Product Serialization - The Route To Better Traceability, Reduced Inventory And Zero Wastage

Photo by Brett Jordan on Unsplash

Product serialization makes it possible to have complete traceability of a product wherever it ends up. This makes distribution chains more efficient and is ideal for highly regulated markets like pharmaceuticals. It’s also an important safeguard for markets such as cosmetics and fragrances that are affected by counterfeiting. 

But serialization brings a new problem: how to manage all of the identification and tracking data efficiently.

In many ways, data management is the trickiest part of product serialization. Assigning a unique identifier to a product using a QR code, NFC or RFID is established technology. But as each of those products moves through a global supply chain to reach consumers it accumulates multiple data points along the journey.

When there are millions or billions of product items being moved around there’s suddenly a huge task to store all of that data. It’s even harder to filter and use it to add value to the process.

Product serialization is turning major packaging providers into data management specialists as they seek to bring the benefits of the process to their customers.

Product Serialization Benefits

Given the scale of the data management challenges, you could ask ‘why bother?’ In fact, product serialization brings many benefits. And in some markets such as pharmaceuticals most countries insist on it within their compliance requirements.

And if, as expected, a significant proportion of pharma manufacturing moves to small batch or even personalised production, individual product identification becomes essential.

Supply Chain Tracking

Tracking products in real time as they move through global supply chains is vital in a world that increasingly expects just in time delivery to shrink inventory costs. A QR code, NFC tag or barcode that uniquely identifies a consignment can be instantaneously scanned and checked in or out of each link in the supply chain.

Within each consignment there are individual products that can then be tracked right through to the consumer. It’s possible to know when an individual product was sold or prescribed in a specific location on a particular day. If you can aggregate and analyse this data you have incredibly detailed market intelligence to guide production planning as well as business and marketing strategies.

Product serialization offers protection against counterfeiters. And it simplifies the process if products need to be recalled. It also protects against unauthorized product diversion by plotting the intended route for each product right through to the end user.

One of the biggest potential advantages is better inventory control.  Product tracking can be linked to automated re-ordering systems to ensure stock never sells out - and to ensure that product shortages in one part of the world are met by surpluses elsewhere to avoid wastage.

Branding and Loyalty

Loyalty programmes can be managed efficiently if customers simply have to scan a QR code that uniquely identifies a product they’ve purchased. This can trigger more detailed advice about how to use the product along with important brand messages.

Product serialization means that these programmes can be administered directly by manufacturers and distributors rather than through retailers.

Product Serialization - The Data Challenge

Data is only useful when it’s usable. Sorry if that sounds like a bit of a truism but modern businesses have a tendency to collect far more data than they can use. They also lack the tools to extract relevant or mission-critical data in real time.

The problem with reactive or retrospective data analysis is that an awful lot of product can be manufactured and shipped before anyone knows anything is wrong. This brings risks of reputational damage and large quantities of product that either can’t be sold or are likely to go out of date before they reach consumers.

Exceptions need to be flagged immediately and corrective action taken. Products stuck in customs or at distributors, for example, also need to be highlighted so that supplies aren’t interrupted.

It’s clear that product serialization offers manufacturers and their supply chain significant benefits. Packaging providers that can deliver intelligent data management and tracking solutions are likely to become sought-after partners.