It’s one thing to say that your products are authentic, manufactured in a particular location, or certified to meet sustainability standards; it’s another thing to prove it. Without traceability mechanisms throughout your supply chain, claims about materials, provenance, or certifications remain just that — claims.
While tracking items as they move through the supply chain is important, traceability extends well beyond that. Robust traceability systems capture key data points about individual products, allowing companies to ensure quality, prevent fraud, and demonstrate credible ESG metrics.
It all starts with data, including unique product identifiers and a common language for capturing information, enabling interoperability throughout the supply chain. By implementing traceability solutions such as 2D barcodes, like QR codes, and Radio Frequency Identification (RFID) technology that can leverage this data, brands can ensure safety and reduce waste while also reaching their premium pricing potential with verified high-quality products.
“It all comes down to data sharing and making sure that data is authenticated so it can be trusted,” says Amy Reiter, senior director, customer success with GS1 US, the leading not-for-profit information standards organization. “The amount of traceability data is growing all the time because consumers want this information, so the key is to use the right tools that take data sharing from a matter of weeks to seconds,” she says.
Unique identification is the foundation
To capture and share information about a product, you must first be able to differentiate it from others. This is the first step towards full traceability, and by using Global Trade Item Numbers (GTINs) and Global Location Numbers (GLNs), producers and retailers can start identifying exactly what a product is and where it’s been in the supply chain.
With 2D barcodes or RFID tags, brands can link data to individual products for supply chain visibility. The Electronic Product Code Information Services (EPCIS) is a common framework for sharing that data, essentially capturing the what, where, when, why, and how of every product so that stakeholders throughout the supply chain can see it and verify it with a simple scan.
“If you have one barcode or one RFID tag on a product, that data is technology agnostic and can be shared back and forth,” Reiter says. It’s more important than ever to enable the sharing of traceability data as the industry transitions to 2D barcode reading at the retail point of sale and as global regulations like Digital Product Passports come into force.
Traceability improves product security and safety
What can brands and retailers do with that traceability data? They can use it to determine product authenticity and spot counterfeits. At the macro level, cargo theft is a growing problem, driving new regulations to address it. With unique product identifiers and data captured through EPCIS, brands can trace and verify each product as it moves through the supply chain.
At the micro level, this can prevent fraud in individual retail purchases. “If someone tries to ‘return’ an item that was never sold, you’ll see immediately upon scanning the RFID tag or the 2D barcode that this serial number was never purchased,” Reiter explains. “In fact, RFID technology is one of the mechanisms that supports new cargo theft legislation.”
For producers of perishable or sensitive goods, traceability data demonstrates product safety and authenticity. For example, food and beverage products or pharmaceutical products must be stored at specific temperatures, and expiration dates and travel times must be adhered to. By capturing each EPCIS event in a product’s journey, producers and end retailers or consumers can be confident that a particular product is safe. If a recall does occur, the data tied to unique identifiers makes it more efficient to remove those products from shelves, thereby protecting consumers and brands’ liabilities.
Verify sustainability claims with data
Consumers want to know that the products they buy are real, safe, and sustainably produced. Led by Gen Z, but by no means exclusive to that generation, consumers’ preferences today mean that sustainability certifications are increasingly expected, particularly in retail sectors like apparel.
“Traceability is the crux of sustainability claims — in complex supply chains like apparel, for example, you can’t verify a sustainability claim unless you can prove the farm that produced the fiber is organic,” Reiter says. She also notes that the list of sustainability certifications has grown significantly, as end consumers demand more information: “The Organic Cotton Standard, Recycled Content Standard, Fair Trade practices, even specific animal-welfare certifications like the Responsible Alpaca Standard have all grown in number and importance in the last five years.”
Certifications can be digitally linked to their unique product identifiers, enabling retailers to verify product data and inform consumers. Retailers can justify any premium pricing by proving the quality and standards of their products, and customers can trust that an organically grown cotton sweater is exactly what it is advertised to be. This builds consumer confidence while protecting brands’ reputations.
Proof drives profitability in today’s market
Whether it’s proving product safety, preventing fraud, or verifying sustainability claims, traceability data is becoming increasingly valuable for brands and producers. Tools to improve data sharing for traceability and supply chain visibility include 2D barcodes and RFID tags. By combining these technologies with unique identifiers and a common data-sharing framework like EPCIS, brands can not only say but also prove that their products are authentic, sustainable, and of high quality in today’s crowded marketplace.
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