With competition at its peak in the current era, businesses are facing increasing difficulty with the issues of distributing their products, making the supply chain transparent, and securing their brand from counterfeit products. As goods travel through numerous distributors, warehouse centers, and retailers, it becomes essential for businesses to track their movement and ensure that the goods are genuine. Track and trace technology provides such a solution.
Track and trace technology allows for monitoring the movement of goods in a business organization through the process of manufacturing to distribution to delivery through the use of digital identification, QR codes, product serialization, and data analysis.
It can be a vital part of a manufacturer who wants to secure his product and improve product distribution management.
Track and Trace Technology
Track and Trace is a computerized system that is utilized for recording and managing the movements of the goods through the supply chain route. The system enables companies to determine where the product originates from, how it moves, and all the different processes it undergoes prior to reaching the customer.
Tracking is the process of monitoring movements of the product, while tracing enables companies to analyze the movement route of the product and identify where it originated from or what processes it underwent.
Some of the technologies employed in modern track and trace systems include:
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QR Codes: Allow identification, scanning, and verification of a product.
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Barcodes: Facilitate recording of product data and management of the inventory.
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RFID Tags: Facilitates the automatic identification and tracking of products using radio frequencies.
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GPS Tracking: Assists in tracking the location of vehicles and shipments.
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Product Serialization: Ensures unique identification of each product or shipment using a code.
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Data Analytics: Helps to spot anomalies in scanning and distribution throughout the chain.
Combining these technologies results in enhanced tracking and tracing of products.
Why Is Track and Trace Technology Important for Businesses?
Normally, supply chain management is not always done using digital ways, hence making it difficult to detect product diversion, investigate distribution discrepancies, and discover unauthorized products.
Read also: How Track & Trace Technology is Transforming Supply Chain Transparency in India
Track and trace technology solves all those problems by digitizing the record-keeping process.
1. Increased Visibility of the Product Movement in the Supply Chain
To control the inventory and coordination of the product delivery, businesses need proper information on the movement of products. Track and trace system records various events related to the product's delivery, which provides manufacturers with an opportunity to track products' movements from one facility to another and from distributors and retailers.
Such visibility will help companies plan their inventories, coordinate operations, and analyze any discrepancies or delays in delivery.
2. Increased Security against Counterfeit Products
The counterfeited products will harm the brand's reputation, revenues of businesses and pose dangers to consumers. To increase the security of the products, track and trace technologies provide unique codes and monitor the product verification activity.
With the combination of secure product authentication systems, the manufacturers will be able to investigate the repeatable verification and suspicious patterns of product movement.
3. Improved Control of Distribution
Sometimes products find their way into an unauthorized market or distribute through channels that are not authorized. This can impact pricing and performance of sales and affect the relationship with authorized partners.
Through the identification of the products and documentation of the process, companies are able to research any anomalies in the distribution process, which might indicate market leakage. This helps increase accountability throughout the distribution network.
4. Increased Efficiency
Manual systems of tracking products are cumbersome especially for companies that have many products to track. With the help of digital tracking systems, it is easy for companies to gather information and avoid using paper documents.
This will ensure that less time is wasted on administrative issues while more time is focused on solving operational issues.
Read Also: Counterfeit Prevention: How Brands Can Prevent Counterfeiting and Protect Customers Online
How Does Track and Trace Technology Work?
Track and Trace Process Follows a Stepwise Approach for Identifying and Tracking the Product.
Step 1: Identification of Product by a Unique Identifier
Each product and batch of products is assigned with a unique identifier, which is dependent upon business requirements. This identifier may take various forms such as QR Code, Bar Codes, RFID Tag, or others.
Serial Numbering helps in distinguishing each product from one another.
Step 2: Identify Code on Product Packaging
This unique identifier is placed on the packaging or label of the product. Business houses can incorporate this process into their manufacturing process as well.
Proper labeling and authentication techniques can be used to prevent duplication of the product.
Step 3: Recording of Supply Chain Events
Information concerning the events related to the movement of products throughout manufacturing, warehousing, dispatching, distribution, and retailing is captured by either an authorized user or the system itself.
The information captured may include such information as identification of products, timestamp, location, and shipment information.
Step 4: Monitoring of Product Movement
Firms are able to analyze the captured events through a centralized dashboard or tracking system. This kind of monitoring enables firms to monitor the movement of products and ensure that there are no delays or discrepancies in the distribution of products.
In case the implementation allows, alerting mechanisms can be used to determine whether there is any abnormal event that requires further investigation.
Step 5: Analysis of Data and Verification of Products
Analysis of the track and trace data helps firms to determine the pattern and performance of their supply chains. In conjunction with product verification mechanism, it helps in detecting any duplicate or suspicious scan.
This method not only ensures the security of the products but also gives valuable information concerning distribution processes.
Industries That Benefit From Track and Trace Technology
These solutions have a great significance in industries which require tracking and tracing of authentic products or components and distribution management.
Pharmaceuticals and Healthcare: Tracking and tracing of products would be helpful for record keeping and investigating potential problems with some of the products.
FMCG and Consumer Goods: Businesses will be able to track their product distribution and investigate any suspicious activity related to packaged goods, personal care products, and home necessities.
Automotive and Spare Parts: The companies will be able to track their products and know anything that happens to be counterfeit regarding the spare parts.
Electronics: Tracking the product would help authenticate the product and distribute the product effectively throughout the product life cycle.
Agriculture and Seeds: With tracking, it is possible for the company to retain information on batches of goods and channels of their delivery for agricultural products.
Industrial Manufacturing: It would be possible for companies to control components, final product, and logistics.
The list of advantages depends primarily on the industry requirements and the process of tracking itself.
How Track and Trace Technology Helps Prevent Counterfeiting
Product counterfeiting still poses problems for manufacturers operating in various sectors. Normal packages can be replicated, thereby making it hard for consumers to differentiate authentic products from the unauthorized copies.
The track and trace technology will solve this problem by incorporating unique product identification and scanning verification.
For instance, the manufacturer can provide every item with a unique QR code which, once scanned by the distributors or the buyers, can validate the product details and also register the event. In case of repeated scanning in abnormal situations, the system might be able to raise an alert for further investigation.
But tracking alone cannot ensure authenticity. Companies need to include tracing as well as security codes, authentication, appropriate packaging security measures, and scanning in order to build a robust product protection system.
Choosing the Right Track and Trace Solution
Prior to installing a tracking system, organizations must assess their supply chain architecture, product quantities, security considerations, and integration requirements.
Some important considerations are:
Scalability: The solution should be scalable according to growth in number of products and larger distribution network.
Integration: The solution should have good integration with other systems such as manufacturing, packing or inventory systems.
Data Security: Records pertaining to product and distribution should be protected by appropriate measures of security and access control.
Availability of Real-Time Data: The system should offer real-time data availability whenever required.
Analytics and Reporting: The right reports can help identify any disparities and assess distribution success.
Authentication Capabilities: For companies concerned about counterfeited products, the solution offering tracking and authentication capabilities has to be taken into account.
With the selection of an appropriate solution, organizations can create a transparent supply chain without making their routine complicated.
Strengthen Product Security with VCQRU Track and Trace Solutions
VCQRU provides track and trace systems that aim at enhancing visibility within the supply chain, monitoring product movements, and increasing the security of products. The strategy involves the identification of the product, monitoring of digital data, scanning of codes, and analyzing the information to improve distribution management.
Linking product traceability and anti-counterfeit measures enables a business to have insight on the movements of products as well as investigating suspicious verification attempts.
The above capabilities may prove valuable to those manufacturers who wish to increase control on their distribution networks and build up customer/channel partnerships.
The track and trace system has proved to be very helpful for those companies interested in gaining more supply chain visibility, controlling product distribution and creating additional barriers to counterfeit products. The combination of unique product identification, digitization, tracking and analytics gives manufactures more insights into the flow of their product and its possible threats.
With the growing complexity of the supply chain, the implementation of a proper track and trace system will help companies achieve better efficiency in operations, product authentication and customer satisfaction.
For those manufacturers who need to enhance their product security strategy, VCQRU offers systems that combine traceability and brand protection.
