Is Product Traceability Becoming a Need to Survive in the Global Supply Chain Market?

What is the Global Supply Chain?

Global supply chains (GSC) are the network chains spread across multiple continents and countries for sourcing and supplying trade items to minimize overall cost and increase customer satisfaction. They involve government bodies, legal and regulatory intermediaries, local traders, and political parties with the added complexity of different import and tariff duties, custom services, and fiscal systems.

How are they different from the domestic supply chain?

Contrary to the local or domestic supply chain, which has the parties within the national boundaries, the global supply chain has its suppliers, producers, distributors, and customers spread across the globe for cost-effective and responsive deliveries. Compared to the local supply chain, GSCs provide various benefits that include reduced price due to low labour and material cost, better opportunities for innovation, higher market share, better suppliers in the competitive market, and better quality of products and services.

What are the major challenges of GSC?

GSC comes with increased managerial difficulties. The involvement of foreign firms demands a higher degree of mutual coordination. In GSC, information flow, material handling, inventory management, warehouse management, and transportation become more complex because of wider geographic scope, international laws, different languages, higher lead time, different time zones, more number of supply chain partners, quality issues, environmental standards, and socioeconomic issues.

Besides, increased globalisation and competitiveness have changed the nature of customers. Today, they demand more transparency with fast and steady deliveries. This has created an environment of innovation and technological adaptation all over the world. Moreover, supply chains have started to charter deliveries of products which seemed impossible previously. Now, products with smaller shelf life are also being transported from one corner of the world to another. All this has forced GSCs to become more resilient by making smarter investments with organizations like GS1 India for better traceability. 

What is Product Traceability?

Product traceability is the ability to identify, track and trace the items or products throughout the supply chain. As the product moves from one trading partner to another, traceability system captures the information on What (is the product), When (at what time?), Who (With whom), Where (with which trading partner), and Why (why was it scanned?) about the product, and allows authorized users to securely access this information whenever they want.  Product traceability is an important tool to troubleshoot product or logistics-related problems. It offers continuous monitoring, quality control, waste minimisation, systematic information sharing, and increased transparency between different parties. Product traceability also ensures accurate records of product history, which can be used to eliminate internal and external non-value-adding activities. Internal traceability refers to tracing the product within the house. For example, keeping track of products during different stages of production activity or tracing the storage location within warehouse(s). External traceability helps to know where the product is currently located between various supply chain parties. For example, it will tell if the product is being shipped from India to the USA or is received by a warehouse in Texas. 

How GS1 India’s traceability services are contributing to GSC management?

With numerous advantages, the global marketplace also imposes many challenges on its supply chains, and organisations actively seeking support from global standards for tackling these issues. GS1 India is helping organisations to overcome these challenges that include longer delivery time, complexity in handling extensive product portfolio, difficulties in data gathering and drawing significant business insights, imposing security, loss of control over the supply chain, non-compliance with local norms by bringing supply chain visibility. GS1 organisations have gained trust worldwide in providing efficient product traceability services.

International Organisation for Standardization (ISO) has defined Traceability in the ISO 9001 standard, which also complies with the GS1 traceability standard. With its standards-based traceability services, GS1 India helps brand owners comply with governmental regulations, global quality certifications, social and environmental accreditations by keeping track of the product, raw materials, and processes it went through. Currently, all the leading organizations have either made traceability part of their system or working towards it. According to a news article published by Forbes in 2019, Subway has 98% of its products traceable using GS1 barcodes.

GS1 India’s traceability service provides infrastructure that enables MNCs to make data-driven decisions, taking competitive advantages, and building a sustainable business environment. By providing Global Trade Item Number (GTIN), GS1  helps you overcome barriers by ensuring a single code of universal product identification. The unique identification facilitates global chains to trace their products effortlessly. 

Few products such as drugs and medical ingredients are highly expensive. They need a temperature-controlled environment for shipment for which traceability is inevitable. GS1 India’s traceability service offer 24×7 visibility to troubleshoot issues with products and shipments.

With GS1 India’s traceability service, you can manage your business activities and logistics using its efficient dashboard management. You can check the required data in visual and other desirable formats using the cloud-based traceability platform.

Is Investment in RFID (Radio Frequency Identification) Justified Over Standard Barcodes?

What is RFID (Radio Frequency Identification)?

Radio Frequency Identification (RFID) is a wireless communication technology that uses electromagnetic or electrostatic coupling in the radio frequency portion of the electromagnetic spectrum to identify an object, animal, or person uniquely. Tiny tags are attached to products, each containing an antenna and a microchip. The antenna captures radio waves from a reader device, which sends a signal to the microchip. The microchip then transmits its unique identification data back to the reader.

What is Barcoding? 

Barcoding is the process of using a beam of light to scan the black and white lines of a barcode. The scanner detects the reflected light and translates it into text, which is then sent to a computer or database. Barcode scanners need a clear line of sight and can only capture one barcode at a time.

Is RFID Better Than Using Barcodes?

When deciding between Radio Frequency Identification (RFID) and barcodes, it’s essential to consider your specific needs and balance factors such as security, cost, and ease of implementation. Barcodes are cost-effective, easy to use, and widely adopted across various industries, making them accessible for businesses of all sizes. They are ideal for straightforward applications but have limitations in data capacity and require line-of-sight scanning, which can be time-consuming. 

On the other hand, RFID offers high efficiency, with the ability to read tags quickly from a distance without direct line-of-sight, and can store more information with better security features. However, RFID systems are more expensive to implement and require more complex technology and training. 

Ultimately, the choice between RFID and barcodes depends on specific use cases and business requirements. Barcodes remain relevant for their simplicity and cost-effectiveness, while RFID is advantageous for larger operations needing enhanced efficiency and data management. 

A hybrid approach may often be the best solution, leveraging the strengths of both technologies where they are most effective.

How Does RFID Work?

RFID technology operates through the interaction between an RFID reader and an RFID tag. The reader emits Radio Frequency (RF) signals via its antenna, which radiates this RF energy. The RFID tag, attached to an item or material, absorbs the energy to “power up” its embedded chip. Once powered, the tag transmits data back to the reader. The reader’s antenna captures this returned RF signal, and the reader decodes the information. The decoded data is then sent to a connected system for further processing and decision-making.

What are RFID Tags and Smart Labels?

RFID tags are small electronic devices that use radio frequency signals to transmit data about an item to an RFID reader. They consist of a microchip and an antenna. Smart labels, on the other hand, combine traditional barcode labels with RFID tags, offering both visual and electronic tracking capabilities, enhancing inventory management and product authentication.

RFID tag elements

RFID tags consist of two main elements: electronic circuitry and an antenna.

  • Electronic Circuitry: This includes a microchip that stores and processes information. The microchip typically contains a unique identifier and possibly other data pertinent to the item it is attached to. It is responsible for managing the communication between the tag and the RFID reader, including encoding and decoding the transmitted signals.
  • Antenna: The antenna is responsible for transmitting and receiving radio frequency signals. It captures the RF energy emitted by the RFID reader and uses it to power the microchip. Once the chip is activated, the antenna transmits the stored data back to the reader. The design and size of the antenna can vary depending on the frequency and range required for the application. Together, these elements enable RFID tags to efficiently communicate information wirelessly, enhancing tracking and inventory management capabilities.

RFID tag types

RFID tags come in three types: passive, semi-passive, and active.

  1. Passive: Passive RFID tags do not have an internal power source. They rely on the electromagnetic energy transmitted by the RFID reader to power up the microchip and transmit data. These tags are cost-effective and have a long lifespan but have a shorter read range, typically up to a few meters.
  2. Semi-passive: Semi-passive RFID tags contain a small battery to power the microchip but still rely on the RFID reader’s signal for communication. This battery enables better performance and a longer read range than passive tags, making them suitable for applications requiring higher reliability and read accuracy.
  3. Active: Active RFID tags have an internal battery that powers both the microchip and the transmission of data. This allows for continuous signal broadcasting and the longest read ranges, often up to hundreds of meters. Active tags are ideal for tracking high-value assets or in environments where real-time location tracking is crucial. However, they are more expensive and have a limited battery life.

What are the Types of RFID Systems?

RFID systems are categorized based on their operating frequencies: Low Frequency (LF), High Frequency (HF), and Ultra-High Frequency (UHF).

Low Frequency (LF) RFID

Operating between 30 kHz and 300 kHz, LF RFID systems have a short read range of up to 10 cm. They are less sensitive to interference, making them suitable for environments with metal or water. Common applications include animal tracking, access control, and anti-theft systems.

High Frequency (HF) RFID

Operating at 13.56 MHz, HF RFID systems have a read range of up to 1 meter. They are widely used in smart cards, ticketing, and payment systems due to their moderate read range and faster data transfer rates. HF systems can also support Near Field Communication (NFC) technology.

Ultra-High Frequency (UHF) RFID

Operating between 300 MHz and 3 GHz, UHF RFID systems offer the longest read range, up to 12 meters, and can read multiple tags simultaneously. They are ideal for inventory management, supply chain logistics, and asset tracking. UHF systems can be more susceptible to interference from metals and liquids, requiring careful implementation.

RFID Applications and Use Cases

RFID technology has diverse applications across various industries, enhancing efficiency and accuracy.

In retail, RFID tags streamline inventory management by providing real-time tracking of products, reducing stockouts and overstock situations.

In healthcare, RFID ensures the accurate tracking of medical equipment, supplies, and patient identification, improving patient safety and asset utilization. The logistics and supply chain sector uses RFID to monitor the movement of goods, enhancing visibility and reducing losses during transit. Manufacturing industries employ RFID for tracking parts and materials, optimizing production processes, and ensuring quality control.

Additionally, RFID is widely used in access control systems for secure entry to buildings and restricted areas, and in transportation for automated toll collection and vehicle tracking. These varied use cases highlight RFID’s versatility and its ability to drive efficiency across multiple domains.

RFID Security and Privacy

RFID technology, while highly efficient, raises important security and privacy concerns. 

  • Unauthorised Access: RFID tags can be read by unauthorized scanners, leading to potential data breaches and theft of sensitive information. To combat this, encryption and authentication protocols are implemented to secure the communication between tags and readers.
  • Eavesdropping: Hackers can intercept RFID signals, capturing data being transmitted. Strong encryption methods help mitigate this risk.
  • Cloning and Spoofing: Criminals can replicate RFID tags to gain unauthorized access or create counterfeit products. Advanced cryptographic techniques and unique tag identifiers enhance security.
  • Privacy Concerns: Individuals worry about being tracked without their consent through RFID-enabled items. Privacy measures, such as disabling tags after purchase or using protective covers, can alleviate these concerns. Balancing the benefits of RFID with robust security and privacy practices is crucial for its widespread adoption.

Frequently Asked Questions

1. What are the common applications of RFID technology? 

RFID technology is widely used in so many sectors like Retail, Healthcare, transport & logistics, supply chain, and manufacturing industries, etc. In the retail sector, RFID provides real-time product tracking. In Healthcare, it enhances safety and efficiency by tracking medical equipment, supplies, and product identification. The logistics and supply chain sectors use RFID to monitor the movement of goods.  Manufacturing industries use RFID to track parts and materials.

2. How secure is RFID technology?

RFID technology incorporates several security measures, such as encryption and authentication protocols, to protect data from unauthorized access. However, it can still be vulnerable to threats like eavesdropping, cloning, and spoofing. Advanced cryptographic techniques and unique tag identifiers enhance security. Implementing robust security practices is crucial to mitigate these risks and ensure the protection of sensitive information.

3. Are there any health risks associated with RFID technology? 

RFID technology operates at low power levels and uses non-ionizing radio waves, which are generally considered safe for humans. Studies have shown that RFID systems pose no significant health risks under normal usage conditions. However, as with any technology, it is essential to adhere to regulatory guidelines and safety standards to minimize any potential risks.

4. Can RFID tags be deactivated or removed? 

Yes, RFID tags can be deactivated or removed. Some tags are designed to be easily deactivated after their purpose is fulfilled, such as during the checkout process in retail stores. Tags can also be physically removed from items if necessary. Protective measures, like using RFID-blocking sleeves or covers, can prevent unwanted scanning.

5. How does RFID differ from NFC (Near Field Communication)? 

RFID and NFC both use radio frequency technology for wireless communication. However, RFID typically has a longer read range and is used for applications like inventory management and asset tracking. NFC operates at a shorter range, usually within a few centimeters, and is commonly used for secure transactions, such as contactless payments and data transfer between devices. NFC also supports two-way communication, allowing devices to exchange information interactively.

6. Can RFID tags be easily cloned or copied? 

While basic RFID tags can be susceptible to cloning or copying, advanced RFID systems incorporate security features like encryption and unique identifiers to prevent such actions. Implementing robust security protocols and using high-security tags can significantly reduce the risk of cloning and ensure the integrity of the RFID system.

7. What are the costs associated with implementing RFID solutions? 

The costs of implementing RFID solutions vary based on the scale and complexity of the system. Expenses include the cost of RFID tags, readers, software, and infrastructure setup. Passive RFID tags are generally cheaper than active ones. Additionally, ongoing maintenance and security measures contribute to the overall cost. Despite the initial investment, RFID can offer significant cost savings and operational efficiencies in the long run.

8. Are there any environmental considerations with RFID tags?

RFID tags, like other electronic devices, have environmental considerations. The production and disposal of RFID tags can impact the environment. Recycling and proper disposal of RFID components are essential to minimize environmental harm. Additionally, some RFID tags are designed to be environmentally friendly, using biodegradable materials to reduce their ecological footprint.

Ensuring Safety in Food Supply Chain with GS1 India’s Traceability Service

Food traceability is the capability of tracking and tracing the movement of food products and their raw materials throughout their entire journey in the supply chain. It includes step-by-step documentation of the complete product detail under different stages, such as procurement, production, processing, and distribution. Food traceability in the supply chain promotes the visibility of manufactured products and guarantees authentication of the ingredients being used.

What Are Food Traceability Systems?

Business owners or manufacturers of food products can route the journey of their entire product lots in a single system called a food traceability system. These systems provide information on a real-time basis leveraging technologies such as barcodes, Radio Frequency Identification, or Blockchain. Through this system, manufacturers can detect and trace back the manufacturing unit and ingredients of the product, map the whole production journey and ensure food product quality.

If you are a business owner and want to list your products in your food traceability system it is recommended to get barcodes for your food products. GS1 India is the only authority to allocate standardised, structured, interoperable and unique barcodes in India.

Why Are Food Traceability Systems Important?

Food traceability systems play a vital role in automating food product management in the supply chain. Below are some key reasons why organisations must adopt traceability systems – 

1. Traceability Food Safety 

Safety of products is pre-eminent especially when we talk about food articles. When dealing with the production of consumables or procurement of raw materials safety and security is something that cannot be overlooked in any situation. The record-keeping of the food products ensures compliance and that consumers get products of the highest quality. 

The traceability system helps in the easy identification and redressal of any health and safety hazards. Products found contaminated can be recalled as soon as possible once data is read by the product manufacturer using the system. 

2. Real-time food traceability  

Traceability systems record the whole journey of the food products on a real-time basis. The scanning of barcodes on food items facilitates mapping the complete product journey. Wherever the barcodes will be scanned, the details will automatically be received in the product traceability system and be reflected in real-time to manufacturers or sellers. This empowers businesses to ensure that food products are not subjected to any adulteration in their journey to end consumers. 

3. Reducing Corrective Actions    

Recalling food products from the market is not a new concept. Though it is a corrective action it is not the best course of action. Problems must be identified and resolved before they reach a stage where products have to be recalled. Recalling not only reduces customer trust and loyalty but also is very costly to any company. A good traceability system integrated with barcode technology helps in avoiding such circumstances. 

4. Being Compliant with Regulations 

Food traceability helps companies comply with the local and international regulations and safety standards of selling food products in the market. As a result of this, your company will enjoy brand goodwill and increased consumer satisfaction.

What to Look for When Looking into Food Traceability

1. Proper Documentation 

When opting for a product traceability system it is important to provide all your necessary documents such as a raw material list, contact details, complete product information, and batch identification. 

2. Efficient Finished Goods and Raw Material Management  

Your product management system must be easy to use and should be efficient. This will allow businesses to track the movement of food products easily without any disruptions. 

3. Improve Response Times 

A food traceability system will automatically improve your response times. When you are notified about the product journey on a real-time basis you will be able to identify gaps quicker than before and take corrective actions. 

4. Transparency and Honesty 

As a business owner, it is your responsibility at the end to take action when necessary. A food traceability system can only register data at various levels of the supply chain, you will have to be vigilant in identifying any discrepancies and notifying the concerned people and authorities.

Conclusion

Businesses must invest in implementing robust traceability systems to ensure the safety of their products at each stage. The scope and objectives behind traceability for each category of product must be very well defined and the system must be integrated with an advanced technology like barcode or RFD. 

Companies should also train their employees to use the traceability system so that every employee can track food products, promoting the identification of the root causes at the earliest.

Frequently Asked Questions

1. Are there international standards for food traceability?

Yes, there are several international standards to govern food traceability such as – EU Regulations – Regulation (EC) No. 178/2002, requires traceability for food and feed. In the CAC/GL 60-2006 standard, traceability is defined as a necessary tool for inspection.

GS1 Global Traceability Standards can also be analysed to understand and implement traceability by integrating barcode technology.

2. What challenges are associated with implementing food traceability?

Organisations face challenges in ensuring regulatory compliance, achieving interoperability, manual data entry, and unique product identification while implementing food traceability systems.

3. How does food traceability impact food supply chains?

Food traceability directly impacts the food supply chain by providing real-time information to the manufacturers. When details are registered and actions are taken promptly it results in an efficient, transparent and smooth supply chain.

4. What role do governments play in food traceability?

Governments play a critical role in food traceability. They are the sole authorities of introducing and developing standards governing food traceability.

5. Can food traceability prevent food fraud?

Yes, food traceability can indeed prevent food fraud. When the entire journey of the food products is documented and audited on a real-time basis, adulteration or food forgery can be identified and corrective actions can be taken.

6. How does food traceability contribute to sustainability?

Tracking food inventories at retail points helps analyse the stock effectively. It proves instrumental in maintaining efficient inventory levels and preventing situations such as stockouts or overstocking, thus contributing to sustainability.

7. Are small-scale producers required to adhere to food traceability standards?

No matter the scale, every manufacturer or food producer should adhere to food traceability standards to prevent any problems in the future.

Securing Supply Chain for COVID-19 Vaccine

Worldwide demand for vaccine production has escalated exponentially since the vaccines for the ongoing coronavirus pandemic were developed. Multiple stakeholders including government and private organisations, NGOs, healthcare institutions, pharmaceutical companies, and more have come together to supply vaccines to the population. However, the global demand is extremely high and with the need for speedy and large-scale production and administration of vaccines, countries are facing the challenge of securely procuring, storing, and transporting the vaccine to thousands of healthcare facilities.

The two COVID-19 vaccines primarily being administered in India right now are Covishield and Covaxin, and both need to be taken in two doses. The time interval between the two doses varies for both vaccines. A third vaccine, Sputnik, has recently been introduced as well. The logistical complications of safely storing and distributing these vaccines are many, and a system that can identify each unique consignment supplied through various channels is the need of the hour.

Tracking vaccine movement accurately, creating end-to-end visibility at each stage of the supply chain and diligent record-keeping is important as it will help manufacturers and distributors keep track of their consignments in the supply chain. Keeping consistent records will be a great help to all key stakeholders in the vaccine supply chain, from distribution partners to healthcare workers.

To enable this, a standardised process to identify and track vaccines in the supply chain is required because every single consignment of vaccines changes many hands before reaching its final customer/patient, i.e., an individual to whom the dose will be administered. With each new stage of the supply chain, there is a new level of complexity that is added. In the past, vaccines have lost in transit, substandard product entered into the chain, or consignments reaching their destination with damaged or expired vials of the vaccine.

The present high vaccine demand and low supply offers a fertile ground for vaccine counterfeiters to try and make a quick profit. Several fakes have been identified, and even fake versions of drugs like Remdesivir have been found. Present circumstances are such that vaccines are not just prescribed to young children for illnesses dino tube that have already been eradicated – the coronavirus vaccines are one of the most important resources in the world right now. This makes the need for a clear supply chain that is traceable from the point of origin to the final stage in the process, an urgent and crucial one.

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Manufacturers or importers of vaccines should take the necessary steps to ensure that product labels carry standardised markings and utilise an end-to-end traceability system. Each record should also have key information like the batch number and expiry date, to enable validation of vaccines. 

UNICEF has suggested a specification for a minimum basic traceability system to support countries avoid counterfeit or falsified medicines. Barcoding is vital in maintaining traceability, as each barcode is unique and can be identified as such. Unique identification encoded in barcodes is recommended by WHO on all levels of pinay flix vaccine packaging used for transit by manufacturers, except for the primary packaging of the product. A system that can lend ease and convenience to the tracking process, such as simply scanning a barcode, is very much required. It can facilitate efficient tracking of data and provides visibility in the supply chain so that recalling a consignment, for any reason, can be made easily.

GS1 India offers traceability service that meets global requirements, such as UNICEF standards, and has a host of benefits:

  • It can help validate product barcodes, detect fraudulent consignments of vaccines and protect brand image and identity
  • Provides accurate product information and control over product movement
  • Batches in the supply chain can be efficiently tracked
  • Helps reduce operational costs over an extended period of time
  • Manual errors are eliminated and operations can run smoothly
  • Provides better expiry management with First-In, First-Out (FIFO) system
  • Identifies when stocks are low and need to be replenished
  • Provides data insights to gain a better understanding of on-ground problems with the supply chain

Traceability, in the case of vaccines especially, is vital to ensure transparency across the supply chain and to ensure that the end consumers are safe. An end-to-end vaccine traceability helps perform recalls efficiently as and when required, from any stage of the supply chain.

Public Procurement’ to carry barcoding at the primary package level in 2019

With the production of vaccines constantly being accelerated to be able to keep up with global demands, traceability of vaccines and the capability for healthcare stakeholders to validate them at the point of administration is a pressing need. To enable this, each vaccine must be labelled with a 2D barcode and equipped with standardised information capture so as to fast-track logistical processes and track vaccines accurately no matter how far from the point of origin they have to be transported. Covert or forensic technologies can also be introduced on product packaging to add an extra layer of increased security to safeguard important resource from counterfeiters and fraudsters.

Why is it Vital to Trace Every Product Back to its Source?

The ability to trace a product’s journey to its source is intangible yet priceless. Tracing has already helped identify forged batches of Covid-19 vaccines.

The positive traceability results are a testament to the tools and technologies that are readily accessible to us in the current times. In the same vein, the traceability mechanism has been applied in today’s world trade markets, but it hasn’t yet been used to its complete potential because of many confusions and doubts amongst brand owners. ‘How will this help me?’, ‘Will it really make a huge difference?’. Such questions plague the minds of many brand owners who eventually decide to forgo the traceability option altogether.

Traceability: The Road to supply chain traceability

In case of perishable goods, brand owners usually face challenges when it comes to expiry date management of their products. A good traceability system allows them to manage their products distribution through the FIFO model. This helps brand owners distribute those products to the retailers whose expiry date is nearing and thus avoid business loss.

There are several actors one needs to consider before opting for a traceability system. Factors such as different costing models, vast catalogs of products with different types/shapes/sizes, varying regulatory compliances across countries/states, and distinct health safety rules need to be accounted for. So, if you are tracing products, even for a single manufacturer, you need to process numerous dynamics and create a seamless platform that accounts for everything. And, you need to do all that while keeping the expense manageable.

Despite these seemingly insurmountable challenges, traceability is essential if you want to succeed in today’s highly competitive business world. The good news is that there are organizations that have already implemented the traceability process successfully, and allowed manufacturers/brand owners to function transparently with complete accountability of every product.

Employ Registered Traceability Options for Best Results

The vast scope of the traceability process in retail makes it hard to be implemented by an isolated vendor, reseller, aggregator, or product manufacturer. The good news is that GS1 India a standards body already has a readymade platform in place for traceability. All the complexity of the process is eliminated through a layer of abstraction, and you get to build a bond of trust with your clients effortlessly.

Key attributes of a dedicated traceability platform are:

  • Ability to track the location of a particular product at any given time
  • Better inventory management by keeping track of expiry dates
  • Global acceptance of products within local and international markets
  • Integrated with various relevant databases for quick product information access
  • Compliance with major national/international rules and regulations

A dedicated, well-established, and more importantly – internationally recognized – platform becomes hugely important when you are entering new markets. GS1 India provides your brand with an unmatched level of transparency, which in the long run has many amazing benefits for your business.

Traceability: A Way to Increase Farmers’ Income by Ensuring Access to High-Quality Seeds

Indian agricultural sector is considered as the backbone of our country. Two-third of our population is dependent on agriculture directly or indirectly. The sector is not merely a source of livelihood but it is the main source of food, fodder and fuel.

This is the only sector that contributed to the growth of not only itself but also of the other sector of the country as well which makes it a basic foundation of our economic development.

India is the leading producer of spices, fish, poultry, livestock, plantation crops and ranks as the world’s largest producer of milk, pulses and jute. It is the only sector that has led to the growth of not only of itself but of the country’s other sector as well.

Indian companies produce everything required as agricultural inputs, starting from seeds, fertilizers, pesticides and irrigation equipment to farm machinery and plant health technologies.

However, there are still several obstacles that need to be tackled to keep the country self-reliant in fulfilling its food needs and increase exports of agricultural produce, besides contributing to the Prime Minister’s mandate of doubling the farmers’ income and revamping agricultural economy by 2022.

One of the major obstacles that have come to the forefront from the past several months is the quality of seeds reaching to farmers.  A seed particularly has an important input into agriculture, which has a major responsibility for crop production and contribution of all other inputs are largely depends on the quality of seeds. It is estimated that the direct contribution of quality seed alone has a positive impact on overall production by approximately 15-20 percent.

Sub-standard seeds affect farming and impact livelihood of farmers. Over the past few years, farmers have reported that the poor quality of seed impacted their crops and their overall livelihood. This is despite the fact that India has approximately 135 seed testing laboratories and 25 seed certification authorities.

This hints at the bigger problem of counterfeiting of seeds, leading to low-quality of seeds reaching to market, and then to farmers. The problem calls for the immediate adoption of such a system that will prevent the counterfeiting of seeds and ensure only genuine and high-quality seeds reach to farmers.

The best way to enhance Indian agricultural sector is by introducing global standards of barcoding and effective end-to-end traceability system to ensure that Seed Corporations and the agricultural departments in the Centre and State governments can keep a check on supply chains and ensure that no infiltration is happening in between. This will result in high-quality seeds reaching to farmers.

With this objective, the government is developing a portal where information on seed could be captured digitally, including grower’s details, lot number, production data and seed testing laboratory codes.

This would help users (farmers and retailers selling seeds) decode it with the scan of a barcode to validate information on the seed packet. However, this solves the counterfeit issue just on the surface as most counterfeit products copy entire product labels, including barcodes, which will still pose validation problems.

To tackle that, we need to uniquely identify each unit that is being sold, so that we know that a product once sold, could not be sold again. This would act as an effective mechanism to detect and arrest counterfeits at the point of sale. GS1 global supply chain standards enable this and have proved effective in controlling counterfeits and enabling product authentication at point-of-sale.

Additionally, the adoption of global identification standards would help uniquely identify each seed packet. Also, its adoption enables compliance with global regulations, providing seed manufacturers with a competitive edge in the global market. And most importantly, this will increase farmers’ income by ensuring they have access to high-quality seeds. Traceability system help farmers in track, trace and identify seed’s origin such as from where the seed has arrived or been produced during the purchase of seeds.

Some other benefits of adoption of Global Traceability Standards include: 

  • Enhanced operational efficiency in distribution, transport and logistic processes
  • Ability to react faster to incident or crisis and more targeted recalls
  • Ability to authenticate the origin of seeds by capturing its supply chain journey
  • Detecting counterfeit
  • Increased transparency between business-to-business and business-to-consumer transactions, enabling trust

To avail the benefits of GS1 India’s Traceability service for a transparent supply chain process, visit us at https://support.gs1india.org/traceability-service-consultation

Product Traceability – A Way to Enhance Supply Chain Efficiency and Reduce Costs

Overview:

Product traceability enhances supply chain efficiency by providing comprehensive tracking and management of goods from production to delivery. This transparency ensures quality control, minimises errors, and facilitates quick responses to issues like recalls or defects. By optimising inventory management and reducing waste, traceability also leads to significant cost savings, making it an invaluable tool for businesses aiming to streamline their operations and improve overall supply chain performance.

What is traceability in manufacturing?

Traceability in manufacturing refers to the ability to track the history, location, and application of products and their components throughout the production process. It involves documenting detailed information at each stage of the manufacturing cycle, from raw material sourcing to final product assembly. This data is recorded in a traceability system, allowing manufacturers to monitor the origin and journey of every part and product.

Traceability helps ensure quality control, compliance with industry standards, and quick identification of issues such as defects or recalls. It enhances transparency and accountability, enabling manufacturers to optimise processes, reduce waste, and improve overall product quality and safety.

Chain Traceability

Chain traceability refers to the ability to track and trace a product and its components through the entire supply chain, from raw material suppliers to end consumers. It provides a comprehensive view of the product’s journey, documenting each handoff and transformation. This end-to-end transparency helps ensure product authenticity, quality, and compliance with regulatory standards. Chain traceability is crucial for managing recalls, detecting counterfeit products, and maintaining consumer trust by verifying that the products meet all safety and quality requirements.

Internal Traceability

Internal traceability focuses on tracking and documenting the movement and transformation of materials and components within a single organisation or production facility. It involves detailed recording of processes such as assembly, inspection, and packaging. Internal traceability ensures that each step in the manufacturing process is monitored, allowing for quick identification of defects and quality issues. By maintaining precise records of internal operations, manufacturers can optimise workflows, improve quality control, and ensure compliance with industry standards, ultimately enhancing the overall efficiency and reliability of their production processes.

What is end-to-end traceability?

End-to-end traceability refers to the comprehensive tracking and documentation of a product’s entire journey through the supply chain, from the initial sourcing of raw materials to the final delivery to consumers. This concept encompasses every stage of the production and distribution process, providing a seamless and transparent view of a product’s lifecycle.

End-to-end traceability involves capturing detailed data at each step, including information about suppliers, manufacturing processes, quality inspections, logistics, and retail handling. This holistic approach ensures that all aspects of a product’s movement and transformation are monitored and recorded. By integrating advanced technologies such as RFID, barcodes, and blockchain, businesses can achieve real-time visibility and data accuracy.

The benefits of end-to-end traceability are manifold. It enhances product quality and safety by enabling quick identification and resolution of issues, such as defects or contamination. It also aids in regulatory compliance, as detailed records can demonstrate adherence to industry standards and legal requirements. Additionally, end-to-end traceability helps prevent counterfeiting and fraud by verifying the authenticity and origin of products.

Why is product traceability in manufacturing important to implement?

Product traceability in manufacturing is crucial for several reasons. It ensures quality control by enabling manufacturers to track the history and journey of each component and finished product, identifying defects and inefficiencies promptly. This level of oversight helps in maintaining high standards and consistency.

Traceability also enhances regulatory compliance, as manufacturers can provide detailed records to meet industry and legal requirements, reducing the risk of non-compliance penalties. In the event of a product recall, traceability allows for swift and precise identification of affected items, minimizing the scope and cost of recalls while protecting consumer safety.

Additionally, traceability combats counterfeiting and ensures product authenticity, which is vital for maintaining brand integrity and consumer trust. By optimizing production processes and supply chain management, traceability ultimately leads to cost savings and improved operational efficiency.

How to track production in manufacturing?

Tracking production in manufacturing involves several key steps to ensure efficiency and quality control:

  1. Implement Technology: Use technologies like RFID, barcodes, and QR codes to tag and track materials and products throughout the production process. These technologies provide real-time data on the location and status of items.
  2. Utilize Software Systems: Employ Manufacturing Execution Systems (MES) and Enterprise Resource Planning (ERP) systems to collect, manage, and analyze production data. These systems integrate with other tools to provide a comprehensive view of the manufacturing process.
  3. Data Logging: Record detailed information at each production stage, including raw material usage, processing times, quality checks, and assembly steps. This data helps in identifying bottlenecks and areas for improvement.
  4. Regular Audits and Inspections: Conduct routine audits and inspections to verify that processes are being followed correctly and to ensure that products meet quality standards.
  5. Employee Training: Train staff on the importance of data entry and accurate reporting. Proper training ensures that the tracking system is used effectively and consistently.

By combining these methods, manufacturers can maintain a clear and accurate view of their production processes, leading to improved efficiency, quality, and overall performance.

How to improve traceability?

Improving traceability involves several key steps. First, invest in advanced technologies like RFID, barcodes, and blockchain for real-time tracking. Integrate robust software systems, such as MES and ERP, to manage and analyse traceability data. Standardise procedures for data entry and reporting to ensure consistency. Enhance collaboration with supply chain partners to maintain transparency. Conduct regular audits to identify and address gaps. Train employees on the importance of traceability and the proper use of systems. Lastly, leverage data analytics to optimize processes and predict issues. These steps collectively enhance  traceability, improving efficiency, quality control, and compliance.

Utilize Traceability Software

Employ traceability software to centralise and manage data across the supply chain. This software integrates with existing systems to provide real-time visibility into product movements, processing stages, and inventory levels. By offering detailed tracking and reporting, traceability software enhances accuracy, facilitates compliance, and improves decision-making.

Enact Supplier Traceability Controls

Establish strict traceability controls with suppliers to ensure that every component and raw material meets quality and safety standards. Require suppliers to provide detailed documentation and records of their products. Implement regular audits and compliance checks to maintain transparency and accountability throughout the supply chain.

Implement Barcoding

Adopt barcoding to streamline product identification and tracking. Barcodes encode essential product information, which can be quickly scanned and recorded at various stages of the supply chain. This method improves accuracy, reduces manual data entry errors, and enhances the efficiency of inventory management and quality control processes.

Incorporate RFID Technology

Integrate RFID technology to enable real-time, automated tracking of products and components. RFID tags store detailed information about each item, which can be read without direct line-of-sight, offering enhanced visibility and accuracy. This technology supports efficient inventory management, reduces errors, and provides comprehensive data for traceability.

Provide Employee Training

Ensure employees are well-trained on traceability systems and processes. Training should cover the use of traceability software, barcoding, RFID technology, and the importance of accurate data entry. Regular training updates help maintain high standards and ensure that staff are equipped to manage traceability effectively.

Incorporate Lean Manufacturing Processes

Adopt lean manufacturing processes to optimize production efficiency and minimize waste. Lean principles, such as continuous improvement and just-in-time production, complement traceability efforts by enhancing process visibility and reducing unnecessary steps. This integration leads to more efficient operations and better traceability outcomes.

Reducing Costs through Efficiency

Reducing costs through efficiency involves optimising operations to eliminate waste and streamline processes. By implementing lean manufacturing principles, businesses can minimise excess inventory, reduce production time, and lower labour costs. Technologies such as automation and advanced data analytics further enhance efficiency by improving accuracy, reducing manual errors, and speeding up workflows. Efficient supply chain management and process improvements also help in cutting operational expenses and lowering overhead costs. These practices lead to higher productivity, faster time-to-market, and better resource utilisation, ultimately driving down costs while maintaining or improving product quality.

Frequently Asked Questions

1. What Is the Main Objective of Product Traceability?

The main objective of product traceability is to monitor and document the journey of products from raw material to end consumer. This includes tracking each stage of production, handling, and distribution. Traceability helps ensure quality control, compliance with regulations, and efficient management of recalls or quality issues, ultimately enhancing transparency and accountability in the supply chain.

2. Why Is Traceability Important, Especially for the Consumer?

Traceability is crucial for consumers as it provides transparency about the origin and handling of products. It helps ensure that products are safe, authentic, and meet quality standards. In case of a recall or safety issue, traceability enables quick identification and removal of affected items, protecting consumers from potential harm and building trust in the brand.

3. Can Product Traceability Help in Reducing Costs Within the Supply Chain?

Yes, product traceability can reduce costs by improving supply chain efficiency. It helps minimise waste, prevent counterfeiting, and reduce the scope and impact of recalls. By streamlining inventory management and enhancing process visibility, traceability supports better decision-making and operational efficiency, leading to overall cost savings.

4. What Technologies Are Commonly Used for Product Traceability?

Common technologies for product traceability include RFID (Radio Frequency Identification), barcodes, QR codes, and blockchain. RFID and barcodes facilitate automated tracking and data collection, while QR codes provide detailed product information accessible via smartphones. Blockchain offers secure and transparent data recording, enhancing traceability across the supply chain.

5. Is Product Traceability Applicable to All Industries?

Yes, product traceability is applicable to all industries, including food and beverage, pharmaceuticals, manufacturing, and retail. Each industry uses traceability to ensure product quality, safety, and compliance with regulations. While the specific requirements and technologies may vary, the fundamental goal of traceability—improving transparency and accountability—is universal.

6. What Types of Data Are Typically Tracked Through Product Traceability Systems?

Product traceability systems typically track data such as raw material sources, production processes, quality control results, handling and storage conditions, distribution routes, and final destination. This information provides a comprehensive view of the product’s journey and helps in managing quality, compliance, and supply chain efficiency.

7. How Does Product Traceability Help in Maintaining Product Quality and Safety?

Product traceability helps maintain quality and safety by providing detailed records of each stage in the production and distribution process. This allows for quick identification and correction of issues, such as defects or contamination. Traceability also supports rigorous quality control and compliance with safety standards, ensuring that products meet required specifications and are safe for consumers.

8. What Are the Regulatory Requirements Related to Product Traceability?

Regulatory requirements for product traceability vary by industry and region but generally include the need to maintain detailed records of product origin, production processes, and distribution. Regulations often require businesses to have systems in place for tracking and managing product information, reporting issues, and facilitating recalls. Compliance with these requirements helps ensure product safety and quality, and avoids legal and financial penalties.

Why is Traceability Important for Consumer Safety?

Overview:

Traceability ensures the tracking and verification of history, location and handling of products throughout the supply chain, which makes it a very essential part for consumer safety.  This transparency helps identify and address issues quickly, prevents counterfeit products, ensures compliance with safety standards, and enhances consumer trust by guaranteeing product authenticity and quality.

Why is traceability important in the supply chain?

Traceability is crucial in the supply chain for several reasons:

Product Quality Control

It ensures that products meet quality standards by allowing businesses to track and monitor every stage of production. This helps in identifying and addressing defects or issues promptly, ensuring only high-quality products reach consumers.

Compliance with Regulations

Traceability helps companies comply with regulatory requirements by providing detailed records of product origins, manufacturing processes, and distribution channels. This is essential for industries like food, pharmaceuticals, and electronics, where strict regulations are in place.

Supply Chain Visibility

Enhanced visibility across the supply chain allows for better inventory management, efficient recall processes, and reduced operational costs. It helps in identifying bottlenecks and optimizing the flow of goods.

Brand Protection

By ensuring product authenticity and preventing counterfeit goods from entering the market, traceability protects a brand’s reputation. It helps build consumer trust and loyalty by guaranteeing that products are genuine and safe.

Sustainability

Traceability supports sustainable practices by enabling companies to track the environmental impact of their products. It allows businesses to ensure that their supply chain adheres to ethical standards, such as fair labor practices and eco-friendly sourcing.

Product Traceability in Manufacturing Supply Chains

Product traceability is the process of identifying and tracking products through a supply chain. It involves logging manufacturing information in a database and monitoring products at every step. This detailed tracking minimizes the cost of product recalls, combats counterfeiting, ensures quality control, and optimizes production processes. By providing visibility and accountability throughout the supply chain, traceability enhances efficiency and consumer safety, while supporting compliance with regulatory standards and sustainable practices.

Importance of Traceability in Food Safety

Traceability in food safety is essential for ensuring the health and well-being of consumers. It allows for the precise tracking of food products from farm to table, providing detailed information about their origin, processing, and distribution. This transparency is crucial for quickly identifying and addressing potential contamination or safety issues, minimizing the impact of foodborne illnesses.

In the event of a recall, traceability enables swift and targeted actions, reducing the cost and scope of recalls and protecting consumers from harm. It also helps in combating food fraud and counterfeiting by verifying the authenticity and quality of food products. Moreover, compliance with stringent regulatory standards is facilitated through traceability, ensuring that food products meet safety and quality requirements.

Overall, traceability not only enhances food safety but also builds consumer trust by guaranteeing the integrity and reliability of the food supply chain.

Building consumer trust through traceability

Traceability plays a crucial role in building consumer trust by providing transparency and accountability throughout the supply chain. When consumers can track the origin and journey of the products they purchase, they gain confidence in the quality and safety of those products. This transparency reassures them that the products meet regulatory standards and ethical practices.

For instance, in the food industry, traceability ensures that consumers are aware of where their food comes from, how it was processed, and whether it meets safety and quality standards. This knowledge helps to prevent food fraud and ensures that only safe, high-quality products reach the market.

Additionally, in the event of a product recall, traceability allows for quick and efficient action, demonstrating a company’s commitment to consumer safety. By providing detailed information about product origins and manufacturing processes, businesses can enhance their reputation, foster loyalty, and build lasting consumer trust.

How to Implement Traceability in Supply Chain Management?

To effectively implement traceability in supply chain management, follow these steps:

  • Identify the Data to be Tracked: Determine which data points are crucial for tracking products, such as origins, production details, handling processes, and distribution channels.
  • Invest in Technology: Choose appropriate technologies, such as RFID, barcodes, or QR codes, that enable efficient tracking and data collection throughout the supply chain.
  • Develop Data Management Systems: Implement robust systems for storing and managing traceability data. Ensure these systems are capable of integrating with existing supply chain management software.
  • Implement Standard Operating Procedures: Establish and enforce procedures for data entry, tracking, and reporting to ensure consistency and accuracy.
  • Train Employees: Educate staff on the importance of traceability and how to use the new systems and procedures effectively. Regular training ensures adherence and proper utilization of traceability practices.

Frequently Asked Questions

1. What is Traceability in Logistics? 

Traceability in logistics refers to the ability to track and trace the movement and handling of goods throughout the supply chain. It involves recording data at each stage, from production and warehousing to distribution and delivery. This ensures that companies can monitor the path of products, manage inventory efficiently, and address any issues that arise during transit.

2. How Can Traceability be Improved in the Supply Chain? 

Traceability can be improved by investing in advanced technologies like RFID, barcodes, or QR codes, and integrating them into data management systems. Establishing clear standard operating procedures for data recording and monitoring, and providing regular training for employees on these processes, also enhance traceability. Additionally, leveraging real-time data analytics can offer better visibility and insights into the supply chain.

3. How does traceability contribute to improving product quality?

Traceability contributes to product quality by enabling the monitoring of each stage of production and handling. This allows for the identification of quality issues early in the process, ensuring that products meet established standards before reaching consumers. It also helps in analyzing trends and patterns to implement corrective measures and prevent future quality problems.

4. What role does traceability play in ensuring food safety?

Traceability is critical for food safety as it allows for the tracking of food products from their origin through to consumption. This transparency helps in quickly identifying the source of contamination during a food safety incident, managing recalls effectively, and ensuring that all safety and regulatory standards are met, thereby protecting consumers from potential harm.

5. How does traceability help in identifying and managing product recalls? 

Traceability helps in managing product recalls by providing detailed information on the product’s journey through the supply chain. This enables businesses to quickly locate and remove affected products from the market, minimize the impact of the recall, and address any issues promptly. Effective traceability ensures that recalls are targeted and efficient, reducing the risk to consumers and the costs associated with broad-scale recalls.

6. Can traceability be applied to both raw materials and finished products?

Yes, traceability can be applied to both raw materials and finished products. Tracking raw materials ensures that the components used in production meet quality and safety standards, while tracking finished products allows for monitoring through distribution and sales. This comprehensive traceability provides a complete view of the supply chain, ensuring quality and compliance at every stage.

7. What are the costs involved in implementing traceability systems? 

The costs of implementing traceability systems include expenses for technology (such as RFID tags, scanners, and software), system integration, data management, and ongoing maintenance. Additional costs may involve employee training and system upgrades. However, these costs can be offset by the benefits of improved efficiency, reduced risk of recalls, and enhanced customer trust.

8. How can small and medium-sized enterprises (SMEs) benefit from traceability? 

SMEs can benefit from traceability by gaining better control over their supply chain, improving product quality, and enhancing compliance with regulatory requirements. Traceability helps in identifying inefficiencies and potential issues early, which can lead to cost savings and better customer satisfaction. It also supports scalability and competitiveness by providing a framework for growth and innovation.

9. What steps can companies take to ensure the accuracy and reliability of traceability data? 

Companies can ensure the accuracy and reliability of traceability data by implementing robust data management systems, conducting regular audits, and maintaining clear standard operating procedures. Training employees on proper data entry and handling is crucial. Additionally, integrating real-time data collection technologies and conducting periodic system evaluations can help maintain data integrity and reliability.

Perishable Goods & Traceability is the Right Combination for Consumer Safety

Today, almost every product in the market comes under the perishable category, as every product has a shelf life. But when we talk about perishable goods, we usually mean the items with shorter shelf life, such as food items, medicines and other consumables. These perishable goods require faster response time for recalling them in case if any damage or problem detected. Traceability can help minimize the distribution of harmful items to the consumers by ensuring faster response rate and quicker product recalls. Let us understand how.

Why is traceability important for perishable goods?

Traceability gives brand owners visibility of their products along the supply chain – from its origin till the point of sale.

At every point in the supply chain journey, there are multiple trading partners responsible for moving the product till it is sold to the consumers. Moreover, each finished product usually has several components like raw materials, ingredients, etc., which may have been provided by different suppliers.

Traceability helps trace each of these elements from across the upstream supply chain, amongst multiple trading partners, ensuring any issue is detected easily and as early as possible. Hence, traceability establishes a relation between upstream and downstream supply chain. Let us get an idea how traceability does the job of establishing this link.

Upstream and Downstream Traceability

Upstream Traceability is the journey of a product from farm to the manufacturer, while Downstream Traceability is the journey of a product from manufacturer to the consumer. Every product is made of various components. Every component has its shelf life. And this stands true for food items as well. Consumable such as food, beverages, etc., usually have a shorter life span. With traceability, not only can product batches be tracked in the downward supply chain but even its components that has gone into those batches can be easily traced in the upward supply chain.

Does traceability help in quick recall to ensure consumer safety?

Yes, traceability helps in quicker product recalls for all categories, but it is much more critical for perishable goods. Faster recall can also help in safeguarding a brand’s reputation in the market. It is also especially helpful in case of pharmaceutical drugs where delays can result in fatality.

Want to know more about product traceability and how it can add value to your operations? Read more about GS1 India’s traceability solution.

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.

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