at any point in the supply chain. GS1’s DataKartTrace is driven by various EU regulations and international safety laws.

International acceptability

GS1 India’s DataKart Trace helps organizations get international acceptability for their products. GS1 India follows global standards for identifying, capturing, and sharing supply chain information; hence it meets the compliance requirements of various countries. DataKartTrace helps increase security, visibility, and control in the supply chain. Thus, by adopting GS1 traceability services, enterprises don’t need to stress their resources for managing numerous international regulations and licenses. GS1 India eases their work. With product GTINs, GS1 India helps trace the product back to its manufacturing plants, production lines, and production batch. It empowers the business owner to keep an eye on their contract manufacturers and suppliers.

Product recall

Product recall is the process of calling your products off the market in case of safety, legal or regulatory breach. Recall happens when an organization fails to comply with the guidelines and requirements set by the regulatory bodies such as FDA, FSSAI, or local government that can cause the consumer to suffer. Visibility, smooth and accurate flow of information across the supply chain, infrastructure availability, responsive information sharing, and logistics network are some of the necessities of an efficient product recall system. GS1 India’s traceability service helps the organization be recall-ready by ensuring a smooth flow of information, visibility, and responsiveness in the system. The pharmaceutical industry is more susceptible to product recalls because stringent compliances are issued on them, owning to the question of public safety. GS1 India helps organizations prevent product recall by monitoring their product quality and legal licenses and safeguards them with traceability if the product is recalled.

Product visibility

DataKartTrace helps enhance visibility in the supply chain. Visibility is essential for fight product counterfeiting and ensuring consumer safety. It also helps to make strategic decisions for improving the efficiency of logistics and supply chain operations. Product visibility helps pharmaceutical organizations plan their cold supply chain where the drugs, consumables, and other medical supplies are highly sensitive to temperature and other environmental conditions. GS1 India ensures that the information is available to all the stakeholders well in time and inconsistent manner. GS1 India promises an affordable solution for maintaining precision and accuracy in product information.

DataKartTrace is easy to implement and ensures interoperability by sharing the information in standard format overcoming geographical, jurisdictional, and language limits. The solution is customizable and flexible as per the needs of customers and the complexity of the supply chain. To know more about DataKartTrace, contact us.

 

Frequently Asked Questions

1. Why is traceability important in the pharmaceutical industry?

Traceability is crucial in the pharmaceutical industry to ensure the safety, quality, and integrity of products. It enables the tracking and tracing of medications throughout the supply chain, helping to identify and address issues such as counterfeit products, contamination, and recalls, thereby safeguarding consumer health.

2. How to ensure traceability of a pharma product through good practices?

Ensuring traceability involves implementing good practices such as serialization, barcode labeling, and robust documentation systems. By accurately recording and tracking the movement of pharmaceutical products from manufacturing to distribution to the end consumer, companies can maintain traceability and compliance with regulatory requirements.

3. How does track and trace work in pharma?

Track and trace in the pharmaceutical industry involves assigning unique identifiers to individual units of medication, such as serial numbers or barcodes, and using technologies like RFID or blockchain to monitor their movement and location throughout the supply chain.

4. What are the challenges for implementing pharmaceutical drugs traceability in developing countries?

Challenges for implementing traceability in developing countries include limited infrastructure, lack of regulatory enforcement, inadequate technology adoption, and affordability issues. These factors can hinder the establishment of robust traceability systems and increase the risk of counterfeit or substandard medications entering the market.

5. What technologies are used for tracing pharmaceutical products?

Technologies used for tracing pharmaceutical products include RFID (Radio Frequency Identification), barcoding solutions, serialization, blockchain, and track-and-trace software systems. These technologies enable real-time monitoring and recording of product movement and help ensure transparency and accountability in the supply chain.

6. Are there international standards for pharmaceutical product traceability?

Yes, several international standards and guidelines exist for pharmaceutical product traceability, including those set forth by organizations like the World Health Organization (WHO), the International Organization for Standardization (ISO), and regulatory agencies in various countries. These standards outline requirements and best practices for implementing traceability systems.

7. How does traceability help in the event of a product recall?

Traceability facilitates rapid and targeted product recalls by enabling companies to identify affected batches and trace their distribution channels. By quickly locating and removing potentially unsafe products from the market, traceability minimizes the risk of harm to consumers and helps protect the company’s reputation and financial interests.

Benefits of GS1 India’s DataKart Trace: A Case Study of Indian Army Supply Chain

Posted on by Nitesh Agrawal

The Indian Army faces many challenges in managing its operations that ranges from ammunition management to food supply chain management, it continuously strives to beat those challenges by bringing in innovative solutions. In recent times, one of the challenges the Indian Army faced was the lack of traceability in the movements of arms and ammunition during peace and wars. It faced a similar challenge in tracking its frozen and dry ration items from its manufacturing units to Army unit canteens situated at diverse locations in the country.

To counter these traceability issues, the Indian Army consulted GS1 India, a non-profit organization established under the Ministry of Trade and Commerce, Government of India. Datakart availability, ensuring safe operations, and seamless ammunition movements in times of peace and war. GS1 India, through its traceability services.

The volume of ammunition inventory the Indian Army handles is enormous. These inventory items are stored in lots in hundreds of storehouses of explosives. Keeping lakhs of ammunition in stacks not only makes them susceptible to accidents but also makes their tracing difficult. Real-time location visibility to this ammunition inventory is critical for effectively monitoring stocart Trace, helps the Indian Army keep track of its ammunition inventory which otherwise is very difficult to identify and locate at the (Central Ammunition Depot) CAD.

GS1 India undertook a comprehensive study of CAD’s logistics and warehouse management processes and systems. To ensure end-to-end traceability of ammunition movement, GS1 India suggested using automated data capture technologies like RFID with GS1 global standards for facilitating real-time asset tracking and stock management. Traceability enables identifying, tracking, and tracing the ammunition items throughout the supply chain as they move from different locations to the central Ammunition depot. Indian Army accepted the suggestions given by GS1 India and adopted the use of RFID tags on all ammunition prior to their dispatch to CAD. DataKart Trace, in alignment with GS1 traceability standards, also helps to reconcile physical stocks with the system inventory.

DataKart Trace also helps the Indian Army manage its food supply chain in compliance with FSSAI’s guidelines on product recall and traceability. DataKartTrace helps maintain the quality of the food supplies, which was one of the challenges faced by the Indian Army. By enabling tracking and tracing at the unit and batch levels, DataKart Trace enables product freshness by allowing easy FIFO implementation.

DataKart Trace also helps the Indian Army reduce manual intervention and human errors with handling product data. GS1 India follows Electronic Product Code Information Services (EPICS) standards for creating and sharing visibility event data. This gives better visibility on shelf life by providing real-time and accurate product data making Indian Army recall ready in the event of contamination in food at any point in the supply chain. GS1 India is an ISO 27001 certified organization.

With DataKart Trace, GS1 India has gained high value and trust among many private and government organizations. The Indian Army is using DataKart Trace extensively to ensure food and ammunition traceability. The successful results of the consulting of the Indian Army by GS1 India indicate how efficient DataKart Trace is in bringing traceability in the supply chain; To know more, Visit GS1 India.

Is Your Business Ready for Product Recall?

Posted on by Nitesh Agrawal

Overview

Organisations are required to carry out due diligence to avoid any such occurrences that may cost them resources such as money, time, and labour. However, there are some scenarios where companies are unable to ensure this due diligence requires the need for product recalls. In simple terms, recall is the activity of calling back the products supplied in the market upon realising the defects to ensure consumer safety. 

What is a product recall?

A product recall is the activity of initiating retrieval of products that may either be defective, expired, or infected, from the market to avoid jeopardization of consumer safety and business performance. The recall request is raised by the supplier/business owner upon identifying the defects. Not recalling faulty products from the system can call serious regulatory actions making it essential to identify and take necessary actions at the earliest. 

How to manage a product recall procedure 

The successful implementation of the whole recall procedure is highly crucial. Handling and managing the recall process is a very delicate process and needs a perfect equilibrium of support from all parties involved and alertness. Here’s a quick guide for you to successfully manage a product recall procedure.

1. React quickly

The reaction is critical in the event of default, no reaction can result in the consumption of faulty products which can sabotage the health, happiness, or experience of the consumers.

2. Notify authorities

Once you have identified the issue it is crucial to inform the authorities or agencies involved as quickly as possible. There may or may not be specific recall guidelines that you may have to follow depending on the product you serve and in which industry.

3. Give an explanation

To leave a positive impact, it is important to explain your product recalls to the end consumer. It helps maintain goodwill and ensures consumers understand the reason behind your sudden course of action.

4. Be available for questions

To avoid chaos, it is always advised to address public concerns, questions, or outrage if any. To make things easier you can set up an email account or provide a phone number for consumers to shoot their grievances.

5. Offer refunds

Business owners will have to provide full refunds or provide a functional/ fit-to-consume product to consumers. It serves as an opportunity to preserve customer relationships.

6. Use product recall insurance

Product recall is a costly process and can drain organisations of their hard-earned money. It is therefore radical to use insurance in such cases to cover costs such as shipping, disposal, and advertising.

7. Reintroduce the product

After the product is recalled from the market, start planning on the reintroduction of the product. The procedure can include strategizing marketing plans and agendas and taking consultations to avoid such instances in the future.

Types of Product Recall 

The Food and Drug Administration (FDA) classifies product recalls into three classes, with Class I being the products with the highest chances of posing injuries or even death. Products that can cause injuries or temporary illness fall in Class II, and products that are not harmful but still violate the regulations fall in Class III.

Class I: Recalls

The safety of the consumers is supreme and hence products that pose the greatest threat to this safety fall under Class I recalls.

Class II: Recalls

Class II recalls happen when there are remote chances of causing adverse health conditions or the product is capable of inflicting medically reversible consequences.  

Class III: Recalls

When the risk involved is near to nil, such products fall in the Class III category. Consumer exposure to such products will unlikely result in adverse health conditions.

Frequently Asked Questions

1. What types of products are typically recalled?

Food and drug-related, vehicles, or any other products that have the power to negatively impact consumers are typically recalled from the market.

2. How are product recalls announced to the public?

The organisation is liable to promptly inform the consumers through print, paper, or electronic media. It must also apprise the local/concerned authorities as a precautionary measure. The announcement should contain details such as the name of the organisation recalling the product and the product name, the date of manufacturing, the actions that the consumer should take, and a “do not consume” message. It must also have an emergency contact number. 

3. Who is responsible for enforcing product recalls?

As per the guidelines issued by the Ministry of Consumer Affairs, Food, and Public Distribution for product recalls, manufacturers or retailers are compelled to recall any product from the market that is deemed unfit for consumers. The guidelines provide the framework in which manufacturers or retailers have to operate, starting from informing government entities to informing the end consumers.

4. Are all recalled products completely removed from the market?

Yes, all the recalled products are completely removed from the market and consumers are compensated with either a full refund of the product or by providing a replacement of the product.

5. Can a product be recalled more than once?

A product can be recalled more than once if more than one contamination is identified. It can also be recalled more than one time when more lot number variations or retail locations are identified.

6. What steps should companies take to prevent future recalls?

Thoroughly know your product before releasing it in the market. Make sure the product is compliant with the industry regulations. Do product testing before the launch to identify any gaps, and make sure the product is 100% safe. Additionally, product inspections throughout the supply chain can help businesses resolve any catastrophe at the earliest.

7. Are there any penalties for companies that fail to initiate a recall?

As per the Consumer Protection Act, 2019, any company or entity that fails to recall products from the market as and when asked by the concerned authority is liable to face criminal actions and civil liability.

Traceability: Backbone of an Efficient and Targeted Product Recall

Posted on by Nitesh Agrawal

Product recalls can be a nightmare for any company. With markets becoming extremely competitive, it can damage the brand image and customers may lose trust in your products. There could be questions about the product’s safety and, in extreme situations, recalls can even bring a company to bankruptcy.

Heard of the Maggi case? In 2015, Nestle was ordered by the Food Safety and Standards Authority of India  to recall its certain batches after detecting the excess level of lead and MSG, declaring them hazardous. In absence of any targeted recall mechanism, Nestle India decided to destroy 37,000 tonnes of Maggi noodles worth Rs. 500 crore. For the next quarter, company’s net profit was down to 60% compared to the profit recorded in the same period the previous year.

Hence, a company’s ability to manage product recall, in case it happens, is a prime question for the leadership team. This article briefly talks about product recalls and how DataKart Trace, GS1 India’s traceability service, can assist in easing if not preventing recalls, especially for consumables and pharmaceutical products where product safety is a prime concern.    

A product recall calls for the removal of marketed products because of issues like design or production defects, non-compliance to safety standards, government regulations, or other quality issues. With respect to F&B and the pharmaceutical industry, product recalls usually happen when the consumable item is declared unsafe or it does not in compliance with the standards set by regulatory authorities. The objective of a recall is to halt the sales and distribution of the product in question and retrieve the concerned batches from the market for public safety.

A product recall can be a very tedious task as it involves huge paperwork and demands efficient end-to-end supply chain traceability. Without knowing where your products (concerning batches) are, actions cannot be taken further. This real-time knowledge on the location of batches/products is made available with DataKart Trace. It ensures keeping a record of all such details relating to the product, besides avoiding recall situations by continuous monitoring of quality and product safety.

DataKart Trace-based recall solution involves planning the entire course of action for recall. It addresses questions like which specific SKU to be recalled, the urgency of public health, recall scheduling, needs for public warning and communication, health hazard evaluation, the likelihood of future occurrence, recall status report, etc.

Product recall is a highly cost-effective process and distracts the business from its normal routine. The efforts required are tremendous to pull the product from the market and regain consumer trust. Hence having an efficient traceable system can never go wrong. DataKart Trace helps to define your recall management framework irrespective of your organization type. It gives senior leaders power to manage product recall ethically, efficiently, and effectively by adopting global standards for seamless data flow among the supply chain partners, and a single storage solution for all the parties. DataKart Trace recall solution is based on GS1 traceability standards (EPCIS) is a response to stringent regulations on product recalls for sustainable trading practices.

Blockchain Offers Next-Generation Traceability Solutions for Supply Chain Management

Posted on by Nitesh Agrawal

Blockchain is the new buzzword. In the past few years, blockchain technology has revolutionised several industries having wide applications in different fields with supply chain management being one of them. Before going into the details of how blockchain-based traceability is revolutionizing the supply chain, let us understand what blockchain is and how it works.

Blockchain is an encrypted ledger of digital data that is continuously authenticated with every new change by linking transactions in the form of a chain. The entire process is automated and hence transparency and efficiency are ensured for various parties involved including – dealers, distributors, suppliers, and third parties. The information or data is stored digitally in blocks, spread over thousands or millions of computers through an integrated network having algorithms to authorise/ check the authenticity of transactions.

With each scan, a new block gets added to the chain, automatically updating the information in the distributed ledger network spread across multiple stakeholders. Hence, you don’t have to manually add information, worry about manipulation or falsified information, plan against the bullwhip effect, or stand in the queue for information updates from other parties.

How Blockchain Traceability Impacts Supply Chain Management?

With this clarity on how blockchain works, let us see what it has to offer in supply chain management (SCM). The Council of Supply Chain Management Professionals (CSCMP) defines SCM as planning and management of sourcing, procurement, conversion/production, and management of logistics activities. It includes collaboration and coordination with multiple parties such as suppliers, distributors, stockists, other intermediaries, third-party service providers, and customers. With supply chain management becoming more complex due to globalization, competitiveness, increased number of SKUs, quality standards, etc., blockchain-based supply chain traceability is gaining traction.

With the help of GS1 standards and GS1 India’s traceability solution, DataKart Trace, you can determine information about the product in the supply chain, such as its location, source, destination, manufacturing details, expiry date or shelf life, etc. GS1 is a trusted and authorized body founded by the Ministry of Commerce & Industry, along with apex trade bodies, to help Indian manufacturers adopt global barcoding standards.

Why is Supply Chain Traceability important?

Having visibility helps make the supply chain system flexible and agile. It helps reduce time and effort by removing activities like manual recording, inaccurate pickups, inaccurate deliveries, etc., thus making the entire process much more accurate and faster. GS1 India’s DataKart Trace enables continuous monitoring of a product as it moves from one node of the supply chain to another, and thus, helps in making tactical, strategic, and real-time operational decisions.

In 2013, as per the Deloitte Global Supply Chain Risk survey, companies highlighted issues of low visibility with respect to their extended supply chains. Without traceability, one can encounter numerous challenges, such as difficulty in gathering product information, lack of product history, difficulty in complying with Regulatory norms, unstandardised information, etc. GS1 traceability standards when used along with blockchain technology help you record transactions faster and enable instant authentication.

Traceability using blockchain alone does not ensure a foolproof solution to SCM problems. For example, if the data ingested is inaccurately fed by the user, then the results will be of no use. GS1 standards can enable automatic data capture using AIDC technology hence, making the data capture accurate. They allow users to ingest incorrect information through a simple scan. Barcodes capture unique identification of products/consignments and link the same with relevant data, such as location, temperature, etc., for effortless sharing.

The Benefits of Supply Chain Traceability

Supply chain traceability offers numerous advantages, helping businesses enhance efficiency, mitigate risks, and improve transparency. Here are the key benefits:

  • Supply Chain Visibility – With increased traceability, there is greater visibility in the journey of the products. Supply chain stakeholders can accurately identify, manage and track products throughout the process. 
  • Enhanced Risk Management – It helps identify and assess risks such as fraud, counterfeit products, or supply chain disruptions. It also allows for better forecasting and planning by analyzing data on inventory, shipments, and demand.
  • Sustainability Best Practices – Traceability supports sustainability by enabling companies to verify and communicate the sourcing of materials and adherence to ethical practices (e.g., fair labour conditions, and environmentally friendly processes). 
  • Collaboration and Strengthened Relationships – Traceability encourages closer cooperation among supply chain partners by providing a shared view of the product journey. This can help streamline operations, improve communication, and strengthen partnerships.
  • Increased Customer Trust – Consumers are increasingly concerned about the products they purchase. Having a traceable supply chain allows companies to demonstrate their commitment to quality, ethics, and transparency, fostering trust and loyalty.

How does Blockchain achieve product traceability?

Blockchain provides a distributed ledger that catalogues transactions in an immutable, time-ordered manner whereas GS1 standards record and share the accurate data in a structured format, enabling interoperability between systems. GS1 standards for identification and structured data enable blockchain users to have scalability and integrity in their supply chain. GTINs, coded into barcodes, also enable the linking of additional product information in shared/ individual systems, which can be stored securely and shared anytime.

The foundation of blockchain-enabled supply chains governed by GS1 standards promises success in the product journey from supplier to customer.  Recently, UNDP Accelerator Lab India, along with GS1 India and Spices Board have joined hands to develop a Blockchain-based Traceability, Quality Assurance, and Trading System for Indian Spices. This will enhance the eSpice Bazaar platform by ensuring food safety and improved quality. The project is supported by the Cabinet Office of Japan under the Japan SDGs Innovation Challenge 2020.

During the pilot, farms and crops are being identified uniquely using GS1 identification and capture standards. The project is aimed at providing visibility to farmers in the spices value chain and their direct access to potential buyers, which will enhance their bargaining power and profits.

In another project, GS1 India has worked with NITI Aayog, the apex policy think-tank and change catalyst of the Government, on its pilot project that is aimed at ensuring the authenticity of pharmaceuticals using blockchain technology.  The technology is used with unique identification standards of GS1.

The scope of the project enabled track and trace beyond traditional methods by allowing users to verify whether prescribed conditions for the transportation of drugs were maintained throughout the journey or not (through IoT sensors), and status was made available to stakeholders through a mobile application.

The project report titled: ‘Blockchain: The India Strategy –Towards Enabling Ease of Business, Ease of Living and Ease of Governance’ analyses the value of blockchain in facilitating trust in government and private sector interactions, followed by considerations for evaluating the blockchain use case for implementation. It also highlights possible challenges and lessons from NITI Aayog’s experiences in blockchain implementation and showcases potential use cases that the ecosystem may consider.

Conclusion

Blockchain has untapped potential which needs to be harnessed, specifically in achieving supply chain transparency. With its ability to encode and make data sharing secure, blockchain can revolutionise end-to-end traceability across industries like healthcare, FMCG, transportation etc. From ensuring ethical sourcing and selling practices to safeguarding interests of consumers, blockchain will play a critical role.

Frequently Asked Questions

1. What is supply chain traceability?

Supply chain traceability refers to having complete visibility across the product’s supply chain journey.

2. How does blockchain help in supply chain management?

Blockchain can be leveraged to achieve supply chain traceability, transparency and ensuring data integrity & authenticity. 

3. How do you improve traceability?

Traceability can be improved by integrating an advanced solution or service like GS1 India’s DataKart Trace service which ensures end-to-end visibility across the supply chain of the product. 

4. What is the future of blockchain in the supply chain?

In future, blockchain-based traceability is expected to gain momentum with businesses slowly moving forward to embracing a more robust and technological shift in their processes. Blockchain traceability will bring the required data security and authenticity in the operations. 

5. What is the purpose of traceability?

The purpose of having traceability in operations is to ensure every product or element can be accurately identified, tracked, traced and recalled if needed, during its supply chain journey. It gives sellers the advantage of having complete visibility across their processes. 

6. What is an example of traceability?

Indian Army Food Traceability (IAFT) is one example of traceability. To provide quality and healthy food to the army in remote areas, the Indian Army does unit-level traceability of all the rations items supplied to the army.

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