Apart from manufacturing products effectively and distributing them, in today’s scenario, companies need to have insight about where their products are being manufactured, warehoused, transported, distributed, and eventually authenticated by the customers. And it is in this scenario that track and trace system plays an important role within the realm of supply chain management.

Companies belonging to sectors like FMCG, pharmaceuticals, automobiles, electronics, agriculture, chemicals, and consumer goods are increasingly using technology-based methods for improving transparency in their supply chains and minimizing counterfeit activities. Companies looking for reliable track and trace system for manufacturers in India can make use of these systems for developing product-level visibility and protecting brands.

What Is a Track and Trace System?

Track and Trace is a technological approach for tracking the movements of goods through the supply chain. Depending upon the requirement of the business, different types of unique identifiers may be used for each product, including serialized QR codes, RFID tags, NFC tags, and other types of digital identities.

All the necessary movements or verifications can be recorded, which makes it easy for the business to keep track of how the product has moved from manufacture to distribution and sometimes even up to the final consumer.

Current track and trace technologies can include serialization, authentication, GPS tracking, scanning, alerts, and analytics, among others.

Why Do Businesses Need Track and Trace Solutions?

Supply chains in traditional environments comprise several entities like manufacturers, warehouses, distributors, retailers, and logistics providers. Tracking through digital means is required because without this, identifying the whereabouts of a specific item may become difficult.

Track and trace solution can provide organizations with:

• Product movement control throughout various stages of the supply chain
• Improvement of batch and item traceability
• Detection of unauthorized distribution and market diversion
• Suspicious activities and double scanning detection
• Improved visibility of inventory and distribution processes
• Help in recalling the products
• Increased consumer confidence
• Supply chain analytics generation

If an organization faces a problem of counterfeit products, the tracking and authentication combination can be used to detect any suspicious behavior or counterfeit hotspots.

Read also: How Track & Trace Technology is Transforming Supply Chain Transparency in India

Role of Track and Trace System Manufacturers in India

The scope of involvement of track and trace system manufacturers in India is not only restricted to offering the tracking software but may also include product serialization, secure labeling, QR or RFID technology, cloud dashboards, integration solutions, authentication, and analytics.

A reliable vendor of the technology should have enough knowledge about the business of its customer and adjust the solution based on the nature of products, supply chain model, industry specifics, and other aspects.

For example, the supplier for a pharmaceutical company might be asked to implement unit serialization, while a carmaker needs to have authentication and tracking solutions for spare parts. The FMCG industry would be interested in the batch tracking of products.

Key Technologies Used in Track and Trace Systems

1. Serialized QR Codes

Serialized QR codes may provide each product or product batches with a digital identity through which the movement of goods and the process of verification can be tracked.

2. RFID and NFC

Whereas there is a need for contactless identification and tracking, RFID and NFC technology can be utilized. The technologies provide visibility of products and assets and supply chain.

3. GPS Tracking

Through GPS tracking, shipment movements and logistics can be monitored in real-time.

4. IoT Monitoring

The Internet of Things technology may be utilized in monitoring the location, temperature, and other variables as may be required in some products or shipments.

5. Cloud-Based Dashboards

Through the use of dashboards, businesses can view all kinds of information about the tracking process, such as scanning activities, alerts, and analytics among others.

There are track and trace systems that utilize all the above technologies in combination depending on the needs of businesses.

How Track and Trace Helps Prevent Counterfeiting

The fake products pose difficulties both for businesses and consumers. The fake products can lead to lower income, reputation issues, and even danger in such industries as pharmaceutical products, auto components, and electrical goods.

Digital product identity provides companies with an opportunity to authenticate their products at various stages of the supply chain process. If the code is scanned frequently, seen in an unusual place, or some other suspicious actions occur, it will help to detect duplicating or moving products illegally.

This creates a connection between product authentication and traceability. Thus, companies will not just ask themselves if a product is real but will receive additional information on how the product was moved and verified.

VCQRU offers to combine track and trace and product authentication, serialized codes, real-time alerting, and supply chain visibility.

Industries That Can Benefit From Track and Trace

Pharmaceutical Industry

Serialization, authentication, and tracking during the shipment process can be helpful in managing traceability in the pharmaceutical industry as counterfeited drugs can pose major risks.

FMCG and Consumer Goods

FMCG products pass through long and complicated supply chain distribution networks. Track and trace solutions can be helpful for brands to keep track of the batch and its distribution.

Automotive and Spare Parts

The brand's reputation and consumer safety can get affected by counterfeit automotive spare parts. Product authentication and traceability can help brands confirm their genuine spare parts and keep track of the product's movements.

Electronics and Electrical Products

Chargers, cables, accessories, and other electronic products can reach distribution networks that are quite complicated. Digital authentication and traceability solutions can be helpful to detect any kind of suspicious product and distribution pattern.

Agriculture and Agro Products

Seeds, fertilizers, pesticides, and other agricultural products can have product authentication and distribution tracking advantages especially when products are distributed through multiple dealers and regional markets.

Industrial Products

Industrial equipment, parts, paints, lubricants, and construction products are manufactured by industrial product manufacturers who can use traceability solutions to manage the product's movement and distribution channel.

What Should You Look for in a Track and Trace Provider?

When considering track and trace solution providers in India, companies need to evaluate multiple aspects.

Scalability

It is vital for the solution to be capable of handling the present volumes of products while being scalable to meet future growth requirements.

Product-Level Traceability

Solutions providing unique identification and traceability on the right level are to be considered—unit, batch, shipment, or asset.

Integration Capabilities

Track and trace platforms should preferably have capabilities of integrating with existing ERP, CRM, warehouse, manufacturing or logistics systems through API integration to minimize manual data entry.

Security

Because commercial interests of a business might be tied to product or supply chain data, security, access control, encryption and dependable infrastructure will play a role in selection criteria.

Analytics and Alerts

It is expected from a good system to be able to not only collect data but detect any anomalies, abnormal movement, multiple scanning and similar events.

Consumer Verification

In case of consumer-facing brands, consumer verification capability could be added to the list of desirable features.

Why Choose VCQRU for Track and Trace Solutions?

VCQRU offers track and trace services and product authentication solutions that are tailored to organizations looking to increase supply chain visibility and protect their brands.

The track and trace platform from VCQRU has functionalities like product serialization, QR and NFC based authentication, real-time shipment tracking, geo fencing, distribution tracking, and analytics. This platform is ideal for the FMCG industry, pharma, automobiles, electronics, manufacturing, and consumer goods among others.

Moreover, VCQRU integrates its track and trace capabilities with anti-counterfeit solutions. Their platform enables brands to track duplicate scanning, fraudulent behavior, product movement, and authentication events.

Conclusion

The contemporary supply chain is turning into an increasingly digitized one and, therefore, requires efficient systems for understanding the location and movement of products within the distribution chain. Well-implemented tracking and tracing technology helps enhance visibility, facilitate product authentication, increase distribution management and even provide additional operational intelligence.

Companies looking for track and trace solution for manufacturers in India must consider those who have high tech capabilities, scalability, product security features, ability to integrate with other systems, and knowledge about the industry.

With a proper track and trace solution, companies will not only be able to trace shipments, but also to have an improved and digitized distribution chain overall.