Traceability: the secret to many brands’ success
04/10/2024
More and more manufacturing and distribution companies are showing interest in RFID technology, so I had a chat with my colleague Cristiano to learn more and understand the role traceability plays in a brand’s success.
Here’s what he told me!
Companies turn to us for various reasons, often linked to the specific needs of their product categories and geographical markets.
For example, in the manufacturing sector, traceability is essential to ensure product safety and quality – especially when exporting to markets with strict regulations.
In the fashion industry, on the other hand, traceability has become crucial to combating counterfeiting and ensuring the authenticity of luxury goods.
In the pharmaceutical industry, traceability is fundamental for monitoring the distribution chain of medicines and preventing fraud, particularly in emerging markets.
The first is a clear definition of the scope. It is essential to have a well-defined and realistic goal. For example, a company might choose to trace only part of its supply chain initially, and then expand the project later.
The second factor is the choice of enabling technologies, both hardware and software. This includes integrating existing systems and adopting new solutions such as IoT sensors, smart labels, and Artificial Intelligence.
Finally, consulting with those who have already managed similar projects is crucial; past experiences offer valuable lessons that can help avoid mistakes and optimise processes. It’s a matter of both effectiveness, ensuring the system works as intended, and efficiency, maximising return on investment. Payback period and ROI are often decisive in choosing whether to undertake a traceability project.
The implementation of RFID technology has become more cost-effective and efficient. Today, RFID tags are both cheaper and more advanced, and integrated software offers significant advantages.
Think about the value of data: an RFID system enables near real-time monitoring of production, allowing for faster and more accurate decision-making compared to barcodes. It also helps detect and locate theft within the distribution chain.
As for process improvements, here are a couple of examples: checking the contents of packages now takes just a few seconds without opening any boxes, and a store inventory no longer lasts several days, but just a few dozen minutes.
Finally, RFID technology ensures the originality and authenticity of products and provides smart services, improving brand management, helping to identify dishonest resellers, and maintaining brand integrity.
